Vestum AB (VESTUM) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome to the Vestum Q3 2025 report presentation. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. Now I will hand the conference over to the speakers. CEO Simon Gothberg, CFO Olaf Andersen, please go ahead. Hello, everyone, and welcome to our presentation of Vestum's Interim Report for Q3 2025. My name is Simon Gothberg, CEO of Vestum, and together with me, I also have Olof Andersson, our CFO. Okay, let's have a look at some highlights from the quarter. We continue to sequentially improve profitability with an adjusted EBITDA margin of 11%. Overall, we experienced stable volumes in the quarter with some uptick towards the end of the quarter, with September being the strongest month. That said, we're facing some tough comparable figures from Q3 2024, as that was the strongest quarter last year. This led organic growth to drop somewhat to negative 2% in Q3 2025. We have continued to invest in our leading product companies, which is reflected in increased CapEx. These investments primarily relate to geographic expansion in the UK within the flow technology segment. And as volumes grew at the end of the quarter, we also saw an uptick in working capital. As a result, cash flow decreased during the quarter, but for sound reasons. Moving on to the segments, starting with the flow technology segments, sales grew 10%, mainly driven by acquisitions. Overall, we saw a stable performance across all markets, but with some variations. As in the first half of the year, we're experiencing solid demand and profitability in Scandinavia. In the UK, the market has been preparing for the new investment plan AMP8. unde...