Nobia (NOBI) Q3 2025 earnings summary

Executive summary

• Operating and EBIT performance improved year-over-year, with EBIT margin and operating cash flow rising despite a 3% organic sales decline and soft product markets.

• Group net sales declined organically by 3%, mainly due to volume declines in both regions and UK store closures, while the Nordics returned to growth after 11 quarters of decline.

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

• Strategic focus on cost efficiency, Nordic supply chain optimization, and UK transformation, with ongoing ramp-up of Nobia Park in Sweden.

• Consumer segment growth continues, with increased store visits, kitchen design appointments, and a shift to higher value products.

Financial highlights

• Group net sales for Q3: SEK 2,308m (down from SEK 2,478m); organic decline of 3%.

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

• 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 SEK -154m last year).

• Cost-out programs have generated total savings exceeding SEK 650 million.

Outlook and guidance

• Gradual recovery in the consumer market is expected to continue, supported by housing transactions, consumer confidence, and government grants.

• Continued softness expected in project market volumes, especially in the UK, with further cost initiatives possible if markets remain soft.

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

• Confident in long-term achievement of targets with the new Jönköping facility.

• UK market remains cautious due to high interest rates and uncertainty around government initiatives.