ADDvise Group (ADDV) Q3 2025 earnings summary

Executive summary

• Profitability and cash flow improved in Q3, with EBITA margin rising to 15.5%-16% year-over-year, driven by efficiency initiatives and favorable product mix, despite macroeconomic and currency headwinds and a large Eli Lilly order impacting top-line growth.

• Operating cash flow increased significantly to SEK 35 million from -2 million last year, supported by lower interest expenses and moderate working capital build.

• Healthcare segment showed EBITA growth and strong demand, while the Lab segment faced tough comparables due to a large prior-year order.

• The company is experiencing FX headwinds from a strengthening Swedish krona and other currencies, impacting both top-line and earnings.

• Focus remains on generating strong cash flow to support future acquisitions and long-term shareholder value.

Financial highlights

• Net sales for Q3 were SEK 363 million, a year-over-year decline of 10% (4.8% FX-adjusted); order intake declined by 17% (12% FX-adjusted), mainly due to the large Eli Lilly order.

• EBITA was SEK 56-56.4 million, up slightly year-over-year, with a margin of 15.5%-16% (vs. 13.7%-14% last year).

• Adjusted net profit was SEK 19 million, compared to -SEK 5 million in Q3 last year.

• Cash flow from operations was SEK 35 million, with total cash generation from operations at SEK 53 million.

• Financing expenses dropped to SEK 21 million from SEK 44 million last year, contributing to improved results.

Outlook and guidance

• Q4 is expected to be a strong quarter, consistent with seasonal trends; no major comparable large orders from last year.

• Margin improvement trend is expected to continue, with healthcare segment performing well and lab segment facing softer comparables.

• Focus remains on efficiency, financial discipline, and growth through organic means and acquisitions, with long-term targets including annual EBITA growth and ROCE of 15%, net leverage not to exceed 3.0x, and up to 25% of previous year's profit distributed as dividends.

• M&A opportunities are being evaluated with a disciplined approach.