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Investing.com -- Alfa Laval AB on Tuesday reported third-quarter 2025 results that exceeded analyst expectations, with adjusted earnings beating consensus estimates by 4-6% despite integration costs in its Energy division.
The Swedish industrial company posted orders of SEK16.6 billion, sales of SEK17.2 billion, adjusted EBITA of SEK3,180 million, and earnings per share of SEK5.53 for the quarter. Compared to analyst consensus, sales beat by 3%, adjusted EBITA by 4%, and EPS by 6%, while orders were in line with expectations.
Order intake declined 10% organically year-over-year, slightly worse than the consensus forecast of a 9% drop. The book-to-bill ratio was 0.96x, below the expected 0.99x. The company reported good demand conditions in the U.S. and China markets.
Foreign exchange had a negative impact of 5.5% on orders and 5.7% on revenues during the quarter.
Revenue grew 6% compared to the same period last year, exceeding forecasts by 3%, driven primarily by strong performance in the Food & Water division, which beat expectations by 9%.
The adjusted EBITA margin improved to 18.4% from 17.3% in Q3 2024, surpassing the consensus estimate of 18.2%. This improvement was attributed to favorable product mix, operational leverage, and effective cost control.
By division, Energy reported orders up 7% year-over-year and revenues up 9%, with strong performance in HVAC, heat pumps, and refrigeration. However, the division’s operating profit missed expectations by 15% due to acquisition costs related to FiveCryogenics.
The Food & Water division saw orders increase 6% organically year-over-year, beating forecasts by 2%, with most markets showing positive development. Revenues rose 8% organically, exceeding expectations by 9%, while operating profit beat estimates by 14%.
The Marine division experienced a 34% year-over-year decline in orders as demand normalized, with revenues growing 14% organically, in line with expectations.
Looking ahead, Alfa Laval expects demand in the fourth quarter to remain at similar levels to the third quarter. Current analyst consensus projects Q4 2025 orders of SEK17.25 billion, representing 4% quarter-over-quarter growth.
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