AQ Group (AQ) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 2025 increased by 8% year-over-year to SEK 2,114 million, with operating profit up 2% to SEK 191 million and profit before tax up 5% to SEK 187 million.

• For the first nine months, net sales rose 5% to SEK 6,748 million, while EBIT decreased by 2% to SEK 624 million and EBT increased by 1% to SEK 619 million.

• Maintained profitability every quarter since 1994, with a 14% EPS CAGR over the last decade and targets to double EPS every 5 years.

• Organic growth in Q3 was 4.6%, mainly from electrification, defense, and data centers, while acquisition-driven growth was 7%.

• Completed acquisitions of mdexx and Michael Riedel, expanding presence in inductive components and defense technology.

Financial highlights

• Q3 2025 EBIT: SEK 191 million (+2% YoY); EBT: SEK 187 million (+5% YoY); EBT margin: 8.8%.

• Q3 profit after tax was SEK 154 million; EPS before dilution was SEK 1.67 (up from 1.60).

• Cash flow from operating activities in Q3 was SEK 322 million, and for the nine months SEK 799 million.

• Equity ratio improved to 67% (up from 65% YoY), and net cash position reached SEK 429 million.

• Return on equity after tax for the period was 15.1% (16.3%).

Outlook and guidance

• Management targets organic growth above 10% and aims to double EPS over a cycle, but current organic growth is below target at 4.6%.

• High demand expected to continue in electrification, defense, and data center segments.

• Ongoing efforts to improve operational efficiency and margins, especially in recently acquired units.

• No specific forecast for turnover or profit is provided; management expects further demand in defense and data centers.

• Several acquisition targets are under evaluation, with acquired growth above target.