Vestum (VESTUM) Q3 2025 earnings summary

Executive summary

• Sequential profitability improved, with an adjusted EBITDA/EBITA margin of 11% in Q3 2025, despite a 2% organic growth decline and tough comparables from Q3 2024.

• Net sales for Q3 2025 were SEK 889 million, down 13% year-over-year, mainly due to divestments and negative organic growth.

• Stable demand and volumes, with September being the strongest month and an uptick in demand toward quarter-end.

• Profitability was affected by SEK 16 million in non-recurring adjustment items, mainly related to revalued contingent considerations.

• Cash flow was impacted by increased investments and working capital tie-up.

Financial highlights

• Q3 2025 net sales: SEK 889 million, a 13% decrease year-over-year, mainly due to divestments.

• Adjusted EBITA for Q3 2025 was SEK 98 million, with an adjusted EBITA margin of 11.0%.

• LTM free cash flow was SEK 70 million, or SEK 106 million excluding change in net working capital.

• Cash flow from operating activities in Q3 was SEK 51 million, down from SEK 92 million in Q3 2024.

• Extraordinary financial costs of SEK 25 million in Q1 from bond redemption impacted LTM free cash flow.

Outlook and guidance

• Flow Technology segment expected to benefit from UK infrastructure investments (AMP8), Sizewell C nuclear project, and recent acquisitions, with stable demand and strong profitability anticipated.

• Expectation of stable development and continued profitability improvement, especially as construction investments in Sweden recover.

• Working capital release could occur in Q4 or Q1, depending on timing.

• Some positive signs observed toward the end of the quarter, but it is too early to confirm a new positive trend.