Q3 2025 – Increased demand

Demand strengthened during the third quarter, resulting in an increase in sales of 5 percent, with organic growth amounting to 6 percent. Acquisitions made a positive contribution of 2 percent, while the effects of currency movements had a negative impact of 3 percent.

Incoming orders also had positive development, increasing by 1 percent compared to the same period of the previous year. Incoming orders were 5 percent lower than sales, which is normal during the summer months.

Operating profit (EBITA) increased by 4 percent, driven by higher sales and an improved gross margin. The EBITA margin was 16.6 percent (16.7).

Development in the regions

Growth has generally been strong, despite the negative effects of currency movements. Almost two thirds of the operations showed growth during the quarter, with particularly strong development among the Swedish and Finnish companies.

Region Sweden reported strong demand and an increase in sales of just over 5 percent. Organic growth amounted to 8 percent, while currency movements had a negative impact of just over 2 percent. Incoming orders increased by 5 percent but were 4 percent lower than sales. Telfa, ATC Tape Converting, Nexa Trading and Batteripoolen had the strongest growth during the quarter. The Group’s largest company, OEM Automatic, increased its sales by 9 percent.

Region Finland, the Baltic states and China have experienced a gradual increase in demand during the year, with an increase in sales of 4 percent during the quarter. Organic growth amounted to just under 7 percent, while the effects of currency movements had a negative impact of 3 percent. Incoming orders increased by 6 percent compared to the previous year but were 7 percent lower than sales. OEM Electronics and Akkupojat in Finland, along with OEM Automatic in China, showed the strongest growth.

Region Denmark, Norway, the British Isles and East Central Europe showed variable demand between the units. Sales rose by 4 percent, with acquisitions making a positive contribution of just under 8 percent. Organic growth was negative 1 percent and the effects of currency movements had a negative impact of just over 3 percent. Incoming orders fell by 10 percent and were 10 percent lower than sales. The OEM Automatic companies in Hungary, the Czech Republic and Poland showed the strongest development during the quarter.

Property project for Elektro Elco

During the quarter, OEM began construction of a new property in Jönköping to enable continued expansion of Elektro Elco. The property is an important investment for the future and will provide the company and the Hide-a-lite brand with a workplace that reflects its culture and creativity

Market conditions

Demand has improved quarter on quarter during the year, despite the industrial economy generally being strained in many markets. In the Swedish market, we can see a downturn within a number of customer segments, although this has been offset by increased demand within other sectors. The recovery in Finland following a prolonged period of weak demand is expected to continue. The variation in demand in other markets is greater, and we need to be more creative in order to increase both sales and earnings.

The ambition is to continue to grow, while at the same time maintaining strong profitability which is firmly rooted deep within the organisation. With the Group’s stable financial position and the clear driving force to create growth, I am convinced that we will see further positive development.