VBG Group (VBG) Q3 2025 earnings summary

Executive summary

• Revenue grew 7.5% year-over-year to SEK 1,367.9M, with all divisions and geographies contributing and organic growth of 6.3% after adjusting for acquisitions and currency effects.

• Order intake increased by 10% compared to Q3 2024, with all divisions contributing positively.

• Three acquisitions (Italytec, Ledson, Malmedie) completed in the first nine months, supporting future growth and integration progressing as planned.

• A new sustainability target was set: 62% reduction in Scope 3 CO2 emissions by 2040 (base year 2024).

• All divisions contributed to sales growth, with notable recovery in Mobile Thermal Solutions and strong performance in Ringfeder Power Transmission.

Financial highlights

• Q3 EBITDA was SEK 171 million, with a margin of 12.5%, nearly flat year-over-year; Q3 net sales were SEK 1,367.9M.

• Operating cash flow was SEK 136 million in Q3, and SEK 247.5M for nine months, down from SEK 502.0M year-over-year.

• Earnings per share were SEK 3.87 in Q3; nine months EPS was SEK 12.44.

• ROCE stood at 30.1% in Q3, with a decrease attributed to recent acquisitions and land purchase; cumulative ROCE for nine months was 11.4%.

• Equity/assets ratio at 57.1% (down from 64.4% year-over-year).

Outlook and guidance

• Management anticipates continued market volatility and geopolitical tension but expects to maintain growth, supported by a strong order book, recent acquisitions, and stable cash flow.

• Q4 is expected to see further growth, with SEK 100 million in additional revenues from acquisitions at margins above group targets.

• No formal forecast provided for 2025.

• Long-term organic growth in Mobile Thermal Solutions is projected at 4%-5% CAGR over the next 4-5 years.