SP Group (SPG) Q3 2025 earnings summary

Executive summary

• Revenue and earnings for 2025 are expected to remain at 2024 levels despite a 3.3% sales decline in the first three quarters year-over-year, with EBITDA down 6.7% to DKK 417 million and EBT down 9.8% to DKK 229 million.

• Order backlog is increasing for Q4, with growth in subcontracting and several postponed projects now initiated, supporting expectations to match 2024's record results.

• New projects in Healthcare, Cleantech, and defense sectors are anticipated to drive future growth.

• Expansion in Poland and a new factory in the USA are underway to support Healthcare production, with the Atlanta factory operational but expected to negatively impact EBT by DKK 20-22 million in 2025 and break-even targeted for 2026.

• Leadership changes include a new CFO starting January 2026 and a new warrant program for management and key employees established in March 2025.

Financial highlights

• Revenue for the first three quarters of 2025 was DKK 2,122 million, down 3.3% year-over-year; Q3 revenue fell 7.7% year-over-year.

• EBITDA fell 6.7% to DKK 417 million; EBIT dropped 8.9% to DKK 270 million; EBT decreased 9.8% to DKK 229 million.

• Own product sales declined 16.1% to DKK 455 million and now represent 26.5% of total revenue.

• Equity increased by DKK 35 million to DKK 1,732 million; net interest-bearing debt fell by DKK 98 million to DKK 723 million.

• Cash flow from operations for the first three quarters was DKK 328 million, down from DKK 402 million year-over-year.

Outlook and guidance

• 2025 guidance for revenue and earnings is maintained at 2024 levels, with revenue expected between -3% and +3%, EBITDA margin 19-21%, and EBT margin 11-13%.

• Growth is expected from new projects and increased order backlog for Q4, with management expecting improved activity.