This article first appeared on GuruFocus.
- Net Sales (Q3): Increased by 8% to 2.1 billion.
- Operating Profit (Q3): Increased by 2% to 191 million.
- Profit After Financial Items (Q3): Increased by 5% to 187 million.
- Profit Margin Before Tax (Q3): 8.8%.
- Profit After Tax (Q3): 154 million.
- Cash Flow from Operating Activities (Q3): 322 million.
- Earnings Per Share Before Dilution (Q3): Increased by 4.5% to 1.67%.
- Net Sales (First 9 Months): Increased by 5% to 6.7 billion.
- Operating Profit (First 9 Months): Decreased by 2% to 624 million.
- Profit After Financial Items (First 9 Months): Increased by 1% to 6,190 million.
- Profit Margin Before Tax (First 9 Months): 9.2%.
- Profit After Tax (First 9 Months): 509 million.
- Cash Flow from Operating Activities (First 9 Months): 799 million.
- Earnings Per Share Before Dilution (First 9 Months): 5.54.
- Equity Ratio: 67%.
- Organic Growth (Q3): 5%.
- Acquired Growth (Q3): 7%.
- Negative Currency Effect (Q3): 4%.
- EBT Margin (Q3): 8.8%.
- Net Cash Position: 429 million.
Release Date: October 16, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- AQ Group AB (FRA:7AQ0) has maintained profitability every quarter since its foundation in 1994.
- The company has a strong balance sheet with a net cash position, allowing for potential investments and acquisitions.
- AQ Group AB has a diverse exposure to industrial market segments with underlying growth, such as electrification, defense, and data centers.
- The company reported an 8% increase in net sales for the third quarter, reaching 2.1 billion.
- AQ Group AB has a high equity ratio of 67%, significantly above its target of 40%.
Negative Points
- The company's net sales growth of 8% fell short of its 15% target.
- Operating profit for the first nine months decreased by 2% to 624 million.
- There was a negative currency effect of 4% impacting net growth.
- Demand was low in certain segments, such as buses in North America and food packaging equipment.
- The company faces challenges in maintaining inventory turnover, which is crucial for reducing risk.
Q & A Highlights
Q: With the data center order, you mentioned an order book of 50 million and lower inventory turnover. Can you give us some sense of the margin of those products, and are you the only source for your customer?
A: We are currently the only source, but our customer may seek a second source. We have a head start since we've been working on this since 2018. Our customer is not concerned about pricing, only speed in delivery, which suggests healthy margins. However, during ramp-up, there might be extra costs due to non-optimized flows. We believe this is profitable and will continue to grow if successful.