Per Aarsleff (PAAL) Q3 2025 earnings summary

Executive summary

• Revenue for the first nine months reached DKK 16,531 million, up 2% year-over-year, with EBIT at DKK 773 million and an EBIT margin of 4.7%, in line with expectations.

• Construction segment revenue was DKK 7,674 million, EBIT DKK 418 million (5.5% margin), with high activity in Denmark and North Atlantic.

• Technical Solutions delivered DKK 2,867 million in revenue and DKK 113 million EBIT (4% margin), with 17% revenue growth and high activity in industry and public sector projects.

• Rail segment revenue declined 9% to DKK 1,455 million, EBIT DKK 54 million (3.7% margin), mainly due to low activity in Norway and Sweden.

• Ground Engineering revenue was DKK 2,616 million, EBIT DKK 15 million (0.6% margin), impacted by low demand, project delays/cancellations, and price pressure.

• Pipe Technologies achieved DKK 1,919 million in revenue, EBIT DKK 173 million (9% margin), an all-time high, driven by strong market conditions and capacity utilisation.

Financial highlights

• Order backlog stands at DKK 25,092 million, with order intake of DKK 17.3 billion for the first nine months; Q3 order intake was DKK 5.6 billion.

• Revenue increased by 1.8% year-over-year, with 0.6% organic growth; Danish operations grew 0.6%, foreign operations 3.8%.

• EBIT margin improved to 4.7% from 4.6% last year; net profit for nine months was DKK 593 million, up from DKK 573 million.

• Earnings per share rose to DKK 30.54 from DKK 29.35 year-over-year.

• Cash flow from operating activities was DKK 1,799 million, with a positive DKK 609 million effect from working capital reduction.

Outlook and guidance

• Full-year revenue guidance narrowed to DKK 22.2–22.7 billion (2–4% growth); EBIT expected at DKK 1,125–1,175 million, with an EBIT margin around 5%.

• Investments in property, plant, and equipment (excl. leases) expected at DKK 700–750 million.

• Approx. 96% of expected full-year revenue is covered by the current order backlog.

• Ground Engineering expected to improve in Q4 as postponed projects ramp up, but remains the segment with highest uncertainty.

• Defense sector projects are expected to materialize within a year, with potential for large contracts.