Alfa Laval Corporate AB (ALFA) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

And welcome to Alfa Laval's third quarter earnings call. And Fredrik and I, we're going to take you through the quarter. So let me, as always, start with a couple of introductory comments. Now, with a solid order book and good demand in service and short cycle businesses, sales grew 8% organically in the quarter. It was a stable and clean quarter operationally and earnings increased to a new record level of 3.2 billion SEC in the quarter on the EBITDA level. And then finally, as you noticed, we have adjusted our financial targets to better reflect our financial performance levels. And I will comment on the financial targets a bit later. So let me go to the key figures. Order intake was good in the quarter with a 10% organic decline as expected due to the normalization of demand in cargo pumping applications. In the short cycle business, both order intake and factory utilization is at a high or record high levels in several end markets and product groups. Sales developed well, supported by all three divisions and generated a margin of 18.4%. In all, it was a well-executed quarter with mixed effect contributing to the margin improvement. Moving on to the energy division. The market dynamics are shifting towards a stronger HEVAC heat pump data center growth and moderate expectations on CAPEX projects in the fossil fuel business. Cleantech remains on a positive growth track across a wide range of applications, despite growing concerns regarding the political support for the decarbonisation journey in Europe and in the US. Strong momentum in energy efficiency, growing demand for nuclear and an expected scaling making new technologies financially sustainable is the foundation for future growth in the cleantech sector. The margin was sequentially stable, but note that trans...