NOTE (NOTE) Q3 2025 earnings summary

Executive summary

• Q3 2025 sales reached SEK 830 million, reflecting 6% organic growth despite a 3% negative currency effect, with profitability strengthening from an already high level.

• Earnings per share increased by 26% year-over-year to SEK 1.92, with profit after tax at SEK 54 million.

• Strong cash flow and liquidity, with SEK 121 million generated in Q3 and SEK 735 million in available cash and equivalents.

• The acquisition of UK-based Kasdon Electronics/Group, expected to close mid-October 2025, will strengthen the defense sector presence.

• Substantial investments are underway in production capacity, technology, and facility expansions to support future growth.

Financial highlights

• Q3 operating profit was SEK 74 million, up 17% year-over-year; adjusted operating profit was SEK 77 million, up 15%.

• Underlying operating margin for Q3 was 9.3%, with a trailing 12-month margin of 9.9%.

• Cash flow for the quarter was SEK 121 million; cash flow per share was SEK 3.69.

• Equity ratio stands at approximately 50%, with net debt at SEK 27 million.

• Inventories in Western Europe decreased 22% year-to-date.

Outlook and guidance

• Q4 2025 sales are projected in the SEK 1,000–1,050 million range, with an operating margin estimate of 10.0–11.0%.

• To achieve a 10% full-year margin, Q4 needs to reach 10.9%.

• Organic growth for Q4 is expected to be positive but low, in the 0%–5% range.

• Full-year turnover is expected to be SEK 100–120 million lower due to currency effects and customer push-outs.

• Management remains optimistic about long-term growth, especially in Security & Defence and Greentech segments.