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BICO Group AB (STO:BICO) shares surged nearly 15% on Tuesday after the company presented its third-quarter results showing improved sales growth and a significant strengthening of its cash position through strategic divestments. The lab automation specialist reported 12% organic growth and a return to positive adjusted EBITDA margin.
Quarterly Performance Highlights
BICO Group reported net sales of SEK 387 million for the third quarter of 2025, representing 5% reported growth and 12% organic growth year-over-year. The 7-percentage point difference was primarily attributed to currency effects from a weaker US dollar against the Swedish krona. The company achieved an adjusted EBITDA of SEK 17 million, corresponding to a 5% margin.
As shown in the following summary of key financial metrics:
The company's sales have recovered from the previous quarter, showing an upward trend after two consecutive quarters of decline. The macroeconomic headwinds that had previously impacted sales levels appear to be easing.
As illustrated in the quarterly sales development chart:
Profitability also improved significantly, with the adjusted EBITDA margin returning to positive territory at 5%, compared to -15% in the previous quarter. This improvement was attributed to continued cost control activities, mainly from centralization of functions and initiatives for operational efficiencies.
The following chart shows the EBITDA trend over the past five quarters:
Segment Performance
BICO Group's performance varied across its two main business segments. The Life Science Solutions segment reported modest growth with net sales of SEK 263 million and organic growth of 4% year-over-year. This segment achieved an adjusted EBITDA of SEK 19 million, corresponding to a 7% margin.
The segment performance is detailed in the following chart:
The Lab Automation segment was the standout performer with net sales of SEK 124 million and impressive organic growth of 35% year-over-year. This segment generated an adjusted EBITDA of SEK 10 million, representing an 8% margin.
The strong performance of the Lab Automation segment is illustrated here:
A key highlight for the Lab Automation segment was Biosero securing large orders from a global pharmaceutical company worth USD 15.2 million as part of a master framework agreement. The company has implemented transformative actions to scale up Biosero, including appointing a new Managing Director and enhancing operational capabilities.
Strategic Initiatives & Portfolio Optimization
BICO Group significantly strengthened its cash position through the divestment of MatTek and Visikol, which generated net proceeds of SEK 740 million. This strategic move aligns with the company's updated strategy focusing on lab automation and selected workflows. Sartorius acquired 100% of the shares in both companies at a 2024 sales multiple of 3.7x and adjusted EBITDA multiple of 15.3x.
The company's cash reserves reached SEK 1,241 million by the end of Q3 2025, providing a solid financial foundation for future growth initiatives. BICO also executed a bond buy-back on August 18, 2025, to a nominal amount of SEK 98 million.
However, the company recorded impairments of SEK 1,036 million in Discover ECHO and Biosero, which are non-cash flow affecting one-off items impacting EBIT. Despite these impairments, management emphasized strong underlying demand for Biosero's integrated lab automation solutions and a market recovery in the US academic segment for ECHO.
Product Innovation
BICO Group continues to drive growth through product innovation and synergies across its portfolio. The company introduced the I.DOT LT, a new addition to its I.DOT series, optimized for automated low-volume liquid dispensing.
As shown in the product image below:
The company is also leveraging commercial synergies within the group, as demonstrated by the integration of TurnStation by QINSTRUMENTS with Biosero's Green Button Go® software. This integration optimizes the workflow for microplate handling and is purpose-built for seamless lab automation.
The synergistic product integration is illustrated here:
Forward-Looking Statements
Looking ahead, BICO Group anticipates long-term growth of around 10% CAGR, which aligns with its financial targets. The company reflected on the first year of its "BICO 2.0" strategy, highlighting progress in streamlining its portfolio, strengthening its commercial engine, investing in people and culture, and delivering operational excellence.
CEO Maria Forss emphasized the company's mission to "enable and automate the life science lab of the future" and position BICO as the "first-choice lab automation partner and provider of selected workflows to pharma and biotech."
The key takeaways from the quarter are summarized in the following slide:
Following the earnings presentation, BICO Group's stock price increased by 14.95% to SEK 24.14, moving closer to its 52-week high of SEK 46.98. The market's positive reaction reflects investor confidence in the company's strategic direction and improved financial performance.
Full presentation:
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