Microsoft sued by Australia competition regulator over Copilot, 365 pricing
Nederman Holding AB, with a market capitalization of $605.81 million, reported its Q3 2025 earnings, highlighting a stable performance despite a challenging market environment. The company achieved an earnings per share (EPS) of SEK 2.27, an increase from SEK 2.00 in the same quarter last year. The stock experienced a modest increase of 0.37% in pre-market trading, though InvestingPro data shows it’s trading near its 52-week low after a significant YTD decline of 25.42%.
Key Takeaways
- Nederman’s EPS rose to SEK 2.27, up from SEK 2.00 in Q3 2024.
- Total order intake fell to SEK 1.25 billion, impacted by currency fluctuations.
- The EBITDA margin improved slightly to 11.6%.
- The company launched several new products, including the Nederman Save system.
Company Performance
Nederman Holding AB demonstrated resilience in Q3 2025, navigating a turbulent market with a modest increase in adjusted EBITDA to SEK 166 million. Despite a decline in total order intake to SEK 1.25 billion, the company managed to increase its EBITDA margin to 11.6%. The focus on operational efficiency and innovation, particularly in energy-efficient solutions, helped maintain its competitive edge.
Financial Highlights
- Revenue: SEK 1.25 billion (down from SEK 1.44 billion YoY)
- Earnings per share: SEK 2.27 (up from SEK 2.00 YoY)
- Adjusted EBITDA: SEK 166 million (up SEK 5 million YoY)
- EBITDA Margin: 11.6% (up from 11.4%)
- Cash Flow from Operations: SEK 123 million
Outlook & Guidance
Nederman remains cautiously optimistic about Q4 2025, with order intake showing significant improvement in September. According to InvestingPro analysis, the company maintains strong financial health with liquid assets exceeding short-term obligations. The company continues to invest in operational efficiency and expand its market share in sectors like textile and fiber. The year-end report is scheduled for February 12, 2026. Discover comprehensive insights and Fair Value estimates for Nederman and 1,400+ other stocks with an InvestingPro subscription.
Executive Commentary
CEO Sven Kristensson noted, "We had a solid performance in a very turbulent market environment," underscoring the company’s resilience. He emphasized the importance of Nederman’s growing service business and digital solutions in maintaining its market position. Kristensson also highlighted the company’s role in addressing climate change, stating, "Nederman has a key role to play and a strong potential for continued growth."
Risks and Challenges
- Currency Fluctuations: A 6% negative impact due to a weakening U.S. dollar.
- Market Volatility: Uncertainty in major investment projects could affect future order intake.
- Supply Chain Optimization: Ongoing reviews and adjustments may pose short-term disruptions.
- Competitive Pressure: Maintaining market share in a rapidly evolving industry.
- Economic Conditions: Broader macroeconomic pressures could impact demand.
Nederman’s Q3 2025 performance reflects its strategic focus on innovation and efficiency, positioning it well for future growth despite external challenges. The company maintains profitability with a gross margin of 39.64% and demonstrates financial stability through its healthy balance sheet. Access detailed financial analysis, Fair Value estimates, and exclusive ProTips for Nederman and other industrial companies through InvestingPro’s comprehensive research platform.
Full transcript - Nederman Holding AB (NMAN) Q3 2025:
Conference Operator: Welcome to the Nederman Holding AB Q3 2025 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing the pound key 5 on their telephone keypad. Now, I will hand the conference over to speakers CEO Sven Kristensson and CFO Matthew Cusick. Please go ahead.
Sven Kristensson, CEO, Nederman Holding AB: Good morning everyone, and welcome to the Nederman Interim Report Q3 2025. If we start with some short summaries, we can say that we had good profitability and we continued to invest in our business. We say that we had a solid performance in a very turbulent market environment. Some of the key things during Q3 is that the order intake declined, and it’s mainly delays as we’ve been talking about for the last few quarters when it comes to larger and major investments. Especially, we had a very slow summer, whereas it came back, the business after a long summer holiday, it seems business came back in September in a strong mode and has continued so a little bit so far.
The strongest two quarters before bode well for the currency-neutral sales growth that we had, and it’s been the most profitable quarter of this year despite significant negative currency and tariff effects. We have conducted further investments in product development and launched a few, and we have also focused a lot on operational efficiency. We have strengthened our leading position in industrial air filtration. Now, Matthew, some of the financials.
Matthew Cusick, CFO, Nederman Holding AB: Exactly. If we start with orders received, as Sven mentioned, orders received did decline. These continued delays on the major investments was the main issue there. The base business was relatively strong, particularly at the end of the quarter. For the quarter three, total order intake was SEK 1.25 billion versus SEK 1.44 billion, sorry, same quarter last year. Currency-neutral, that’s a decline of 7.1%. The currency actually in itself has a 6% negative impact. It is, of course, the weakening of the U.S. dollar, particularly versus the Swedish krona. That’s the major impact there. Year to date, orders are SEK 4.18 billion, down from SEK 4.38 billion. Very nearly flat on a currency-neutral basis, minus 0.3% organically, minus 3.2%. We have got some positive impact from the newly acquired companies or the companies that we acquired since Q3 last year. That’s Olicem in Denmark and Euro-Equip S.L.
down in Spain. Moving on to the sales, currency-neutral sales and sales growth and organic sales growth, both in the quarter and for the year to date. We’re very pleased with that. Sales currency-neutral up 7.5%. The currency very much in effect, very much in line with orders around 6% negative. Organic growth 2.2% in the quarter as well. Year to date, currency-neutral growth is still at 4.3% and organically we’ve grown 0.5% despite this very challenging market with the reduced or the longer decision times on these major capital investments. If you’d see on the bar charts at the bottom, there is a clear SEK 184 million of the sales reduction is purely down to currency movements, which is significant.
It has less of an effect on profitability, of course, but it’s still not an insignificant effect on profitability, which if I move on one more slide onto slide seven here, good profitability despite negative currency effects. The adjusted EBITDA in the quarter, quarter three, was SEK 166 million. That’s up SEK 5 million versus the same quarter last year. The negative currency effects were SEK 19 million in the quarter as well. This is extremely strong. If we look at the margin, the margin in the quarter 11.6% up from 11.4%. We would have been clearly over 12% had we not seen this impact from the dollar. It’s a lot of ifs and the dollar is how it is, of course, but it’s important to have that in context, particularly when you’re looking at comparative periods.
Earnings per share SEK 2.27, that’s up from exactly SEK 2.00 for the same period last year. For the year to date, adjusted EBITDA SEK 468 million. Margin down somewhat, 10.9% now versus 12.2%. Earnings per share well behind following the weaker start to the year in terms of total profitability. Solid cash flow performance in the quarter was a clear positive. This stable cash flow is despite the negative impact that we do have. When we take these larger, particularly in process technology division, the larger investment projects, the larger projects within the net from a Netherlands perspective, they very often come with large down payments and we are very often cash neutral throughout these projects or even cash positive throughout these projects. There has been a lack of those and that does impact cash flow somewhat negatively.
Despite that, we’ve got a good steady inflow of cash flow from operations and a clear positive free cash flow for the quarter despite our continued expenditure and investments in R&D and in our operations around the world. Cash flow from operations SEK 123 million in quarter three versus SEK 181 million, which is extremely strong in quarter three last year. Year to date SEK 198 million, so it’s picking up now. Net debt position we have following in Q2, we saw an increase in net debt due to dividend payments and we acquired Euro-Equip S.L. back at the very start of Q or the very end of Q1. That has come down somewhat. We are nevertheless higher than we were 12 months ago, but we can see excluding IFRS 16, the debt is reducing right now despite significant investments.
If we move on and take a little look division by division, Sven, we can start with extraction and filtration technology.
Sven Kristensson, CEO, Nederman Holding AB: Yeah, extraction and filtration technology and a little bit of the highlights during the quarter. As you’ve seen with figures, the orders received declined after two very strong quarters in the beginning of the year, and it was especially during the summer months. It picked up, as mentioned before, in September, and we hope that that will continue. Strong order intake in Q2 led to a sales increase, so we had good sales in the quarter, and we had a profitability improvement with the higher sales and also with the operational efficiency we have been talking about earlier. If you go to EMEA, there has been a bit of weaker base business, and contradictory to that, a number of major orders that have been discussed earlier, they came in in September, and especially a large defense order in the region of Spain. Americas had order intake slowing down.
It’s been mainly in the U.S., which is obviously the biggest market. It picked up again in the latter part of the quarter. APAC, slow base business, some of the distributor channels saw some growth, and Australia, where we are investing in new personnel and new structure, we’ve seen a continuous stable development. Some of the key activities were participation in Schweiz and Schneider. It’s a world-leading trade for cutting coating technologies. We also participated in the AWFS trade in Las Vegas, and we were showcasing especially the Nederman Save. It’s our digital system saving energy, and it’s an innovation that has given us some rewards, not only rewards from different trade fair, what do you call it, competitions, but it’s also selling very well. We have continued to invest in the innovation center at the new facility here in Helsingborg, and it’s fully booked for the coming six months.
We’ve had to increase the number of employees there. We have also continued our development product and investment in new product development, which has been launched and there will be further launches later in this year and during the first half of next year.
Matthew Cusick, CFO, Nederman Holding AB: Some financials for extraction and filtration technology. Order intake, as Sven mentioned, did decrease in the quarter. It picked up in September, but nevertheless, it’s currency-neutrally down 12% versus what was a very strong quarter three last year, it must be pointed out. Sales, in absolutely even at prevailing rates, we actually increased sales by over SEK 20 million to SEK 655 million. Currency-neutral growth is actually 9%, which is very good. EBITDA increased to SEK 91 million versus SEK 78 million there. This is the division that’s impacted most in absolute terms by the currency impact. There’s, of course, the translation effect of currencies that impact every division. In extraction and filtration technology, we actually produce in some of what we produce in Europe is sold in America. It’s not a major part of our American sourcing that comes from particularly Sweden, but it does impact negatively.
They were down to the tune of around SEK 7 million in the quarter just purely on currency. Despite that, the margins increased to 13.9% versus 12.4% last year. We see more efficiency in our operations. We’ve invested in our factories in Poland, here in Helsingborg, at RoboVent in the U.S. as well, and we’re definitely seeing margin improvements due to that. Overall, a very, very strong quarter for the division. If we look year to date, the EBITDA has even increased there. We’re up to SEK 266 million versus SEK 260 million at the same point 12 months ago. Again, despite significant negative currency effects, margin still in line and clearly right now better for the last three months than it was 12 months ago. Moving on, Sven, on to process technology division.
Sven Kristensson, CEO, Nederman Holding AB: Yeah, process technology. For the first, we had a few large orders. As we’ve said, there’s a hesitancy to book the larger project, but we have had a solid base of small, mid-size orders. What’s also very pleasing, we continue to have double-digit growth in our service business, and that also secures that we have a good relation with our customer. It’s a known pattern. If you’re not doing your major large investment, you have to keep your existing factories up running, and we are doing very well here. You can see some of these things that are happening is that old steel mills in the U.S. are refurbished, etc. Some things happening from tariff. Orders and sales and profit were very positively impacted by Euro-Equip S.L.
It seems to be a good integration in the business and where we have strengthened our position, especially in the Americas and also a little bit in South America on these recycling and also other parts of this hot air application that they are working with. They have been a partner for Nederman for a long time and get their supply mainly from our German factory. If we look at textile and fiber, there is definitely an overcapacity currently in spinning mill, and we see that we are taking market share. There are some of our competitors that are declining rapidly, and that is due to our new, more modern systems. The order intake grew, but from a low level. Foundry and smelters, activity in air such as scrap metal smelting and battery recycling are improving. All types of recycling business is interesting for the moment.
Here we have technologies, and we’ve had it for decades. We are using that. The long-term outlook for metal recycling is positive, but again, we don’t know when they will do the larger investment. It’s more likely that there will come this with the interest in the circular economy. Evaluation of relocation of sourcing and manufacturing of some product lines in certain markets is ongoing, and that means that we will maybe manufacture more in Asia for the Asian market. In customized solutions, there has been a slight increase in orders received, and we have executed on a major green steel order that we got in Q2. It’s been getting attention in the market with our new, more modern solution to this, and it might lead to more orders in the future, or we believe it will.
The key activities, we have increased the production rate for energy efficient fab for textile plants amid continued order growth. It’s been an enormous interest of this little engineering success where we save a lot of energy for these big spinning mills, weaving mills, etc. We have a continued development of the service business, including the digital product range, and we’ve seen significant success here as well where they see the possibility to modernize their existing, not only on the new green fields.
Matthew Cusick, CFO, Nederman Holding AB: When it comes to finances for process technology, orders received increased currency-neutral by 3.4%. A 4.6% organic growth decline. Euro-Equip S.L., the acquired company, contributed positively there. Sales, 11.5% up versus the same period last year. Currency-neutral, again, Euro-Equip S.L. contributing there. Adjusted EBITDA slightly lower than the same period last year. There is some currency impact even for this division. $43 million versus $46 million last year is 10.2%, which is behind 11.4%, which it must be pointed out is extremely good. It was an extremely good quarter last year. In Q3 last year, we did close out a number of projects at very good margins that boosted the margins. 10.2% for the quarter is still clearly higher than the average for the year to date. It’s heading in the right direction there. 8.5% for the year to date.
You can see for the past 12 months, we’re still at 9.3% of EBITDA margin, which is very good for this division. One of the main things that boosts this is the good strong service business sales which continue to grow. If we move on once more to duct and filter technology, Sven.
Sven Kristensson, CEO, Nederman Holding AB: Yes, for duct and filter, the highlights for development, we had a decline versus last year Q3 in order intake, but it was an increase from a weaker Q2 this year. It moves in the right direction. It was, of course, negatively impacted by low overall activity and the weakening in the U.S. dollar. Customers’ appetite to commit major investment projects remains dampened, and we see that the small mid-sized business is running, but we are lacking some of the large projects we have had over the last few years. If we look at Nordfab, U.S. orders received and sales increased. We had some new orders secured for EV battery manufacturers. In EMEA, orders received were behind, again, 2024, but exceeded last quarter. It is moving a little bit in the right direction. As we’ve said for the other division, activities increased in the last month of the quarter.
APAC saw lower total orders in Q3. Although Australia developed positively, and we are now moving in the right direction in Australia. Menards, orders received in the U.S. started to grow again, and we had a large framework order received as well as large orders from the steel industry. I mentioned that before. This is a bit contradictory. Old steel mills in the U.S. are, due to the tariffs, being more profitable to upgrade and keep going here. If it’s good for the world economy, I doubt, but it’s good for our business here. We’ve got some significant order. Key activities, the new production and warehouse facility in Thomasville is now ready for use. It will increase the capacity for large diameter pipes.
It will definitely increase efficiency, and we have ordered the new 420 megawatt hours solar panel facility, and that will be installed on the roof of the new building. That means that we will, when fully installed, have a facility that is nearly carbon neutral. Preparations are underway for the establishment of a central warehouse for Nordfab in Texas. This is a project that is based on the Nordfab now, where we then can service our customers in Texas, or not only Texas, but in the southern region, significantly better than we can to do. We expect that this is up running. We will have very short lead times also in the southern region, and that will bode well for further growth in our orders.
Matthew Cusick, CFO, Nederman Holding AB: Financials for duct and filter then. Orders received, as you mentioned, it declined versus the same period last year, but increased versus the previous quarter. 6.2% currency-neutral growth net is negative in the quarter. Sales very nearly 0.6% down currency-neutral. There is a currency impact with a large chunk of the sales in this division being in North America. The adjusted EBITDA $37.4 million versus $44.9 million in the same quarter last year. There’s again a negative currency effect that’s not insignificant. It’s around $4 million on this division too. Approximately half of the reduction is currency related. The margin is still at 18.6%, which is, it must be said, historically speaking, rather strong, albeit behind what we’ve seen in the most recent quarters. It’s largely volume related. We have got good efficiency in the factory and operations here. Nevertheless, 18.6% and then 19.8% for the year to date.
Onto the fourth division, Sven, monitoring and control technology.
Sven Kristensson, CEO, Nederman Holding AB: Yes, and again the highlight development during the quarters. The orders received declined a bit, and that’s burdened primarily by the development in America. It’s very much so that some of the technology chains and the new products, they are working and are received very well, but we are still lacking some large orders here as well. We have also seen the difficulties between Canada, U.S., and also the close down since GasMet has a lot of public customers, universities, customs officers, police, etc. Their ability or willingness to invest has been difficult during the quarter. We’ve seen a strong sales growth, especially in APAC for NEOMONITORS. We have also started work to strengthen the business model through reviewing supply chains and optimizing production setup. That is a work that continues. In EMEA, we had good order intake driven by GasMet winning a number of major orders.
We have also enhanced production efficiency in NEOMONITORS, and we’ve seen that it gives good results. It improves our margins and it improves our supply capability, which also helps the sales when we have not so long supply times, especially to Asia. Again, our in November acquired Olicem received large software orders. In APAC, we had good growth, as mentioned before, for NEOMONITORS, and we have also the technology hub in Shanghai that we started a few months ago, almost a year now. It continues to attract strong customer interest. Here we can do service, we can do special shows, we can again show our capabilities, and that has shown a good result in the market. In America, orders received did decline. The process of auditing and certifying OBUS product line continues, and it will give an improved platform for OBUS expansion in APAC and EMEA.
Currently, we have halted some of the plans that were to further strengthen our position in China, but as you have probably heard, seen more than you like that with 100%, 125% tariffs on American stuff going to China, it’s been a bit difficult to grow the business currently. We are planning for that, and we are also setting up capabilities in South Korea to expand in the region. Key activities, the launch of OBUS PM Pulse portable test unit, launch of the Olicem Data Hub, and final phase of expansion of OBUS Boston facility with more streamlined manufacturing and also higher capacity in the new product line.
Matthew Cusick, CFO, Nederman Holding AB: Financials then for monitoring and control technology. Order intake down versus the same quarter last year, SEK 177 million versus SEK 208 million. This division did see a pickup in the same way as ENFT. This division saw a big pickup in September versus very slow July and August. The question is, will that continue? If it does, we can be quite confident that that will impact profitability positively. Sales, currency-neutral, grew by 1.3% in absolute terms, down to SEK 182 million from SEK 190 million. EBITDA SEK 29 million versus SEK 30 million last year, it’s currencies that do make a slight impact there. Margin maintained at 15.8% despite a drop in sales is quite pleasing. That’s a result, not least of, for example, these improvements we’ve made in the production efficiency in NEOMONITORS.
For the year to date now, the division is at 16.3% EBITDA, and that’s versus 16.6% for the same period last year. If we just take a minute or two on the outlook then, Sven, going forwards.
Sven Kristensson, CEO, Nederman Holding AB: Yeah, the demand has been and remains dampened, and the backlog is slightly lower than 12 months ago. Our base business, a growing service business, strong digital range enable us to assert ourselves well in the current turbulent market. We are gaining market share. Orders received picked up significantly in September, and if that trend continues, that would lead to positive results for development in Q4. We continue to invest in our operational efficiency and development of our product range. Again, in a world where growing insight into the damage that for our course, Nederman has a key role to play and a strong potential for continued growth.
Matthew Cusick, CFO, Nederman Holding AB: We’ve released some dates for next year. We will release the year-end report on the 12th of February 2026. The other dates there, I will not read out, I will not bore you by reading out, but they’re available for everybody. They’re published in the report and also in this presentation. With that said, I think we can open up if there are any listeners who have questions they would like, please go ahead.
Conference Operator: If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. There are no questions at this time, so I hand the conference back to the speakers for any closing comments.
Sven Kristensson, CEO, Nederman Holding AB: Thank you. Apparently, it’s been crystal clear or crystal clear as copper sulfur, as my old chemistry teacher said. Thank you for taking the time listening to us, and we’ll be in touch again after next quarter. Thank you.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.