Storskogen Group (STOR) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 2025 were SEK 7,982 million, essentially flat year-over-year, with organic growth of 4% offset by divestments and FX effects; adjusted EBITA was SEK 759 million, margin 9.5%.

• Profit for the quarter rose 36% to SEK 348 million, with EPS up 41% to SEK 0.19; adjusted EPS grew 40% in Q3.

• Cash flow from operating activities increased 45% year-over-year to SEK 659 million, supporting share buybacks and acquisitions.

• Leverage ratio improved to 2.4x, within the 2-3x target range, and bonds were refinanced at better rates with no maturities until H2 2027.

• Share buyback program of up to SEK 100 million initiated, reflecting confidence in long-term value creation.

Financial highlights

• Q3 net sales were SEK 8 billion, unchanged year-over-year; adjusted EBITA/EBITDA margin was 9.5%, with adjusted EBITA down 3% and EBITDA down 1%.

• Year-to-date net sales declined 5% to SEK 24,374 million, mainly due to divestments; organic sales growth was 1%.

• Net profit rose 36% in Q3 and 20% year-to-date, aided by lower costs and a reduced tax rate.

• Adjusted cash conversion (LTM) was 82%, above the 70% target.

• Equity/assets ratio improved to 49% from 46% a year ago.

Outlook and guidance

• Q4 is expected to be seasonally stronger, with several companies entering high season and order books remaining solid.

• Early signs of market recovery, especially in Sweden, are noted; operational focus and cost discipline remain priorities.

• Cash conversion target of at least 70% over 12 months remains intact.