Nobia (NOBI) Q3 2025 earnings summary

Executive summary

• Operating and EBIT performance improved year-over-year, with EBIT margin rising and operating cash flow turning positive despite a 3% organic sales decline, mainly due to volume drops in both regions and UK store closures.

• The Nordic region achieved 1% organic sales growth after 11 quarters of decline, while the UK saw a 7% organic sales drop but improved EBIT margin to 0.2%.

• Cost reductions and strategic initiatives in the Nordics and UK supported margin gains and cash flow improvements.

• SEK 1.9 billion non-cash impairment was recognized for UK operations, mainly related to intangible assets.

• Nobia Park in Jönköping was inaugurated, advancing strategic goals and production capabilities.

Financial highlights

• Group net sales declined to SEK 2,308m (from SEK 2,478m), with a 3% organic decrease year-over-year.

• Gross margin increased to 38.6% (from 37.4%), driven by improvements in the UK and higher order values in the Nordics.

• Adjusted EBIT rose to SEK 71m (from SEK 19m), with EBIT margin up to 3.1% (from 0.8%).

• Operating cash flow improved to SEK 102m (from negative SEK 154m last year).

• Net debt (excluding leasing and pensions) increased to SEK 2,645m (from SEK 2,320m), with net debt/equity ratio at 128%.

Outlook and guidance

• Gradual recovery in the consumer market is expected, but project market volumes remain soft, especially in the UK.

• Ongoing ramp-up of Nobia Park and strict cost discipline are key priorities.

• Remaining investments in Nobia Park for 2025 are estimated at SEK 60m CapEx and SEK 150m liquidity outflow.

• Further cost initiatives may be introduced if market softness persists.