Per Aarsleff (PAAL) Q3 24/25 earnings summary

Executive summary

• Revenue for the first nine months reached DKK 16,531 million, up 2% year-over-year, with EBIT at DKK 773 million and an EBIT margin of 4.7%, in line with expectations.

• Order backlog stands at DKK 25,092 million, with order intake of DKK 17,278 million for the first nine months, driven by small and medium-sized projects.

• Guidance for the full year narrowed: revenue growth of 2–4% (DKK 22.2–22.7 billion) and EBIT between DKK 1,125–1,175 million, maintaining an EBIT margin around 5%.

• Cash flow from operations was DKK 1,799 million, positively impacted by reduced working capital.

• Acquisition of ArtiCon in the Faroe Islands contributed DKK 194 million revenue and DKK 9 million profit since April.

Financial highlights

• Construction: revenue DKK 7,674 million, EBIT DKK 418 million, EBIT margin 5.5%, stable year-over-year.

• Technical Solutions: revenue DKK 2,867 million (+17% YoY), EBIT DKK 113 million, EBIT margin 4.0%.

• Rail: revenue DKK 1,455 million (-9% YoY), EBIT DKK 54 million, EBIT margin 3.7%.

• Ground Engineering: revenue DKK 2,616 million (-6% YoY), EBIT DKK 15 million, EBIT margin 0.6%, impacted by low demand and project delays/cancellations.

• Pipe Technologies: revenue DKK 1,919 million (+7% YoY), EBIT DKK 173 million, EBIT margin 9.0%, an all-time high.

Outlook and guidance

• Revenue growth for the year expected at 2–4%, with EBIT margin guidance maintained at around 5%.

• Construction EBIT guidance raised to DKK 570–585 million; Technical Solutions revenue growth outlook increased to 16–20%.

• Ground Engineering segment expected to see a significant Q4 improvement as postponed projects ramp up, but remains the segment with highest uncertainty.

• Approx. 96% of expected full-year revenue is covered by the current order backlog.

• Investments in property, plant, and equipment (excl. leases) expected at DKK 700–750 million.