Boreo Plc, INTERIM REPORT JAN. 1 TO SEP. 30, 2025
October 29, 2025, at 9:00 EET
Continued strong growth in sales
June-September 2025
- Net sales increased by 16% to EUR 32.8 million (2024: 28.4). Organic growth was 10%.
- Operational EBIT decreased by 6% to EUR 1.7 million (2024: 1.8), representing 5.1% of net sales (2024: 6.2%).
- EBIT declined to EUR 0.6 million (2024: 1.1).
- Net cash flow from operating activities was EUR 2.2 million (2024: 0.7).
- Earnings per share decreased to EUR -0.16 (2024: -0.07).
- On 1 August 2025, Boreo announced that it had completed the acquisition of Elfa Distrelec's sales operations in Finland, Latvia, Estonia and Lithuania from RS Group plc.
January-September 2025
- Net sales increased by 13% to EUR 107.0 million (2024: 94.8). Organic growth was 10%.
- Operational EBIT increased by 10% to EUR 5.2 million (2024: 4.7), representing 4.8% of net sales (2024: 5.0%).
- EBIT rose to EUR 4.6 million (2024: 2.4).
- Net cash flow from operating activities was EUR 1.9 million (2024: 4.9).
- Earnings per share increased significantly to EUR 0.37 (2024: -0.43).
Group's key figures
EUR million | Q3 2025 | Q3 2024 | Change | Q1-Q3 2025 | Q1-Q3 2024 | Change | 2024 |
Net sales | 32.8 | 28.4 | 16 % | 107.0 | 94.8 | 13 % | 134.0 |
Operational EBIT | 1.7 | 1.8 | -6 % | 5.2 | 4.7 | 10 % | 6.8 |
relative to the net sales % | 5.1 % | 6.2 % | - | 4.8 % | 5.0 % | - | 5.1 % |
EBIT | 0.6 | 1.1 | -48 % | 4.6 | 2.4 | 94 % | 4.1 |
Cash conversion, % | 151 % | 24 % | - | 41 % | 106 % | - | 180 % |
Net debt / EBITDA 1) | 2.4 | 3.3 | - | 2.4 | 3.3 | - | 2.8 |
Return on Capital Employed (ROCE %) 2) | 8.2% | 7.9% | - | 8.2% | 7.9% | - | 7.9% |
EPS, EUR 3) | -0.16 | -0.07 | - | 0.37 | -0.43 | - | -0.30 |
1) Net debt relative to operational EBITDA of the previous 12 months. Calculated in accordance with the calculation principles established with financiers. The formula for the calculation is presented later in this report.
2) Calculated on a rolling 12-month basis (R12).
3) Starting from 2022, the effect of the interest on the hybrid bond recorded in equity, adjusted by the tax effect, has been considered in the calculation of earnings per share. In Q3 2025, this net effect was EUR 0.19 per share, in Q3 2024 EUR 0.19 per share, in Q1-Q3 2025 EUR 0.53 per share, and in Q1-Q3 2024 EUR 0.50 per share.
Q3/2025 - CEO Kari Nerg:
Strong growth in net sales and cash flow, operational EBIT slightly below the previous year
Net sales continued to grow in the third quarter for the fourth consecutive quarter, increasing by 16%. Organic growth was 10%, and the Spetselektroodi and YE RS acquisitions contributed 6% to net sales growth. Operational EBIT was slightly below the level of the previous year, mainly due to the integration phase of the YE RS business and the higher positive impact from the release of contingent consideration liabilities related to acquisitions in the comparison period.
The company's current profitability remains moderate compared to the potential of our portfolio but has improved over the past year. During the first nine months of 2025, net sales increased by 13% and operational EBIT by 10%, indicating a positive trend in performance development.
Working capital decreased as expected in the third quarter, and cash conversion was strong at 151%. Net debt relative to operational EBITDA of the previous 12 months increased slightly from the previous quarter and stood at 2.4.
Order books strengthened, and signs of improving demand in the industrial sector have increased
Order books strengthened from the previous quarter, and we are seeing signs of a pickup in industrial demand. The short-term demand outlook for our companies serving the industrial sector has improved slightly, while the outlook for companies operating in the construction industry has remained subdued. A special mention goes to Milcon, serving the defence industry, which has shown strong development and significantly improved growth prospects for the future.
Focus on developing existing companies and pursuing acquisitions
In the coming quarters, we will focus on developing our existing companies and aim to acquire businesses that meet our ownership criteria. Over the past year, we have invested in the renewal of enterprise resource planning systems (ERP) in four companies, and three additional system projects are currently underway with the goal of modernizing and streamlining operations. These future growth-enabling projects will increase costs during the next few quarters but will improve efficiency and reduce fixed costs in the coming years. The convertible hybrid bond issued during the summer, together with the strengthened profitability during 2025, has improved the company's financial position and enables continued progress on the acquisition path of our strategy implementation. We believe we are on the right track toward achieving our long-term goals, and that the Group is well positioned for significant earnings growth when market conditions improve.
Financial guidance and business model
Boreo's focus is on earnings growth with attractive return on capital. The company's long-term strategic financial targets are:
- Minimum 15% average annual operational EBIT growth
- Minimum 15% Return on Capital Employed (ROCE)
- Net debt to operational EBITDA between 2 and 3 (including acquired businesses as if they had been held for 12 months at the reporting date)
Boreo's dividend policy is to pay an annually increasing dividend per share, considering capital allocation priorities.
The above-mentioned strategic financial objectives serve as the company's financial guidelines. In line with its guidance policy, the company does not give separate short-term financial guidance.
Briefing for investors. analysts and media
A webcast where CEO Kari Nerg and CFO Jesse Petäjä present the Interim report will be held today at 11:00 am EET. The presentation is in English and questions can be asked after the presentation. The presentation material is available before the webcast on Boreo's website: www.boreo.com/investors.
You can watch the webcast at: https://boreo.events.inderes.com/q3-2025. The event will be recorded and the recording will be available after the event at: www.boreo.com/investors.
Vantaa, October 29, 2025
BOREO PLC
Board of Directors
Additional information:
Kari Nerg
CEO
tel +358 44 341 8514
Jesse Petäjä
CFO
tel +358 40 706 9450
Distribution:
NASDAQ Helsinki Ltd
Financial Supervisory Authority
Principal media
www.boreo.com
Boreo in brief:
Boreo is a company listed on Nasdaq Helsinki that creates value by owning. acquiring and developing small and medium-sized companies in the long-term. Boreo's business operations are organized into two business areas: Electronics and Technical Trade.
Boreo's primary objective is sustainable long-term profit generation. This is achieved with a business model that is based on the acquisition and ownership of great entrepreneurial companies with the ability to generate sustainable long-term earnings growth and strong cash flows. The profits generated by the portfolio of companies are re-invested back to operations or to acquisitions with attractive expected returns on capital. The decentralized operating structure promoting a culture of ownership and release of entrepreneurial energy is a core pillar of the company's business concept and sustainable earnings growth is ensured through the support and coaching of companies and the personnel.
The Group's net sales in 2024 were EUR 134 million and it employs over 300 people in seven countries. The company's headquarter is in Vantaa.