Third quarter, July-September 2025 in brief
- Net sales increased by 8% to SEK 2,114 m (1,949)
- Operating profit (EBIT) increased by 2% to SEK 191 m (188)
- Profit before tax (EBT) increased by 5% to SEK 187 m (177)
- Profit margin before tax (EBT %) was 8.8% (9.1)
- Profit after tax amounted to SEK 154 m (146)
- Cash flow from operating activities amounted to SEK 322 m (363)
- Earnings per share before dilution amounted to SEK 1.67 (1.60)
Nine months, January-September 2025 in brief
- Net sales increased by 5% to SEK 6,748 m (6,428)
- Operating profit (EBIT) decreased by 2% to SEK 624 m (633)
- Profit before tax (EBT) increased by 1% to SEK 619 m (616)
- Profit margin before tax (EBT %) was 9.2% (9.6)
- Profit after tax amounted to SEK 509 m (511)
- Cash flow from operating activities amounted to SEK 799 m (908)
- Earnings per share before dilution amounted to SEK 5.54 (5.58)
- Equity ratio was 67% (65)
A word from the CEO
Data center, defense and electrification
The third quarter is, as usual, AQ's seasonally worst quarter. We are not satisfied with our organic growth, although we are helped by strong demand from customers in defense, electrification and data centers. We need to sell more to new and existing customers and that is where our main operational focus lies along with continuing to improve our delivery precision. At the same time, we continue to work on buying companies at the right price.
Acquisitions
Our growth through acquisitions during the quarter was 7%. Our acquired companies have the largest turnover in defense technology, electrification and railways. The work to integrate mdexx and Riedel is progressing according to plan. During the quarter, we reduced personnel costs in mdexx by 10% and at the same time reduced material and financing costs. In September, after these measures, we are at break-even at EBT level. Now the focus is on producing transformers and inductors for data centers in mdexx's factory in Trutnov to increase capacity utilization and profitability.
Market and investments
In the quarter, our sales increased organically by 5% compared to the same quarter last year. This is below our target. Our sales increased to electrification and defense in Europe and to data centers in the US. Sales decreased to buses in the US and Mexico, packaging machines for the food industry and transformers for ships in Europe.
During the quarter, we received orders for medium-voltage transformers for data centers of EUR 7.5 m. In total, we now have an order book of EUR 15 m for a data center. We will therefore make investments in production and testing equipment in our factories in the Czech Republic, Hungary, China, the US and Bulgaria. Deliveries are due to be completed by June 2026. We expect more orders and projects in this segment in 2026 and beyond.
During the third quarter, we moved our factory for inductive components in Tallinn, Estonia to new, larger premises to meet the increasing demand for frequency converters. This factory now gets a third of its power supply from solar panels on the roof.
During the quarter, we have increased our deliveries to defense customers in England, Sweden, Poland and the US. Demand remains strong and we expect demand to increase further.
Cash flow, balance sheet and margin
Our cash flow from operating activities was SEK 322 m in the quarter. We have a net cash position of SEK 429 m, which means that we have plenty of capital to use for continued growth with our customers and to carry out value-creating acquisitions. Our profit margin before tax (EBT) in the quarter was 8.8%. Our EBT margin in the quarter was negatively impacted by 0.7 percentage points by the acquisition of mdexx.
AQ at the heart of data centers
It is exciting to be CEO of AQ. Who would have thought that we would be supplying critical components to large data centers. If things go as we and our customers want in this area, this could be a significant part of AQ's turnover for several years to come. But as always, we are dependent on our fast and committed employees who see these opportunities and seize them when they arise. Because new orders never fall from the sky. This is no coincidence. At AQ, we have the best employees, and that is why we succeed now and in the future. I'm incredibly grateful for that.
James Ahrgren
CEO
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This disclosure contains information that AQ Group is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was released for publication by James Ahrgren on 16-10-2025 08:00 CEST.
For further information, please contact:
James Ahrgren, CEO and IR, telephone +46 76 052 58 88 or
CFO, Christina Hegg, telephone +46 70 318 92 48
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AQ is a global manufacturer of components and systems to demanding industrial customers and is listed on Nasdaq Stockholm's main market. The Group consists mainly of operating companies each of which develop their special skills and in cooperation with other companies, striving to provide cost effective solutions in close cooperation with the customer.
The Group headquarter is in Västerås, Sweden. AQ has 8,000 employees in Bulgaria, Poland, Lithuania, Sweden, China, Estonia, Hungary, Mexico, Finland, India, Canada, USA, Germany, Italy, Brazil, Great Britain and Czech Republic. In 2024 AQ had net sales of SEK 9 billion, and the Group has since its start in 1994 shown profit every quarter.
www.aqgroup.com
