#Sweden #Q3 2025 #Lund #Alfa Laval #financial report

Alfa Laval AB Q3 2025 Interim Report Overview

Key Highlights

In its interim report for the third quarter of 2025, Alfa Laval AB (publ) presented a mixed bag of results. The company reported an order intake of SEK 16.6 billion, representing a reduction of 13% compared to the previous year, with organic orders dropping by 10%. Conversely, net sales increased by 6%, reaching SEK 17.2 billion, buoyed by an 8% organic growth component.

The adjusted EBITA also showcased a promising uptrend, increasing 14% to SEK 3.2 billion, resulting in an EBITA margin of 18.4%. However, cash flow from operating activities saw a decline, amounting to SEK 2.2 billion compared to SEK 3.7 billion from the previous reporting period. The company's earnings per share also rose, reported at SEK 5.53, up from SEK 4.77 in Q3 2024.

Financial Summary

Third Quarter Results

• - Order Intake: SEK 16,555 million (down from SEK 18,927 million)
• - Net Sales: SEK 17,244 million (up from SEK 16,208 million)
• - Adjusted EBITA: SEK 3,180 million (up from SEK 2,800 million)
• - Adjusted EBITA Margin: 18.4% (from 17.3%)
• - Net Income: SEK 2,303 million (compared to SEK 1,983 million)
• - Cash Flow from Operating Activities: SEK 2,206 million (down from SEK 3,924 million)

Year-to-Date Overview (First Nine Months)

• - Order Intake: SEK 49,661 million (down from SEK 56,116 million)
• - Net Sales: SEK 50,528 million (up from SEK 48,643 million)
• - Adjusted EBITA: SEK 9,097 million (up from SEK 8,166 million)
• - Adjusted EBITA Margin: 18.0% (up from 16.8%)
• - Net Income: SEK 6,331 million (up from SEK 5,369 million)
• - Return on capital employed: 24.2% (up from 22.8%)

Business Developments

A significant move this quarter was the successful acquisition of the cryogenic business from the Fives group, a development that aligns well with Alfa Laval's strategic focus on enhancing its offering in key markets.

The company has also updated its financial targets, now aiming for a global sales growth target of 7% and an adjusted EBITA target of 17% over the business cycle. This is indicative of Alfa Laval’s commitment to striving for a robust financial future despite the quarterly decline in order intake.

Outlook

Reflecting on the current market landscape, Tom Erixon, President and CEO of Alfa Laval, provided insights into the company’s outlook for the fourth quarter. He anticipates demand to remain consistent with that of the third quarter. The previous forecast expected a moderate increase in demand during Q3; however, the results demonstrated dynamics that may require recalibration of expectations going forward.

Conclusion

The Q3 2025 interim report from Alfa Laval illustrates both challenges and victories in the company's performance metrics. Despite the decline in order intake, the increase in net sales and adjusted EBITA paints a complex portrait of resilience and potential growth. Investors and stakeholders will be keenly observing how Alfa Laval positions itself in the upcoming quarters as it aims to navigate through these fluctuations while adhering to its ambitious financial targets.