Third quarter of 2025

• Net sales increased by 2.0 percent to SEK 1,917 million (1,880). Organic growth was 1.4 percent, and order intake was in line with net sales.
• Adjusted operating profit (EBITA) amounted to SEK 272 million (239), corresponding to an operating margin of 14.2 percent (12.7).
• Operating profit (EBITA) totalled SEK 264 million (258), with an operating margin of 13.8 percent (13.7).
• Earnings per share were SEK 0.75 (0.77).
• Cash flow from operating activities amounted to SEK 293 million (322), corresponding to a cash conversion of 108 percent (121).
• Net debt/EBITDA, adjusted, was 2.3 (2.4).

January – September 2025

• Net sales decreased by 0.5 percent to SEK 6,140 million (6,171). Organic growth was 0.3 percent, and order intake was slightly below net sales.
• Adjusted operating profit (EBITA) amounted to SEK 818 million (759), corresponding to an operating margin of 13.3 percent (12.3).
• Operating profit (EBITA) totalled SEK 817 million (781), with an operating margin of 13.3 percent (12.7).
• Earnings per share were SEK 2.51 (2.32).
• A share split was carried out during the period, whereby each share was divided into five new shares (share split 5:1).
• Cash flow from operating activities amounted to SEK 701 million (974), corresponding to a cash conversion of 84 percent (119).

CEO’s overview
I am very pleased with our performance in the quarter. Throughout the year, we have continued to deliver on our strategy, with a strong focus on creating value for our customers, which continues to yield results. Altogether, this has led to eight consecutive quarters of gradually improving our gross margin and a very strong result in the third quarter.

We remain active in the market and, for the first time in two years, achieved positive organic growth. During the quarter, we secured several promising customer projects in key industries such as defence, infrastructure and in general industry. However, market conditions remain subdued, and we are focusing on what we can influence to put ourselves in a strong position once the market rebounds.

Strong results in an uncertain market
Net sales amounted to SEK 1,917 million, corresponding to organic growth of 1.4 percent compared to the same period last year. The organic growth was primarily driven by increased market shares but also by price increases driven by tariffs in the US. Market conditions remain uncertain, with significant variations depending on geography and customer segment. Among the larger segments, demand was strong in energy, agriculture and food, medical technology and pharmaceuticals, defence, and machinery manufacturing. Demand in the mobile home and trailer market and for electronics remained stable, while the market situation in construction, furniture and interior design, as well as the automotive industry, remained weak.

Both the gross margin and the adjusted operating margin increased compared to the same period last year and reached very high levels. Region Americas, in particular, delivered a strong result during the quarter, mainly due to general price adjustments, effects from the tariffs, and a lower cost base driven by the divestment of a small manufacturing unit within Component Solutions Group. The adjusted operating margin reached 14.2 percent (13.4), which is in line with our financial target for 2026. The underlying cost level was in line with last year, and we continue to maintain a strong focus on cost control throughout the organisation while also investing in growth.

New major defence contract
During the quarter, we secured several new customer contracts across key segments. I am especially pleased with the framework agreement signed with the international defence, aerospace, and security company Babcock in the UK. This agreement marks an important milestone for Bufab, not only because they chose us for our innovative logistics solutions and sustainability work, but also because Babcock is a major global defence company. We will integrate our digital solutions on-site at Babcock and have also developed new customer-specific logistics solutions.

Creating value through sustainability
We continue to place strong emphasis on creating value through sustainability. We have developed a new sustainability offering that will be rolled out during the year. We have also invited customers to our Sustainability Days, where we exchange experiences and explore new perspectives on sustainability in the supply chain, an initiative that has been met with great interest. We are successfully gaining market share through our comprehensive offering and sustainability efforts, and we are therefore especially pleased to have recently been awarded the EcoVadis Platinum Rating, a strong recognition of our sustainability work.

Acquisition of novia Group
We are very pleased to have completed the acquisition of novia Group in early October. novia Group is a German provider of global sourcing solutions with annual net sales of approximately EUR 50 million. Like Bufab, novia Group offers its customers “peace of mind,” but with a stronger downstream customer integration and expertise in areas such as assembly solutions. With its attractive position in the value chain and strong customer offering, novia Group brings important new capabilities to Bufab. Over the past year, it has demonstrated strong growth and operating margin. The acquisition aligns well with our strategy and may serve as a platform for future add-on acquisitions.

Outlook and priorities
We continue to face an uncertain global environment with significant variations across geographies and customer segments. However, this does not affect our priorities going forward. We will continue to execute on our strategy, focusing on the areas we can influence: gaining market share, gradually improving our gross margin and cost base, and delivering strong cash flow. This will put us in a strong position when the market turns. So, despite the great uncertainty in the world, we remain optimistic about the future and confident in our ability to create value for our customers and deliver continued profitable growth for our shareholders.

Finally, I would like to thank all the fantastic employees at Bufab whose dedication and expertise truly make a difference for our customers.

Erik Lundén
President and CEO

Conference call
A conference call will be held on 24 October 2025 at 10:00 a.m. CEST. Erik Lundén, President and CEO, and Helena Häger, acting CFO, will present the results. Analysts and investors who wish to ask questions are asked to connect to the presentation via the following Teams link: Click here to join the meeting and use the “Raise Your Hand” function during the Q&A session.

Bufab AB (publ)
Box 2266
SE-331 02, Värnamo, Sweden
Corp. Reg. No. 556685-6240
Phone: +46 370 69 69 00
www.bufabgroup.com