Cost discipline and continued efficiency improvements in a weaker market
The third quarter in summary
• Net Sales decreased to SEK 381.3 million (407.4)
• Operating profit increased to SEK -15.1 million (-18.6)
• Earnings before tax (EBT) increased to SEK -27.8 million (-31.0)
• Net income for the period increased to SEK -29.8 million (-34.1)
• Cash flow from operating activities amounted to SEK 1.5 million (8.2)
The first nine months in summary
• Net Sales decreased to SEK 1,381.4 million (1,510.2)
• Operating profit increased to SEK 2.3 million (-18.5)
• Earnings before tax (EBT) increased to SEK -35.5 million (-54.2)
• Net income for the period increased to SEK -42.0 million (-59.5)
• Cash flow from operating activities amounted to SEK 31.6 million (62.0)
Comments from the Group President and CEO, Roger Berggren;
The third quarter was characterized by a continued weak market, particularly in heavy commercial vehicles. Net sales decreased to SEK 381.3 million (407.4), but despite this, operating profit developed better than last year and improved to SEK -15.1 million (-18.6). This shows that the efficiency measures implemented are having an effect and strengthening our resilience, even in a market with lower volumes and considerable uncertainty.
During the quarter, uncertainty increased further as a result of unclear tariff conditions for the EU and South America, as well as a weakened global economy. This has led to lower order intake, particularly in heavy commercial vehicles, which is having a negative impact on sales. At the same time, we continue to grow in the defence industry, and certain industrial markets remain stable and are helping to mitigate the decline in other parts of the business.
Against this backdrop, we have intensified our efforts to adapt our cost structure to a market situation that remains uncertain. The Action 100 profit improvement program has largely been implemented, but we are continuing to implement efficiency improvements in staffing, production, and purchasing to ensure profitability also at lower volumes. We are already seeing the effects in the form of better cost control, improved productivity, and increased flexibility in the organization.
Our focus is on maintaining financial stability, securing cash flow and continuing to develop customer relationships in our most stable segments. LEAX is now on a more stable ground than before, with a clear structure, lower fixed costs and stronger operational discipline.
We believe that the market will remain challenging in early 2026, particularly in the heavy commercial vehicle segment, but with the structural changes and cost adjustments that are being implemented, LEAX is well positioned for recovery when the economy turns around.
I would like to express my sincere thanks to all employees for your commitment and responsibility. Through your work, we are creating the conditions for a stronger and more sustainable LEAX.
Roger Berggren, Group President and CEO
Telephone: +46 (0)70 655 99 71
E-mail: roger.berggren@leax.com
Jonas Lundberg, CFO
Telefon: +46 (0)70 453 58 14
E-mail: jonas.lundberg@leax.com
About LEAX
LEAX Group AB (publ) is the parent company of a group ("LEAX Group") with about 1,000 employees. LEAX has operations in Köping, Falun and Falköping in Sweden, Riga and Rezekne in Latvia, Curitiba in Brazil, Detmold in Germany and Mezökövesd in Hungary. The Group designs, develops and industrializes advanced manufacturing solutions and superior products for global mobility and industrial markets. The Group had sales of SEK 2.0 billion in 2024.