Momentum Group Aktie

Welcome to the presentation of Momentum Group's Q1 report for 2026. I'm Ulf Lilius, CEO of Momentum Group, and I'm here with my colleague, Niklas Enmark, Vice President and CFO, and we will guide you through our report today.

The business climate continues to be hesitant where our customers have a strong focus on costs and where demand is generally sluggish. Adding to this, this last quarter brought an increased anxiety coupled to the geopolitical turmoil. This was especially apparent in the first half of March when the market was quiet. Later in the month, the situation bounced back, enabling us to somewhat compensate for the tough start.

In this environment, our priority is to have a strong focus on costs as well as pricing and efficiency measures to mitigate the volatility in demand and volumes. At the same time, we urge our companies to maintain high customer activities in order to be well positioned to meet the gradually improving market demand as it materializes.

We also continue to make selective acquisitions in line with our strategy. I'm pleased to see that despite the tough market condition that had a relatively large negative impact on our sales volumes, we have performed fairly well in all other categories.

Our gross margin is improving and our cost base is decreasing. We have also completed 2 acquisitions in the start of this year, and we have a good pipeline going forward. I will also give you a few words on the acquisitions made in 2026.

Hoglandets Kompressorservice is a specialist in compressor technology for industrial customers and was acquired during the quarter. Actuated Solutions in the U.K. was acquired after the period and marks our entry in the U.K. market and the first acquisition outside of the Nordics.

The short-term market situation remains challenging. And given the prevailing geopolitical uncertainty, we expect customers to exhibit a certain level of restraint also going forward. We continue to focus on what we can influence and with the actions that have been taken, we are well positioned to meet improved demand and be the best choice when business decisions are made.

We stick to our long-term ambition to reach SEK 600 million (sic) [ SEK 680 million ] by the end of 2030, even though we could have wished for a more comfortable start of that journey, but we have several more quarters left to continue to improve.

I will now summarize market and sales for the quarter. On a total level, the group reported unchanged revenue during the first quarter of the year with good contributions from acquisitions. The sales from comparable units decreased by 6% as the business climate in the group's main markets in the Nordic region remained hesitant.

Improved signals from the market at the end of last year gave the way to a more cautious customer situation at the beginning of this year, where we saw focus on cost control as well as restraint in investment decisions and maintenance among our customers.

The Danish market was weaker than the other countries in the Nordic region, primarily due to lower activity in project-intensive segments. Demand in other markets was more stable, although variation continued to be noted between various customer segments.

The period was dominated by varied demand, geopolitical uncertainty and periodically lower activity levels among customers. Seasonal factors had a relatively significant impact during the quarter with lower activity in planned maintenance, leading to lower capacity utilization in parts of the service operation.

Several group companies noted a slight improvement in demand towards the end of the period after notable lower activity level at the beginning of March, likely as a result of the geopolitical tensions.

Overall demand was cautious with geopolitical tensions weighing heavily. Sales fluctuated during the period, but a slight upturn in sales took place towards the end of the quarter. Acquired operations made a positive contribution to revenue and earnings.

To date this year, Momentum Group has completed 2 acquisitions, one of which took place after the end of the quarter, with a combined annual revenue of approximately SEK 80 million.

I will now hand over to Niklas for the Q1 report, and I'll return to discuss Momentum Group's outlook.

Thank you, Ulf. Now I will go through the development per business area.

Revenue for the business area Industry decreased by 2% to SEK 431 million compared with the same quarter of last year. Revenue for comparable units measured in local currency and adjusted for the number of trading days decreased by 3% compared to the previous year. That's the same change that we saw in the previous quarter.

EBITA decreased by 10% to SEK 57 million, corresponding to an EBITA margin of 13.2%. The EBITA margin does mean a positive change compared to the 10.8% that we reported in the last quarter of last year.

The quarter-over-quarter improvement attributed to high gross margins, reduction in costs and strong contributions from acquisitions. The business area's profitability measured as return on working capital amounted to 63%.

Power Transmission sales fell slightly with a somewhat lower EBITA margin, but with strong gross margins. Demand bounced back to positive in the Pulp & Paper and Mining industries, but decreased again in the Automotive industry. The performance in other customer segments varied.

Activity levels shifted during the quarter with a generally weak start followed by gradual improvement, but likely affected by geopolitical turmoil causing volatility in demand and sales with an overall dampening effect.

Within Specialist, sales and EBITA margins declined for comparable units. The business unit noted a sluggish demand for systems and projects for the manufacturing industry in general. And in Denmark, demand was markedly weaker than in the previous year, primarily due to lower activity in larger projects as we also commented on last quarter.

During the quarter, acquired operations contributed revenue of SEK 10 million with a strong contribution to earnings. Quarter-over-quarter, the business unit improved markedly with higher gross margins and lower costs as actions have been taken to mitigate the effect from lower sales volumes.

Revenue for the business area Infrastructure decreased by 4% to SEK 316 million compared to the same quarter of last year. Traditionally, Q1 is a quarter with lower revenue, which is then due to the structure of the businesses involved in this business area.

Revenue for comparable units measured in local currency and adjusted for the number of trading days decreased by 9% compared to the previous year. That's a worse performance than in the previous quarter.

Besides a generally cautious market likely affected by the geopolitical situation, in the business area, we also saw more pronounced seasonal effects, partly caused by company mix effects, but also partly by harsh weather conditions affecting the service businesses within the area.

EBITA decreased by 4% to SEK 22 million, corresponding to an EBITA margin of 7.0%. Improvements were seen in both gross margins and reduced costs compared to the corresponding period of last year, which was then not fully able to compensate for a relatively large drop in sales for comparable companies.

All in all, acquisitions gave a slight positive contribution to earnings. The business area's profitability measured as return on working capital amounted to 62%.

Within Flow Technology, sales for comparable units declined slightly, but with increasing earnings, especially due to strong gross margins. Demand was impacted by a more cautious market, especially affecting the inflow of projects.

The product sales trend was positive in Sweden, but significantly weaker in Denmark. Service utilization was somewhat lower during the quarter. During the quarter, acquired operations contributed revenue of SEK 29 million with a strong contribution to earnings.

Within Technical Solutions, sales and earnings for comparable units declined. The performance was impacted by lower capacity utilization in parts of the services operation, driven by the seasonal effects and also customer restraints.

The Measurement & Control operations reported improved earnings despite lower sales volumes. Acquired operations contributed revenue of SEK 12 million during the quarter, which was characterized by low activity levels, resulting in a negative earnings contribution.

Coming back to the group again and some comments on the earnings and profitability performance. EBITA during the first quarter decreased by 8% to SEK 70 million. During the quarter, we had a positive contribution from acquisition, which was then not able to compensate for the lower EBITA for comparable units.

Looking at the latter, we increased the gross margins and lowered costs in absolute terms, but could not fully compensate for the drop in organic sales volumes. The EBITA margin of 9.5% was lower than last year, but was also a small increase from the previous quarter.

Besides the operational comments per business area that I gave, EBITA and EBITA margin was also affected by higher depreciation than last year by SEK 3 million. Positive to note is that we continue to increase our gross margins in the group despite the fact that there is a high degree of attention to costs and prices among our customers.

Operating profit was SEK 56 million, corresponding to an operating margin of 7.6%. Operating profit is affected by higher level of amortization with an effect of SEK 2 million compared to the previous year. Last year's operating profit was charged with costs affecting comparability of minus SEK 3 million.

Rolling 12 months, we continue to increase our revenue now by plus 5% to SEK 3.1 billion. Included in this are contributions from acquisitions by SEK 288 million. Per business area, net sales decreased by 1% within the Industry business area and in Infrastructure, net sales increased by 15%.

Our EBITA increased by 2% to SEK 331 million with an EBITA margin of 10.7%. Per business area, Infrastructure increased its EBITA with 22% with increasing EBITA margins, whereas Industry saw its EBITA decreasing by 7% with slightly lower EBITA margins. Earnings per share stood at SEK 3.7 per share.

Looking at some profitability and cash flow comments. Our key financial metric of EBITA over working capital remained relatively stable during the year at 56%. The slight decrease is due to the somewhat lower EBITA margins during the rolling 12-month period. Our return on equity stood at 24%.

Cash flow during the quarter was highly affected by the large shifts in sales and invoicing. As the later part of March saw an increase in sales after the slowdown in the beginning of the month, accounts receivables were high at the end of the period, thus affecting cash flow.

During the period, inventory levels continued to decrease now by SEK 5 million. Cash flow from operating activities was SEK 64 million and after working capital changes, SEK 57 million. For the rolling 12-month period, cash flow from operating activities was SEK 312 million.

Operational cash flow also includes positive IFRS 16 effects of accumulated SEK 95 million, which is then met by the same negative number in financing activities, making the net amount 0.

Cash flow from investing activities for the reporting period amounted to SEK 34 million, and this cash flow also includes acquisitions of SEK 21 million and also settlements from acquisitions that is earn-outs and call options of SEK 9 million during the period.

Our operational net loan liability amounted to SEK 356 million at the end of the period. The operational net debt to IFRS adjusted EBITA ratio was 1.0 at the end of the period.

And with that, I hand back to you, Ulf.

Thank you, Niklas. Now I'll give you some input about our journey and priorities in coming years. We have a long history from the start in 1996, the foundation of Momentum Group, which was bought by Bergman & Beving in 2004. Momentum Group's favorable development since its listing in 2022 has been driven by the consistent application of our business culture and work methods.

We want to acquire leading small- and medium-sized specialist companies and help them to grow and develop in a positive direction. We consistently invest the cash flow we generate in new well-functioning and profitable businesses and thereby finance our growth ourselves.

Since our spin-off in March 2022, we have increased revenue by about SEK 1 billion and completed 31 acquisitions, 2 in 2026, with 9 being bolt-ons, while maintaining strong cash flow and capital discipline.

Operationally, our organization model based on decentralization, clear management objectives, continuous improvement and simplicity is therefore well established.

We applied our capital allocation model in a disciplined manner with each subsidiary working towards earnings and working capital targets, supported by Momentum Group in its capacity as an active and committed owner. The model fosters a sense of responsibility and challenges our companies to identify growth and development opportunity at all levels.

Our acquisition strategy is another important factor in our success. In recent years, we have given our business units greater responsibility for acquisitions and strengthened the organization to support acquisition at subsidiary level. This has had the desired effect and it's reflected in the number of quality of acquisition opportunities we evaluate.

We have also seen that our way of developing companies attract entrepreneurs, which instills confidence in our ownership concept with Momentum Group acting as a permanent owner.

A very important factor in being able to reach this goal is to keep up a high acquisition pace. That is why it's important for us to generate good cash flow from our operation.

Our financial target for profitability of working capital is a simplified measure of cash flow, meaning that if we can drive good after-tax profits from our business and be stringent in our working capital measurement, we should generate a good cash flow, which is fundamental to reach the earnings growth target.

This autumn, we transition to the next stage. Fostering organic growth within our current businesses we aim by enhancing both value and efficiency expansion and strengthening our position across the value chain and product verticals and evaluating opportunities to expand our geographical footprint as well as building a stronger M&A organization.

The objective for the next phase is to achieve a further doubling of EBITA targeting approximately SEK 680 million by the end of 2030. This aligns with our goal of expanding profits by 15% annually over a business cycle. We are very aware that this was not the best start to reach our next 5-year goal, but we have 3 more quarters this year to improve and 19 to reach the goal.

Turbulent times call for a warm heart and a cool head. Compassion combined with clear judgment and culture, we intend to continue along the path we have established with a focus on earnings growth, a controlled balance sheet, strong cash flow and continue to use our capital allocation model.

This will create the condition and organization improvements for further value-adding acquisitions, thereby increasing our profit and earnings per share over time. Our decentralized profit responsibility, proximity to customers and ability to adapt to changes in our operating environment will continue to be a strength over time.

Thank you for your time and interest listening to our Q1 presentation, which are available with the report on our website. If you have any questions or specific requests, do not hesitate to contact us through our IR e-mail or by phone. Thank you once again.

Hello, everyone, and welcome to our Q&A session following the interim report for the first quarter that was released this morning. As usual, we have received a number of questions, and we have here our CEO, Ulf; and CFO, Niklas, to be answering the questions. So let's get started.

Organic growth was down 6% in Q1. How much of this is structural versus more temporary geopolitical effects? And has the improvement towards the end of the quarter continued into April? Ulf, please, can you answer that?

Even though we had a negative organic sales development in both business areas, there are some differences. Overall, however, we met the market in Q1 that was more cautious after the more positive signals we saw in the end of last year. We see this primarily as timing rather than anything structural.

We don't see a short-term structural shift as regards to customers and their fundamental situation in Q1. Yes, of course, there are great uncertainty out there, but most of all, our customers are continuing their operation as before, albeit at a lower pace.

The development in business area Industry continues at about the same pace as these last quarters, a generally sluggish market with lower project sales and the situation in Denmark that has hampered growth these last quarters. We are continuously addressing this, and we saw a clear improvement in EBITA margins in Q1 versus Q4 of last year due to cost reductions and stable gross margins.

The development in business area Infrastructure is mainly driven by lower activity in service and project-related business where customers were clearly more cautious, both in investments and in planned maintenance. Towards the end of the quarter, activity improved with more inquiries and a somewhat higher activity level across several parts of the group after a weak start to the month due to the geopolitical situation.

The strong finish somewhat compensated for the slow start of the month, meaning that March as a total was an okay month. However, Q1 is very impacted by March as January, February are lower activity months, which meant that the final weeks of March was not sufficient to have a significant impact to the whole quarter.

Next question. In Infrastructure, how much of the drop in organic growth is driven by service utilization, project activity, seasonality and general caution, Ulf?

It's a combination of all those factors, and it varies somewhat between the business units. In Flow Technology, the largest impact came from a more cautious market with the largest effect on project demand and also somewhat lower service utilization levels. In the business unit, we also saw a significant drop in sales in Denmark.

In Technical Solutions, we had a more pronounced seasonal effect this quarter with lower activity in planned maintenance, which directly impacted utilization in our service operation.

Also in this area, we have a company mix effect from the fact that some of the acquired businesses these last years have more noticeable seasonality in their businesses. Companies such as Avoma and WH-Service. So overall, it's a mix of seasonality, lower project volumes and general market caution, not a structural change.

In the report, you mentioned postponed maintenance. Is this mainly timing? And do you expect this to come back in Q2?

We see this as a timing rather than a permanent reduction. Customers are postponing maintenance slightly due to uncertainty relating to their own demand situation and also focus on cost reductions as well as production planning, of course. But underlying need is still there.

Historically, this type of work tends to come back, although not necessarily fully in one single quarter. It can be spread over time. But Q2 to Q3 is usually the period where we have the highest maintenance activity levels.

And more specifically in Infrastructure, the customer who has postponed the maintenance in the quarter, is the effect broad or concentrated to a few larger customers?

Our customer concentration is generally quite low. So from a group perspective, the customers are not large. But for a single company that have a handful of service technicians planned for maintenance work that is postponed, that, of course, will be of great importance for that single company.

The next question, how do the project sales develop compared to last year?

As we state in the report, the general project activity continues to be quite weak, but has been so this last year. So nothing dramatically has really changed there. What has changed is the fact that in Denmark, we've had some larger projects in both Industry and Infrastructure that have been completed during 2025. This reflects the cautious behavior we see among the customers when it comes to larger investment decisions.

Denmark was the weakest market. Is this temporary project related or something more structural?

Well, as I stated before, it's mainly project related and linked to lower activity in certain segments and these projects that I mentioned before. Denmark has been a strong country for us over a longer period. So part of what we see now is more of a normalization back to sort of the normal levels.

Gross margin improved despite weaker volumes. What is driving that? Is it mix related?

Mix is part of the explanation, but not the only one. We have seen somewhat lower volumes within certain lower-margin product areas and also the projects sometimes have a bit lower margins. The lower project volumes does partly explains this.

But more importantly, this reflects the pricing discipline and the active management at the company level that has been performed and the fact that we say no also to work that is not generating acceptable margins. Our businesses tend to adapt quickly to the market situation, which supports the gross margin even in a softer environment.

How much of the decline in the EBITA margin in Infrastructure is utilization driven versus mix or pricing?

The majority is utilization driven. Lower service utilization has a direct impact on margins as we have the costs for personnel, and that is the main explanation this quarter. The drop-through rate from lower utilization is quite high.

How are you balancing short-term cost control with maintaining capacity and sales activity ahead of the recovery?

That balance is very important for us. We work actively with cost control and adapt where needed, but we are careful not to weaken our market position. So we continue to invest in sales activities, customer relationships and competence. Our decentralized model allows us to take these decisions closer to the customer and adjust in a pragmatic way.

You have completed 2 acquisitions year-to-date. How does the pipeline look in terms of deal flow, seller willingness and valuation levels? Ulf?

We continue to see a good inflow of opportunities and an active pipeline. Seller willingness remains solid and many entrepreneurs are looking for long-term industrial owners. Valuations are relatively stable overall and assessed case by case. So we see a supportive environment for continued acquisitions.

The pace of acquisitions seems lower than the strong start in 2025. Is that due to increased competition or something else?

The pace can vary between quarters depending on timing of processes. We don't see any structural change in the market or increased competition affecting us materially. So this is mainly about timing rather than a change in underlying activity.

How do recent acquisition compare in terms of seasonality? Is the revenue and EBITA profile similar to the group?

Broadly speaking, yes. The companies we acquire typically have a similar mix of products and services. So the seasonal profile is largely aligned with the group as such. There are some recent acquisitions, however, that are more seasonally dependent, such as Avoma, WH-Service and Sulmu, all part of the Infrastructure business area.

And as the Infrastructure's share of sales and EBITA has increased over time, seasonality have become more visible where Q1 and Q4 account for a lesser portion of sales than before.

And now the last question today. With your entry into the U.K., should we expect further geographic expansion? And how are you working to grow in that market?

The U.K. is a natural next step and an attractive market for us. Our focus now is to develop the platform we have established, building on the existing businesses and identifying opportunities for further growth, both organically and through acquisitions. At the same time, the Nordics remain our core, but we are open to expansion where we see the right opportunities.

Okay. So that concludes today's Q&A session. Thank you for listening. And of course, if you have any follow-up questions, please don't hesitate to contact us. Thank you, and have a good day.

Welcome to the presentation of Momentum Group's Q3 report for 2025. I'm Ulf Lilius, CEO of Momentum Group, and I'm here with my colleague, Niklas Enmark, Vice President and CFO, and we will guide you through our report.

Our agenda today is to give you some information about the highlights from Q3 and the development during the quarter as well as financial information. We will round off with us going forward, not to the highlights in our report.

We continue to deliver earnings growth and healthy profitable despite challenging and cautious market climate in the third quarter. Through cost adjustment in our companies and strong contribution from the companies acquired during the year, we succeeded in offsetting the effects of a weaker sales trend in comparable units. Revenue increased by 7% during the quarter, and we achieved our highest EBITA ever for a single quarter. Year-to-date, 6 companies have been acquired, adding combined annual revenue of approximately SEK 300 million.

The third quarter was characterized by continued uncertainty in the Nordic region. Demand was subdued in several industrial segments, particularly automotive, metal and mining as well as part of the electricity and heat production segment. At the same time, we noted stronger demand from the pulp and paper industry as well as the steel industry. It was also encouraging to see a stronger sales trend in Finland.

The summer months of July and August were characterized by lower activity levels, while September ended on a strong note, which meant that a larger share of the revenue was noted towards the end of the quarter. This resulted in higher accounts receivable at the end of the period and impacted cash flow for the quarter.

Despite these conditions, the group's revenue increased by 7% year-on-year. Our decentralized model based on the clear financial targets and local accountability has enabled us to adjust our cost level and ensure our delivery capacity. Along with strong contribution from companies acquired during the year, this offset the effect of weaker sales in comparable units and resulted in improved EBITA.

Our acquisition strategy remains a central part of our growth model. During the year, we have carried out 6 acquisitions to strengthen our position in the Industry and Infrastructure segment in the Nordic region. These companies have provided us with specialist expertise, complementary offerings and new customer relationships, and we have already started to have a positive impact on the group's performance. Our model is based on active ownership, decentralized responsibility and long-term partnerships with the entrepreneurs behind the acquired companies.

In parallel, we continue to develop our existing businesses. By combining local entrepreneurship with the group's resources in areas such as purchasing, skills development and digitalization, we're creating the conditions for profitable organic growth.

A strong EBITA through working capital ratio allow us to focus on low and stable working capital in all our companies, generating good cash flows from our operating activities. With a strong balance sheet and available credit facilities, we can continue to invest in growth through both acquisition and organic development without compromising on our profitability.

We are now in one of the most intensive sales period of the year. The world around us remains uncertain with geopolitical risks, energy concerns and inflation affecting our customers. Our task is clear: to work closer with customers, offer competitive solutions and adapt quickly to changing market conditions. Improvement measures are being implemented on an ongoing basis in each company with the aim to continuously drive development forward and deliver long-term sustainable results.

In parallel, we're continuing to evaluate new acquisition opportunities and believe there is a good potential for continued growth. The strength of our model -- focused on growth, profitability and development -- is well-proven, even in challenging times. With committed entrepreneurs in our companies, strong customer relationships and a clear strategy, Momentum Group is well equipped for the future.

Now I'll hand over to Niklas, who will guide you through our Q3 report.

Thank you, Ulf. In total, our revenue increased by 7% compared with the year earlier period and amounted to SEK 746 million, of which acquisitions contributed by SEK 82 million. Sales for comparable units declined by 4% during the third quarter with business area industry decreasing 4% and infrastructure decreasing by 2%. The group's main Nordic markets experienced sluggish business conditions during the quarter with customers focusing on cost control amid uncertain demand.

In Sweden, demand declined in the automotive, mining and parts of the energy sector, although the pulp, paper and steel industries saw positive trends. Product sales were generally weak, but service operations benefited from repair work and maintenance stops during the quarter. Industrial demand improved in Finland, while Denmark and Norway remained quite stable. Purchasing costs rose moderately and delivery capacity remained strong in the companies. Some operations also implemented cost-saving measures to address fluctuating demand.

Globally, uncertainties and subdued industrial activity continue to pose challenges. The strong Swedish krona is expected to drive further cost focus among export-dependent customers. Since the group has limited trade outside of Europe, its performance is largely depending on Nordic industry trends. Despite slight optimism reflected in economic indicators, customer caution is likely to persist until a clear recovery emerges.

For the Industry business area, revenue for the business area decreased by 2% to SEK 395 million compared to the same quarter of last year. Revenue for comparable units measured in local currency and adjusted for the number of trading days decreased by 4% compared to the previous year. EBITA decreased by 9% to SEK 53 million, corresponding to an EBITA margin of 13.4%. The business area's profitability measured as return on working capital amounted to 68%.

Within the group, we have 2 different business units. And the first one, Power Transmission, where sales fell slightly with lower EBITA margins. After a weak start during the quarter, sales improved, especially to pulp and paper, metal and mining customers with several projects closing late in the quarter. Strong cost controls partly offset lower gross margins caused by ongoing customer cost pressures.

In Specialist, both sales and EBITA margins dropped for comparable units. Manufacturing industry demand stayed soft, but strong orders from Sweden's defense sector balanced this. Sales were steady in Denmark and rose in Finland. Acquired businesses added SEK 10 million in revenue with solid margins.

At our other business area, Infrastructure, our revenue for the business area rose by 21% to SEK 358 million compared with the same quarter of last year. Revenue for comparable units measured in local currency and adjusted for the number of trading days then decreased by 2%. EBITA increased by 35% to SEK 50 million, corresponding to an EBITA margin of 14%. The business area's profitability measured as the return on working capital amounted to 61%.

In Flow Technology, one of the business units within this business area, comparable sales remained steady, while EBITA margin improved, thanks to strong service utilization. Growth in several operations offset lower product sales to some Swedish power and heat generation customers. Acquisitions added SEK 52 million to revenue and positively impacted earnings.

In Technical Solutions, comparable sales and earnings fell as customers reduced activity leading to weaker product sales. Service operations saw good utilization late in the quarter due to slightly higher demand. Measurement Technology continued to face weak demand during the quarter. Acquisitions contributed SEK 19 million in revenue and also boosted our earnings.

The group's EBITA during the third quarter increased 7% to SEK 95 million, which makes this the best quarter yet in terms of EBITA since listing in 2022. The EBITA margin reached 12.7%, where the EBITA margin in business area Infrastructure stood out as quite strong this quarter and then compensated for the lower margin in business area Industry. Business area Infrastructure increased its EBITA by 35%, as I mentioned, during the quarter, whereas Industry decreased by 9%. Besides the operational comments per business area, EBITA was also affected by slightly higher depreciations than last year by roughly SEK 3 million and also higher costs related to incentive programs with about SEK 1 million.

Positive to note is that we increased our gross margins in the group despite the fact that there is a high degree of attention to costs and prices among our customers. Also during the quarter, a relatively large portion of sales came from services, which also contributed to the increase in gross margins.

Operating profit increased to SEK 81 million, corresponding to an operating margin of 10.9%. Operating profit is affected by a higher level of amortization with an effect of approximately SEK 3 million compared to the previous year. Profit after financial items totaled SEK 72 million with a relatively stable financial net and earnings per share was increased slightly to SEK 1.10 for the quarter.

A brief summary of the 9-month period that we reported. Our revenue increased by 8% to about SEK 2.3 billion, where the organic development was minus 2%. Driver of net sales growth is as acquisitions, which have added SEK 239 million to revenue. Currency effects and number of trading days combined contributed with about minus 1% to net sales. Per business area, net sales was stable in Industry, where the organic change was minus 1.5%. In Infrastructure, net sales increased by 33%, where organic change was about minus 1%.

Our EBITA increased by 4% to SEK 263 million with an EBITA margin of 11.4% and where both business areas increased their EBITA. Given this last quarter, our net sales rolling 12 months is now for the first time above SEK 3 billion. Our EBITA is at SEK 333 million, which is almost twice as high as 3.5 years ago when we were listed.

And to round off my part, some comments on the cash flow and financial position of the group. To start off with, our operational cash flow before working capital changes continued on a strong level also in the third quarter. However, as we also mentioned in the report, net sales during the quarter was not spread evenly.

The summer months of July and August were characterized by lower activity levels; while September ended on a strong note, which meant that the larger share of revenue was noted towards the end of the quarter. This resulted in higher accounts receivables at the end of the period and thus impacted cash flow for the quarter in a negative way, combined with the fact that accounts payables are as usual at a relatively low level of the summer period.

During the quarter, cash flow from operating activities thus decreased to SEK 38 million. And for the 9-month reporting period, cash flow from operations was SEK 190 million. Our continued focus on working capital is high, and we are currently in the process of launching more specific working capital management projects within the framework of our business school.

Operational cash flow also includes positive effects from IFRS 16 of accumulated SEK 68 million, which is then met by the same negative number in financing activities, making the net amount 0. Cash flow from investing activities for the reporting period amounted to SEK 250 million. This cash flow includes acquisitions of SEK 206 million, settlements of prior acquisitions, including the earn-outs and call options of SEK 32 million and net investments in noncurrent assets of SEK 12 million. The level of net investments during the quarter was at a normal level and spread on several companies.

Our return on working capital stood at 58%, which is well above the financial target of at least 45%. And we also see that the working capital turnover has increased a bit during this year. Our return on equity was 25%.

As we continue to have a high reinvestment rate, about 100% of free cash flow after tax was spent on acquisitions the last 12 months, combined with working capital investments, dividends and our CapEx, our operational net loan liability amounted to SEK 472 million compared to SEK 252 million at the beginning of the year. Our net debt-to-EBITDA ratio was around 1.4 at the end of the period.

Total cash and cash equivalents, including unutilized approved credit facilities amounted to some SEK 630 million at the end of the quarter, which means that we, combined with a continued strong cash flow from operations and good balance sheet, have a lot of room for additional inorganic initiatives also going forward.

And with that, I hand back to you Ulf, where you will discuss the activities we take to continue to build the group.

Thank you, Niklas. Now we'll give you some input about our journey and an example from one of our companies in our value chain that is production of our own products. We have a long history from the start in 1906. The foundation of Momentum Group is when Bergman & Beving bought the company that I worked for, Momentum Industrial, in 2004. We have today 6 listed companies, where 5 work with the same financial goals and with extensive experience in acquiring and developing leading niche companies with a long-term ownership approach. We have made a great development from SEK 24 million in market cap to SEK 180 billion.

In the 5 years following our spin-off from Bergman & Beving, we quadrupled EBITA and doubled revenue through 19 acquisitions. Through our Industrial components, core business dropped to 15%. Acquiring Swedol allowed us to form the Alligo Group, which focus entirely on industrial components and solutions and pursue our key financial goal of maintaining EBITA through working capital above 45%. Our target is to increase EBITA by at least 15% annually over a 5-year time, aiming for SEK 340 million by the end of fiscal year 2026.

The table shows we have reached EBITA rolling 12 rate of SEK 333 million after 3 years and 3 quarters, and I'm confident we will maintain this momentum to achieve our goal on schedule. A very important factor in being able to reach this goal is to keep up a high acquisition pace. That is why it is important for us to generate good cash flow from our operations. Our financial target for profitability or working capital is a simplified measurement of cash flow, meaning that if we can derive good after-tax profits from our business and be stringent in our working capital measurement, we should generate a good cash flow.

The new group structure for continued growth, profitability and development has been vital for being able to reach the EBITA of SEK 340 million at the end of 2026. The change strengthened the conditions for organic and acquired growth in each business area by making better use of breadth and expertise that has been built up in the group since the listing. Since the spin-off in March 2022, we have increased our revenue with around SEK 1.5 billion and completed 28 acquisitions and 6 so far this year, 9 of the acquisitions has been bolt-on.

In order to create the best condition for continued growth and to be more clearly reflect our strategic focus, we made this adjustment of the group structure based on the market sectors in which companies operate. We want to utilize the expertise accumulated in the group, especially on the acquisition side and encourage knowledge sharing between companies with similar market conditions.

Our framework to reach the 5-year goal in EBITA was set during the listing. We said we will focus on the Nordic market, focus on value-adding resellers and service repair and maintenance, focus on local manufacturing, assembly and proprietary brands with end customer contact with lower CapEx need, focus on end customer in both MRO and OEM. Regarding the product verticals, we had added, for example, valves that today is our second largest vertical. One example of own products is Momseal. It's our brand for customized seals. We have a flexible production tailored to customer needs in material and dimensions, minimizing waste and environmental impact. We have 10 machines in 5 locations close to the customer, and we produce around 180,000 seals per year. Momseal is part of a specialized company, ETAB, which also have hydraulics in their portfolio.

Here's one example of how we assist customers by providing tailored solutions to reduce downtime and waste. In this case, we have replaced an existing product with a new material to decrease friction and increase wear resistance. And it got the improvements with increased machine availability, fewer wheel replacements and unexpected stops resulting in reduced product waste.

Here are some examples of products that we produce in our 10 machines. We mainly produce products for hydraulic and pneumatic solutions and also offer custom options to help customers reduce downtimes since it's everything from guide rings to radial shaft seals, gaskets, V-ring specials and piston seals and as well as wipers and rings.

Thank you for your time and interest listening to our Q3 presentation, which are available with the Report on our website. If you have any question or specific request, do not hesitate to contact us through our IR mail or by phone. Thank you very much once again.

Hi, and welcome to Momentum Group's Q&A session following our third quarter report. We will go through the most common questions that we have received this morning. With me are our CEO, Ulf Lilius; and CFO, Niklas Enmark. Let's get started.

The first question, sales for comparable units decreased by 4% during the quarter. September ended strong. Is that a sign that the market is turning? And when do you expect to see a recovery in organic growth? Ulf?

September was clearly the strongest month during the quarter, especially in pulp and paper and steel, where we also had some project deliveries during the end of the quarter. I think we shouldn't draw too big conclusions from 1 month. It was partly a catch-up effect after quite summer. But we feel that many customers are still a bit cautious and there is a high focus in price, which affected our product sales. During the quarter, we saw good demand for service and maintenance, which also benefited our gross margins. We do not expect a sharp recovery right away, but expect the group's customers to remain restrained until a more stable recovery occurs.

You mentioned that some macro indicators are turning more positive, but that customers remain restrained. Why do you think that difference exists? And when do you expect them to meet?

That's a good question. We do see some positive signals in leading indicators, but many of our customers are still very cautious. Industrial companies have been through several years of uncertainty, energy cost, supply chain disruptions, inflation, currency fluctuation and they're prioritizing stability in cash flow before new investments. One likely explanation to the positive indicators such as the PMI and also the actual industrial production is that some industries such as defense and energy related in Sweden, health care in Denmark and oil and gas in Norway have seen strong demand. Once the improvement becomes more visible and predictable also in our customer segments, we expect activity to pick up gradually, but it will probably be a step-by-step recovery during 2026 rather than a quick rebound.

Next question. Some other Swedish peers report positive organic growth, while momentum shows a small decline. Is that due to market exposure or something company specific?

Not knowing our peers in details. I think it's mainly about mix and exposure. We have a high exposure to sectors like automotive, mining and energy, which have been softer. Other peers are more exposed to sectors that have recovered a bit faster and more OEM as well as more sales outside Sweden. We have 80% of our sales in Sweden and our large aftermarket share and focus on traditional industry gives us stability, of course, but it also means that our recovery often comes up a little bit later when the market turns up. So I think it's really about timing and mix, not about company-specific issue.

Next question. In the Industry business area, you mentioned several project transactions completed towards the end of the period. What was the underlying sales trend, excluding these? And do you expect similar projects ahead?

If we look at industry, excluding those project transaction sales, sales would have been slightly weaker, but the overall activity level is quite stable. The product sale is a standard part in our offer, but the timing is different from year-to-year.

Next question is about business area Infrastructure. And regarding service utilization in infrastructure, which has impacted margins earlier, what visibility do you have for Q4?

Service utilization improved in Q3, particularly towards the end of the quarter. Q4 is normally a busy period for maintenance and service work. So we expect healthy capacity utilization in our operations. However, as we also have stated, demand is a bit sluggish and customers have pushed maintenance down the road early this year. So things can change based on the demand and production plans.

Another question. How is the stronger Swedish krona affecting your customers? And how are you positioning yourself? Also, how large is your exposure to export-driven industries today? Niklas?

Thank you, Ann, for that. A strong Swedish krona mainly affects some of our export-oriented customers in Sweden, for example, within automotive and metals, which we feel is also an explanation to the cautiousness among these customers regarding their own competitive situation and demand. Add to this also the turbulence from the tariffs in general and for sectors such as steel production. For us, the direct effect is quite limited since most of our business is Nordic and priced in local currency. A lot of our customers are ultimately dependent on export sales. But as we have expanded into infrastructure, which is more local, that share has decreased over time.

Acquisitions contributed about SEK 82 million to revenue in the quarter. How do the align with your expectations in terms of profitability and synergies? And how do you view the acquisitions market right now? Ulf?

The acquisitions we have done this year are performing well and already contributing positively to the earnings per share. They bring complementary expertise and strong entrepreneurs into the group and integration has gone smoothly. We're also seeing more collaboration between companies, which creates both operational and commercial opportunities. The acquisition market remains active, and we see an increase in inflow. Valuations are fairly stable and sellers continue to prefer long-term industrial owners like us. But with our solid balance sheet, we can continue at a good pace, but as always, we focus on quality before quantity.

And so the final question. Can you reach your 15% EBITA growth ambition this year without new acquisitions? You're currently at about 4% year-to-date. Niklas?

Our long-term target of 15% annual EBITA growth remains fully relevant. It is an average over time that combines organic and acquired growth. This year, the softer market has limited organic growth, but margins are solid and the acquisitions contribute well. What's important is that we maintain strong profitability and cash generation, which gives us the ability to continue investing and building for the long term.

Thank you. That was all for this report. If you have any further questions, please don't hesitate to contact us. You have the details here. Thanks for watching and for your interest in Momentum Group.