Karnell Group (KARNEL) Q3 2025 earnings summary

Executive summary

• Net sales increased by 22.3% year-over-year to SEK 436 million, with organic growth of 3.7–4% and strong contributions from both product companies and niche manufacturers.

• EBITDA/EBITA rose 26–26.4% to SEK 69–69.4 million, with margin improving to 15.9%, the highest to date, and record return on capital employed.

• Product companies showed particularly strong development, driving most of the growth, while niche manufacturers remained stable.

• Three acquisitions were completed, including Lund Halsey, a UK-based control room console manufacturer, expanding the platform and M&A pipeline.

• Market visibility remains limited, but activity and execution levels are stable across most companies.

Financial highlights

• Net sales for Q3 were SEK 436–436.1 million (up 22.3%), with 3.7–4% organic growth and 21% of the increase from acquisitions; currency effects were -2%.

• EBITDA/EBITA margin reached 15.9%, up from 15.4% last year, the highest to date.

• Cash flow from operating activities was SEK 46–46.4 million in Q3, nearly in line with last year.

• Net debt increased to SEK 410 million due to acquisitions, with net debt/EBITDA at 1.6x and total leverage (including leases, earnouts, options) at 2.4x.

• Earnings per share after dilution for Q3 was SEK 0.85 (up 59%).

Outlook and guidance

• Early signs of market stabilization in core industrial technology and infrastructure sectors, while construction markets in Finland remain subdued.

• Expectation of positive working capital contribution in Q4.

• Confidence in strategy and ability to create sustainable long-term value as the group enters the final quarter of 2025.

• Financial position allows flexibility for further M&A as the platform scales across Europe.

• Continued focus on operational excellence, capital discipline, and selective acquisitions.