Net sales in the quarter grew organically by 6 percent to SEK 223 (211) million and adjusted EBITA increased by 17 percent to SEK 14 (12) million. The improved results were driven by increased net sales and an improved gross margin. A completed real estate transaction strengthens the Group's financial position. The pace of change remains high and a number of major projects are being carried out to drive results and cash flow.
Q3 2025
- Net sales amounted to SEK 223 (211) million, an increase of 6 percent compared with the same period in 2024, of which organic growth accounted for 6 percent
- Adjusted EBITA amounted to SEK 14 (12) million, corresponding to a margin of 6 (6) percent
- EBITA amounted to SEK 20 (11) million, corresponding to a margin of 9 (5) percent. EBITA was positively affected by a capital gain from a real estate sale of SEK 7 million
- Operating profit/loss (EBIT) amounted to SEK 13 (5) million
- Basic and diluted earnings per share amounted to SEK 0.21 (-0.09)
- Cash flow from operating activities was SEK -9 (1) million, and excluding a tax deferral repayment, cash flow was SEK 4 (2) million.
The period January-September 2025
- Net sales amounted to SEK 695 (693) million, an increase of 3 percent compared with the same period in 2024, of which organic growth accounted for 0.3 percent
- Adjusted EBITA amounted to SEK 39 (35) million, corresponding to a margin of 6 (5) percent
- EBITA amounted to SEK 41 (41) million, corresponding to a margin of 6 (6) percent. EBITA was positively affected by a capital gain from a real estate sale of SEK 7 million
- Operating profit/loss (EBIT) amounted to SEK 22 (-13) million. The comparative period was affected by impairment of goodwill of SEK 35 million
- Basic and diluted earnings per share amounted to SEK 0.09 (-0.86)
- Cash flow from operating activities was SEK 0 (42) million, and excluding a tax deferral repayment, cash flow was SEK 29 (47) million.
Significant events during the reporting period
- On August 18, Per Bodén took up the role of CFO and Keivan Cherloo took up the role of COO at Seafire.
- On September 29, Seafire's subsidiary Pexymek divested its wholly-owned real estate company Maströret Fastighets AB. Read more on page 8.
CEO Comments
Net sales in the third quarter amounted to SEK 223 (211) million, corresponding to organic growth of 6 percent. Adjusted EBITA increased by 17 percent to SEK 14 (12) million. The improved operating profit was driven by increased sales combined with a stronger gross margin of 45 percent (44 percent). Cash flow was satisfactory, considering seasonal patterns and high sales in September.
Previous stability turned into growth in Q3
Seafire showed growth (+6 percent) for the second quarter in a row. Seven out of twelve subsidiaries grew during the quarter. Growth was mainly driven by Nordbutiker and DOFAB, which benefitted from a stronger consumer market and the fact that activity levels are now being converted into sales. Åkerstedts also reported a strong quarter due to several larger projects and order intake over the past 12 months is at the highest level ever. Kenpo Sandwich continued to perform weakly owing to a sluggish market for truck bodybuilders. However, our assessment is that the end market has bottomed out and we are seeing some signs of recovery.
Increased profitability
Adjusted EBITA in the quarter amounted to SEK 14 (12) million, corresponding to a margin of 6 percent (5 percent). It is gratifying to see that the gross margin increased in the quarter although mix effects had a negative impact, seven out of twelve subsidiaries improved their margins. The largest improvement in earnings was seen in Nordbutiker where active work on procurement and pricing is producing results, and in SolidEngineer where a new organization, cost control and a strong underlying market continue to have a positive effect. DOFAB also reported a good earnings trend.
Stable cash flow
Cash flow from operating activities excluding tax deferral repayments was SEK 4 (2) million. The efforts to optimize working capital are delivering results, however, the quarter was affected by very strong sales in September and thus high trade receivables. During the quarter, the divestment of Pexymek's real estate company was completed which provided the Seafire Group with net proceeds of about SEK 36 million and with a net effect on the Group's debt/equity ratio (ND/EBITDA) of 0.2x, taking into account the increased lease liability.
Continued high pace of change
The new CFO and COO have joined the Group with a positive start, and with our new business-focused governance model, there are opportunities to further support business development in the subsidiaries. The pace of change is high with many transformation projects with expected positive effects on the Group's long-term profitability level. Earnings and cash flow are being prioritized, rather than sales. Here are a few examples of how this is being put into practice.
Nordbutiker is consolidating stock to one location and in connection with this is closing a significant part of its business which has very weak profitability. The change is expected to lead to significantly lower tied-up capital, lower complexity and higher earnings, although with lower sales.
Borö-Pannan has decided to consolidate all Swedish production to Kalix. This reduces the fixed cost base and increases the potential for ongoing productivity improvements. The lease for the facility in Motala has been terminated and relocation will take place in H1 2026. Contract manufacturing will also be discontinued in connection with this decision and there are plans to sell the company's relatively small-scale, Trinette/minikitchen business.
Bara Mineraler signed a business transfer agreement in October and will thus exit the brick beam market, which is a very limited segment for the company. Equipment and inventories will be sold and premises will be leased to the buyer. The business has previously been unprofitable.
The pace of change is also high in other subsidiaries. Four new subsidiary CEOs have been appointed during the year. Focus on working capital and gross margins continues, and on growth initiatives in selected companies. As a result of the change management work, non-recurring restructuring costs will arise in the coming quarters, most of which expected not to affect cash flow.
Somewhat positive outlook and renewed focus on acquisitions
Seafire has showed increased stability in the past year. Markets remain cautious, and we do not see a clear growth pattern, although there are positive signals, which have translated into two quarters of some growth. Outlook for Q4 is stability rather than strong growth. In the event of an increased level of demand, we estimate that the Group has significant operational leverage. The above-mentioned transformation projects are important for increasing focus and driving results where we want to grow. With stable markets, strong cash flow and lower debt, as well as clarity regarding priorities and a new team, acquisitions are also something we are now giving higher priority to.
I want to thank all employees in the Group for your hard work and you, the shareholders, for your continued trust.
Daniel Repfennig
President and CEO
For more information, please contact
Daniel Repfennig, CEO, +46 722-00 89 41, daniel.repfennig@seafireab.com
Per Bodén CFO, +46 70-236 5472, per.boden@seafireab.com
About Seafire
Seafire is a company group consisting of the business segments Industrial components and Products, which acquires and develops companies in Sweden. The group was founded in 2016 and focuses on acquiring profitable companies with development potential. Seafire consists of 12 companies with sales of about one billion SEK. The company's shares are listed on Nasdaq Stockholm. For more information, please visit www.seafireab.com/en.