Bravida (BRAV) Q3 2025 earnings summary

Executive summary

• EBITA increased to SEK 342 million (up 17% year-over-year), with margin up to 5.3% from 4.5%, mainly due to strong performance in Denmark.

• EPS rose by 24% year-over-year, despite a 2.2% decline in net sales, reflecting strong cost control and selective project intake.

• Order intake rose 5% year-over-year, with backlog stable and quality of orders improved, especially in Sweden and Finland.

• Acquisitions added over SEK 391 million in annual sales by Q3, with further small, high-margin acquisitions in Q4.

• ESG progress: CO2 emissions from vehicles down 42% since 2020, and accident rate (LTIFR) improved to 5.0.

Financial highlights

• Net sales for Q3 were SEK 6,433 million, down 2% year-over-year, mainly due to selective project intake and market conditions.

• EBITA margin improved to 5.3% (up from 4.5% last year).

• Organic growth was -3%, with acquisitions contributing 2.5% and currency headwinds present.

• Operating cash flow weakened, with cash conversion at 63% (down from 134% last year), due to timing of large project invoicing.

• Net debt at SEK 3,469 million, net debt/EBITDA ratio at 1.5x, well below the target of 2.5.

Outlook and guidance

• Full-year margin guidance remains close to 5%, with management confident in achieving this.

• Market is seen as having bottomed out, but recovery is expected to take several more quarters, possibly into 2026.

• Service activity stable; installation business faces challenges but infrastructure and defense projects offer opportunities.

• Cash conversion expected to improve sequentially in Q4, but not to previous highs unless large advance payments occur.

• External forecasts suggest installation market growth in 2026 and 2027, but current order intake does not yet reflect this.