Troax Group (TROAX) Q3 2025 earnings summary

Executive summary

• APAC delivered strong growth across all countries, while Europe and Americas lagged with only early signs of recovery in warehousing and continued weakness in automotive and construction.

• Americas experienced a significant decline in order intake and profitability, with high customer hesitancy and operational issues.

• Order intake and sales both declined by 7% year-over-year, impacted by a one-off factory transfer from Poland to Sweden.

• Cost reduction initiatives are progressing as planned, with underlying reductions in sales and administrative costs.

• Profitability was impacted by lower volumes, one-off costs from the closure of the Polish facility, and delayed price adjustments in North America.

Financial highlights

• Q3 order intake was €62.2M, down 7% year-over-year, with a €3M negative impact from the factory transfer.

• Net sales for Q3 were €64.2M, a 7% decrease year-over-year.

• Adjusted EBITA was €10.3M (16.1% margin), down from €13.6M (19.7% margin) last year.

• Adjusted EPS was €0.12, compared to €0.16 in Q3 last year.

• Free operating cash flow reached €12.6M, with a cash conversion rate of 122%.

Outlook and guidance

• New 2030 financial targets: at least €550M in sales (15% CAGR), adjusted EBITA margin above 20% over the cycle, net debt/EBITDA below 2.5x, and dividend payout of 40%-60%.

• Management expects cost-saving and efficiency initiatives to improve profitability from 2026.

• No specific Q4 sales growth commitment; 2030 targets are long-term ambitions.