Indutrade stock jumps 7% after Q3 earnings beat forecasts, margins hold firm

Investing.com -- Indutrade AB (ST:INDT) shares rose more than 7% on Tuesday after the Swedish industrial group reported third-quarter results that were slightly better than expected, lifted by improved order intake and resilient profitability.

Order intake climbed 3% to SEK 7.74 billion from SEK 7.54 billion a year earlier, driven by higher demand in the medical technology and pharmaceutical segments. Four of the company’s five business areas recorded organic growth during the quarter.

Sales declined 2% to SEK 7.85 billion, about 1% below Kepler Cheuvreux’s estimate but broadly in line with consensus. 

Earnings before interest, tax and amortization fell 3% to SEK 1.14 billion from SEK 1.18 billion, outperforming the firm’s forecast by 2% and consensus by 3.5%.

The EBITA margin reached 14.6%, compared with 14.2% expected. Earnings per share were SEK 1.85, above the analyst estimate of SEK 1.78.

“Our first take on Indutrade’s Q3 report is that it is somewhat better, with EBITA 2% ahead our estimate and 3.5% ahead of consensus,” Kepler Cheuvreux analyst Mats Liss wrote in the note. 

“All in all, slightly better figures from Indutrade are expected to support the consensus estimates 2-3%.”

Operating cash flow totaled SEK 1.02 billion, unchanged from SEK 1.02 billion in the third quarter of 2024. Net debt to EBITA improved to 1.4 times from 1.6 times a year earlier.

The Stockholm-based company expanded its portfolio through acquisitions, completing six transactions in the quarter and 10 since the start of 2025. The additions contributed SEK 1 billion in annualized sales, equivalent to roughly 3% growth on a yearly basis.

By division, Industrial and Engineering delivered an EBITA margin of 14.7%, Infrastructure and Construction 12.4%, Life Science 17.9%, 

Process, Energy and Water 16.0%, and Technology and Systems Solutions 15.9%. All segments except Technology and Systems Solutions performed better than expected, the report said.

Indutrade’s EBIT, including amortization, totaled SEK 974 million, up 2% from Kepler Cheuvreux’s estimate. Pre-tax profit was SEK 875 million, 4.2% above forecast, while net income reached SEK 674 million, compared with the 650 million projected.

Kepler Cheuvreux reiterated its “hold” rating on Indutrade, with a target price of SEK 255. Indutrade’s market capitalization stood at SEK 87 billion, with shares down 13.7% since the beginning of the year and a 52-week range between SEK 331.20 and SEK 215.80.

Founded in 1978 and headquartered in Stockholm, Indutrade acquires and develops niche technology and industrial companies across Europe. 

The group operates more than 200 subsidiaries and focuses on long-term growth through a decentralized management structure.

Kepler Cheuvreux said the firm’s new organizational model, based on industrial verticals instead of geographic divisions, “improves visibility, makes M&A opportunities easier to communicate.”