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 17.3 billion for the first nine months, driven by small and medium-sized projects and including the acquisition of ArtiCon.

• 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.

Financial highlights

• Revenue increased by 1.8% year-over-year, with 0.6% organic growth; Danish operations grew 0.6%, foreign operations 3.8%.

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

• Technical Solutions: revenue up 17% to DKK 2,867 million, EBIT DKK 113 million (4% margin); high activity in industry and public sector projects.

• Rail: revenue down 9% to DKK 1,455 million, EBIT DKK 54 million (3.7% margin); lower activity in Norway and Sweden.

• Pipe Technologies: revenue up 7% to DKK 1,919 million, EBIT DKK 173 million (9% margin), an all-time high.

Outlook and guidance

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

• 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.