Q3 2025 Note AB (publ) Earnings Call Transcript
Key Points
- Note AB (LTS:0GSS) achieved a 6% organic growth in sales, despite a 3% negative currency effect.
- The company reported a strong profitability of 9.3% for the third quarter, which is typically their weakest quarter.
- Earnings per share increased by 26% compared to the previous year, indicating strong financial performance.
- Note AB generated SEK121 million in cash flow for the quarter, contributing to a total of SEK1 billion over the last 24 months.
- The acquisition of Caston Electronics is expected to positively impact profitability and strengthen Note AB's position in the defense sector.
- Sales growth of 6% was at the lower end of expectations, indicating challenges in achieving higher top-line growth.
- The UK operations are underperforming, with a 34% negative growth, posing a significant challenge for the group.
- The industrial segment showed only a 1% growth in the third quarter, reflecting sluggish performance among some customers.
- The security and defense segment experienced a decrease in growth for the quarter, which was below expectations.
- Communication segment continues to face delays and pushouts from customers, affecting growth potential.
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Good morning everyone and welcome to Note the third-quarter presentation.
How do we, what is the overview of this quarter? If we move to my first slide, we can see, okay, sales came in at SEK830 million, that corresponds to 6% organic growth, where we had a 3% negative of currency effects.
Our profitability, 9.3%. I think that's very good for the third quarter. Normally the third quarter is our weakest quarter, both in terms of sales and in terms of profitability.
I think that is, if we stay on that number for a while, we are running now at 9.9% for the for the trailing 12 months in underlying OP. Our target is 10%, and we managed to do that in a flat environment. I think that is really strong.
And I have to be clear with what we do internally. It's what do you call it a daily fight about costs. How do we continue to be cost efficient? How do we continue to ensure that we deliver the results that we are targeting.
So I'm very
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