AFRY (AFRY) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw stable results with a 6.4% EBITA/EBITDA margin, despite a 5.1% year-over-year decline in net sales to SEK 5,687 million, mainly due to negative currency effects and lower volumes.

• Order backlog increased by 3.6% year-over-year (5.3% currency-adjusted) to SEK 20.4 billion, reflecting strong project wins and ongoing sales efforts.

• New group structure with three global divisions launched, focusing on utilization and cost base optimization, with ongoing restructuring and SEK 31 million in Q3 restructuring costs.

• Segment performance was mixed: Energy and Industry saw sales declines but solid or improved margins, while Transportation & Places achieved sales growth and margin improvement.

• Major new contracts secured in mining (Sakatti/Anglo American), energy (Svenska Kraftnät), and transportation (Danish Road Directorate); Reta Engenharia acquisition completed.

Financial highlights

• Q3 net sales: SEK 5,687 million; EBITA/EBITDA (excluding IAC): SEK 362 million; margin 6.4% (up from 6.1%).

• Rolling 12 months: net sales SEK 26.2 billion, EBITDA just below SEK 1.9 billion.

• Adjusted organic growth: -3.7% year-over-year; total growth: -5.1%, impacted by FX and volume declines.

• Operating cash flow improved to SEK 418 million (162), with available liquidity at SEK 3.7–3.8 billion.

• Net debt (excluding lease liabilities) at quarter-end was SEK 5,086 million; net debt/EBITDA (excl. IFRS 16) was 2.1x–2.9x.

Outlook and guidance

• Continued focus on improving utilization and cost base, with restructuring costs estimated at SEK 200–300 million from Q3 2025 to Q2 2026.

• Normal seasonality anticipated to provide significant deleveraging in Q4, targeting net debt/EBITDA at or below 2.5x.

• Positive long-term demand in energy, defense, mining, and infrastructure, but short-term regional and segment variations expected.