Thank you very much, and welcome again. We had some technical difficulties, so we will restart the call again. We start again at page number two and look at the overall performance of the Lifco Group. We can then conclude that the third quarter is a solid quarter, despite some difficult market conditions in parts of our business, especially in System Solutions. In the third quarter, we grew net sales with 9%, of which 5% was organic growth, 8% growth came from acquisitions, and we had a negative foreign exchange rate effect of 4% in the quarter. EBITDA grew with 10%, and the EBITDA margin of 22.6% was slightly higher than the same quarter last year. We have very solid and strong cash flow in the quarter.
I would like to highlight, when we look at net profit, where we have a growth of 90%, that we had an impact of a one-time effect in this quarter, of about SEK 63 million, and this has to do with the revaluation effect on deferred taxes due to a decision in Germany that they will, in year 2028 onwards, gradually lower the German corporate tax rate. This is a one-time revaluation effect, so there will be no further impact of this tax effect in the coming years until 2028, where we will see gradual lowering of taxes in Germany. If we then look at the nine-month period, in 2025, we grew our net sales with 9%, of which 4% was organic growth. We had 7% positive impact from acquisitions, and then a negative impact of 3% from foreign exchange rates.
EBITDA grew with 7%, and margin for the nine-month period was 22.2%, which is slightly lower than the year before, due to weaker market conditions in parts of our System Solutions business, which has led to an organic decline in sales and lower margins in some areas of our business. We can then go over to page number three and look into the different business areas. If we start with Dental, it's overall quite stable development, which is not unusual for this area. For the full year, we had a small growth in profit and sales. Of course, we also had some negative foreign exchange effects dragging down those numbers. In Q3, we grew the profit with 9%, and margins were a bit higher than last year. I just want to highlight that there could always be variation between quarters, and we've seen that also historically.
I look more at the full-year performance here. In Demolition Tools, we have improved organically now in 2025, and this has to do with a quite weak development in 2024, so we see a comeback. This organic growth that we see in 2025 also leads us to improve margins because we have a positive operational leverage effect. When we have slightly higher volumes, we can also get normally better margins. The EBITDA margin of 25% for nine months is strong, but I also want to highlight that the market conditions are still not back to the levels we saw a few years back when we had our record years in this business area. If we go further down to System Solutions, we are growing with 14% for the nine-month period, but margin is slightly lower than previous year at 22.4%.
Once again, the main reason for our lower margin is that we are experiencing weaker market conditions throughout this year in some areas, which led to lower organic sales and then slightly lower margins organically in those companies. This is mainly in our Transportation Products and Special Products subdivisions, but also some other areas we experience this depending on what situation the companies are in. I also want to highlight that our companies, as always, are focusing very hard to now get back the margins to normal levels, despite not the perfect market conditions. I just also want to remind everyone that another reason for the lower margin in System Solutions for the nine-month period is that we, especially in the beginning of 2025, had a very strong organic sales growth in contract manufacturing, which is an area with slightly lower margin than the other parts of System Solutions.
We get sort of a little bit negative mix effect in this year in the numbers. We can go to page number seven and take a look at our financial position. Our interest-bearing net debt to EBITDA remains at low levels, at 1.3 x net debt to EBITDA. This is a number where we, despite the fact that we have done quite a number of acquisitions this year and had pretty good activity, are still having a very solid position when it comes to our opportunity to continue doing acquisitions. We will, as always, continue to look to find attractive opportunities to acquire good companies all around Europe that can contribute to the future development of our group. I would like to remind everyone, we focus on acquiring very high-margin companies with strong positions in small niches. We also keep our focus on staying disciplined and finding reasonable valuations.
This is always a difficult task, but we have historically done a good job. Once again, I remind everyone, the timing of acquisition when it materializes is always difficult to predict, and they will be a bit lumpy. So far, in 2025, we have had acquisitions carried out at pricing good levels. I also want to remind everyone that we are working very hard on continuously developing our organization so that we can do more acquisitions. Over the past five to seven years, we have grown our capacity to make more acquisitions with around, I would say, 10% every year. This, of course, is an area we will continue to work very hard on in the future so we can continue to develop Lifco step by step. With that comment, I would like to open up if there are any potential questions. Thank you.
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. The next question comes from Zino Engdalen Ricciuti from Handelsbanken. Please go ahead.
Yes, good morning, Per. Thanks for the presentation and taking your questions. I would like to start out in Demolition Tools. If you can nuance a bit in terms of, so to say, end markets, both in terms of products and geographies.
Yes. If we start, thank you for the questions, Zino. I think if we start with products, where we see maybe the most clear comeback in this year is obviously where we had the most difficulties last year. It's a typical effect we see. We had a quite difficult situation in 2024, especially when it came to the attachment business. I think they are now seeing improvement from those low levels. When it comes to the other areas, the more machinery-based equipment that we sell, it's a more mixed picture in this year, I have to say. We see in some areas quite good development and other areas more difficult development. That's a little bit more volatile area. Also, maybe a little bit an area where for some companies, tariffs can have an impact short term. The more uncertainty in the market makes customers wait, etc.
I think that's more on the product side. When it comes to geography, you would conclude that based on the first comment that the U.S. business is dropping dramatically this year, it's not really true because we see also a mixed picture. Some companies are still doing quite fine in the U.S. despite tariffs, so they're able to continue, whereas others are having more problems there. In Europe, I think the area where we, in general, and that's maybe not the Demolition Tools comment, the U.K. has been quite difficult, I think, this year in general. Germany has been difficult for a while, so that's maybe not the change in this year. That's basically maybe the markets that stand out. That's as much as I can mention on this question.
Very, very clear. Jumping into System Solutions, two questions for me. Firstly, quickly on contract manufacturing, if there are any new comments on how, so to say, your expectations in the quarter that we had from and comments from the clients.
As you maybe can read from the numbers, it was a quarter where we sort of roughly matched the last year when it was starting to pick up. It's an improvement from Q2, which we indicated also in the last journey's call. It looked a bit better in July. Just a comment on that. Right now, it feels that we're on a stable level compared to previous years when it picked up. Given the uncertainty that we saw also in Q2, we are very careful in making any promises around this area. You can say so far, so good, basically.
Yeah, very clear. If we look at System Solutions adjusted, so to say, for contract manufacturing, you highlighted some of maybe the weaker areas. Can you talk a bit about how the momentum in the business area adjusted for contract manufacturing feels? Of course, it's varied, but more in general.
Sorry, I couldn't really hear you. The question was about contract manufacturing or the other areas. Can you please repeat?
No, excluding contract manufacturing.
All right. There is a number of things that some companies are doing quite well, actually growing. They have their structural growth, and they continue with that in this year. We have some companies in the U.K., for example, companies that are more exposed to the U.K.. We see more reluctant markets in this year. Also, of course, some companies are impacted by tariffs, not in the way that we think we can sell in the future, but we have, for example, if you have a little bit bigger CapEx investment, it seems to be taking a longer time to close deals in the U.S. We're also impacting from that. I think in some other areas, it's just a general, a little bit weaker market in the industrial parts of Europe that also impacts us.
It's a combination of some companies dropping a little bit more, maybe due to this stopping the U.S. temporarily, and other companies just dropping a little bit because of slightly weaker market conditions in industrial parts of Europe. I would say, as I mentioned before, maybe a little bit more in the U.K. exposed in this year.
Just to follow up, you're mentioning quite a lot now impacts from tariffs. It would just be more interesting to hear more what your feeling is regarding the tariff situation and what the companies need to see for investments to pick up.
No, but it's good that you asked that question because I don't think, in general, we have a huge problem with tariffs. We haven't commented that specifically in the report, but some specific companies with maybe more higher CapEx investment products, they have a, you know, it takes a bit longer time to get that done because the customers are maybe a little bit reluctant to make a decision because of the uncertainty of if tariffs will be removed, etc. We also have companies in the U.S. where we are actually growing this year. I think it's, I don't want to overstate that the problem of the slightly lower margin in this year has to do only with tariffs. It's a bit mixed picture for us, actually, in the tariff situation.
I wouldn't make it too big of a point at this stage for Lifco, even though you have individual companies that are, there are maybe a few companies that have a really, really decline in the U.S., but it's marginal for Lifco overall. We have others that are growing quite well despite the fact that they have, of course, increased prices to compensate for tariffs, and they're still growing. It's a mixed picture for us.
Yeah. Very good. Thank you, Per. We'll get back in line.
Thank you very much.
As a reminder, if you wish to ask a question, please dial the pound key five on your telephone keypad. There are no more questions at this time, so I hand the conference back to the speakers for any closing comments.
Thank you very much for listening. We apologize for the technical issues and hope that it worked anyways. I wish everyone a good day and eventually a good weekend. Thank you.