Röko (RÖKO) Q3 2025 earnings summary

Executive summary

• Profit and organic growth lagged expectations due to sector-specific challenges and slower acquisition pace, with net sales up 6% to MSEK 4,776 and adjusted EBITA up 11% year-over-year, driven by acquisitions and margin improvements but offset by negative FX effects.

• Net profit for YTD 2025 was MSEK 553, up from MSEK 534 in YTD 2024, though Q3 net profit declined 5% due to a prior year one-off gain.

• The company completed two acquisitions in 2025, expanding the portfolio to 29 companies across multiple countries and sectors.

• B shares were listed on Nasdaq Stockholm in March 2025, with share structure adjusted and transaction costs of MSEK 41 impacting profits.

Financial highlights

• Adjusted EBITA rose from MSEK 889 to MSEK 983 year-over-year, with the margin improving from 20% to 21%.

• Net sales increased from MSEK 4,513 to MSEK 4,776, with 3% organic growth in local currency and a -3% FX impact.

• Free cash flow declined 6% year-to-date, but only 1% when adjusted for MSEK 41 IPO transaction costs; cash conversion was 68%, or 72% adjusted.

• Return on capital employed improved to 14.5% from 13.8% year-over-year.

• Interest-bearing net debt at MSEK 509, with financial net debt/EBITDA at 2.1x.

Outlook and guidance

• Acquisition pipeline remains strong with many quality opportunities, but competition and high valuations have slowed deal completion.

• Net Debt/EBITDA declined to 2.1x, reflecting strong cash generation and organic profit growth.

• Mixed subsidiary performance, with weaker demand in construction, automotive, and US-exposed companies due to tariffs, but most expected to offset costs with price increases.