Bravida (BRAV) Q3 2025 earnings summary

Executive summary

• EBITA/EBITDA increased to SEK 342 million with a margin of 5.3%, up from 4.5% year-over-year, mainly due to strong performance in Denmark, despite a 2.2% decline in net sales and negative organic growth of 3%.

• EPS rose by 24% year-over-year, driven by margin improvements and strict project selection.

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

• Acquisitions contributed to growth, with two completed by Q3 and additional deals in Q4, adding over SEK 391 million in annual sales.

• CO2 emissions per net sales down 42% since 2020, with LTIFR improved to 5.0.

Financial highlights

• Net sales declined by 2.2% year-over-year to SEK 6,433 million, mainly due to selective project intake and market softness.

• EBITA/EBITDA margin improved to 5.3% from 4.5% year-over-year, driven by Denmark's performance.

• Operating cash flow was negative SEK 111 million in Q3, with cash conversion at 63% versus 134% last year, due to timing of large project invoicing.

• Net debt stood at SEK 3,469 million, with net debt/EBITDA at 1.5x, below the 2.5x target.

• Dividend payout ratio was 73%, above the >50% target.

Outlook and guidance

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

• Market is expected to remain challenging into 2026, with stable service demand but unpredictable installation demand.

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

• Continued focus on selective project strategy and cost control, prioritizing margin over volume.

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