Indutrade AB (publ)

Q3 net sales increased 13%, with 8% from acquisitions and 5% organic growth; organic order intake growth was 6%, and book-to-bill was 101%. EBITA increased 19% and EBITA margin improved to 15.3% from 14.6% last year. Year to date, order intake is up 10% and sales 8%; rolling 12-month EBITA margin is 14.2%, above the financial target. Operating cash flow rose 20% to SEK 1.2 billion, with rolling 12-month operating cash flow at SEK 4.3 billion. EPS increased 19% in the quarter and 13% year to date. Management did not provide explicit quarterly or full-year numerical guidance, but said backlog is larger, acquisition momentum is good, and the company is well positioned to maintain a strong acquisition pace going forward.

Bo Annvik described the quarter as strong, with broad demand improvement, organic growth across all five business areas, and a slightly positive book-to-bill despite Q3 typically being weaker. He emphasized that margin gains came from operational leverage, a strong gross margin, and margin-accretive acquisitions, while also noting that some of the backlog now contains longer-lead-time energy-related orders. His tone was constructive but measured: optimistic on Life Science, acquisitions, and backlog, while acknowledging uncertainty and some unevenness in project-heavy businesses.

Jan Öhman focused on the financial momentum: year-to-date order intake up 10%, sales up 8%, EBITA margin at 14.5% year to date and 14.2% rolling 12 months, both above target. He noted return on capital employed improved to 19% from 18% in 2025, operating cash flow was SEK 1.2 billion in the quarter, and net debt declined versus Q2 but rose versus last year due to acquisitions; leverage remained at 1.6x net debt/EBITA and 50% net debt/equity. He also cited a 22% quarterly tax rate, 23% rolling 12 months, and said finance net increased SEK 23 million quarter on quarter because of the higher acquisition pace.

Analysts focused on the mix and timing of the order book, Life Science momentum, and weaker profitability in Process, Energy & Water and Technology & Systems Solutions. Management said the backlog has a good mix, though some energy orders will be delivered later, and that this should not materially affect organic growth. On Life Science, Bo said momentum remains strong and Q3 was more mixed between med tech and pharma rather than weak. On PEW and TSS, he said margins should improve sequentially, but TSS remains a multi-quarter turnaround as the U.K. businesses shift away from hydrogen and rebuild their customer base.