Sdiptech (SDIP) Q3 2025 earnings summary

Executive summary

• Streamlined portfolio by divesting 11 non-core companies, reducing the group to 30 more aligned units focused on product-based, niche markets with strong growth drivers and strategic alignment.

• Core operations delivered stable growth and margins, with net sales up 9% year-over-year to SEK 1,102 million and adjusted EBITA up 8.6% to SEK 235 million, maintaining a 21.3% margin.

• A SEK 500 million non-cash goodwill write-down related to divestments led to a reported net loss of SEK -419 million for the quarter.

• Solid demand across most business areas, with notable recovery in larger units and strong performance in safety and security.

• Strategic focus sharpened on core operations, with ongoing divestment of non-core businesses and a robust acquisition pipeline.

Financial highlights

• Group net sales reached SEK 1,253 million in Q3, with core operations contributing SEK 1,102 million and 4.5–5% organic growth.

• Adjusted EBITA for the group was SEK 242 million (19.4% margin), and for core operations SEK 235 million (21.3% margin).

• Cash flow from operations was SEK 255 million in Q3, with a 94% cash conversion rate and free cash flow per share up to SEK 5.42.

• Profit after tax was -SEK 419 million, mainly due to the goodwill write-down; excluding this, profit after tax was SEK 81 million.

• Net debt/Adjusted EBITDA: 3.2x; Financial net debt/Adjusted EBITDA: 2.42x.

Outlook and guidance

• Market conditions are stable to cautiously positive in main segments, but a broader recovery is not expected until 2026.

• Q4 expected to benefit from seasonal working capital improvements, though not as strong as last year.

• Acquisition target for 2025 EBITA lowered from SEK 100 million to SEK 50 million due to disciplined valuation.

• Ongoing strategic actions and a robust acquisition pipeline are expected to support long-term value creation.

• Uncertainty remains for Q4 and 2026, with no specific guidance provided.