Kempower (KEMPOWR) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw order intake rise 45% year-over-year to EUR 74.7 million and revenue up 41% to EUR 73.7 million, with strong growth in North America and Europe outside the Nordics offsetting weaker demand in the Nordics.

• Operative EBIT turned positive at EUR 0.2 million in Q3 2025, improving by EUR 8 million year-over-year, and operating cash flow was EUR 3.9 million, both marking significant improvements.

• Gross profit margin declined to 45.8% in Q3 2025 from 51.3% a year ago, mainly due to price competition, obsolescence costs, and sales mix shifts, but year-to-date margin remained steady at 48.4%.

• Strategic investments in North America and Europe outside the Nordics are yielding strong results, with new customer acquisitions and significant order and revenue growth.

• Maintained positive operating cash flow for the second consecutive quarter and reduced fixed costs.

Financial highlights

• Q3 2025 order intake reached EUR 74.7 million (+45% year-over-year); revenue was EUR 73.7 million (+41% year-over-year); year-to-date revenue growth at 18%.

• North America Q3 order intake up 149% to EUR 16.7 million; revenue up 242% to EUR 11.8 million.

• Europe outside Nordics Q3 order intake up over 80% to EUR 41.4 million; revenue up 76% to EUR 37.1 million.

• Gross profit margin for Q3 2025 was 45.8% (down from 51.3% last year); year-to-date margin at 48.4%.

• Net debt improved to EUR -19.4 million at period end.

Outlook and guidance

• 2025 revenue expected to grow 10–15% (previously 10–30%), reflecting timing of order deliveries and backlog scheduled for 2026.

• 2025 operative EBIT expected to improve significantly from 2024.

• Medium-term targets: EUR 750 million revenue and 10–15% operative EBIT margin by 2026–2028.

• Q4 expected to see 13%–21% revenue growth year-over-year.