C-RAD (CRAD) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw 12% revenue growth to MSEK 112.2 and 7% order intake growth to MSEK 106.4, led by EMEA and Services, with EBIT margin improving to 19% from 17% due to favorable market mix and strong service contributions.

• EMEA delivered 112% order intake growth and 52% revenue growth, while Americas and APAC experienced declines due to market uncertainty and slower decision-making.

• Services business saw order intake surge 160% and revenue grow 35%, with rolling 12-month service revenue exceeding SEK 90 million and a rising share of total revenues.

• Operating cash flow improved to SEK 24.4 million, and cash balance increased to SEK 173 million, with no long-term debt.

• CEO transition announced post-quarter, with CFO Linda Frölén appointed acting CEO; new executive team formed to drive strategy.

Financial highlights

• Gross profit reached SEK 83 million, up from SEK 73 million year-over-year; gross margin was 74%, temporarily elevated by one-off license fee repayments and higher-margin service revenue.

• EBIT for Q3 was SEK 21.2 million, up 22% year-over-year, with EBIT margin at 19% (up from 17%).

• Operating expenses increased 12% year-over-year to SEK 60 million, mainly due to conference timing and bonus provisions, but annualized OPEX down SEK 25 million since Q3 2024.

• Net earnings for Q3 were SEK 12.9 million (down from 15.3), with profit after tax adjusted for currency effects at SEK 16.1 million.

• Cash flow from operating activities improved to SEK 24.4 million in Q3 and SEK 50.5 million for the interim period.

Outlook and guidance

• Management targets average organic growth above 10% and a 25% EBIT margin medium-term, with at least 30% of net profit returned to shareholders.

• Focus remains on accelerating sales, product innovation, and expanding the service offering.

• External risks such as geopolitical instability, inflation, and potential US tariffs are being closely monitored.