Welcome to the presentation on 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 Q&As going forward, now to the highlights in our report. We continue to deliver earnings growth and healthy profitability despite the 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 EBITDA ever for a single quarter.
Year-to-date, six 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 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 EBITDA. Our acquisition strategy remains a central part of our growth model. During the year, we have carried out six 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 EBITDA through working capital ratio allows 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 periods 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 of continuously driving development forward and delivering long-term sustainable results. In parallel, we continue 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. EBITDA decreased by 9% to SEK 53 million , corresponding to an EBITDA margin of 13.4%. The business area's profitability measured as return on working capital amounted to 68%.
Within the group, we have two different business units, and the first one, Power Transmission, where sales fell slightly with lower EBITDA 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 EBITDA 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%. EBITDA increased by 35% to SEK 50 million , corresponding to an EBITDA margin of 14%. The business area's profitability measured as return on working capital amounted to 61%. In Flow Technology, one of the business units within this business area, comparable sales remained steady, while EBITDA 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 earnings. The group's EBITDA during the third quarter increased 7% to SEK 95 million, which makes this the best quarter yet in terms of EBITDA since the listing in 2022. The EBITDA margin reached 12.7%, where the EBITDA 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 EBITDA by 35%, as I mentioned, during the quarter, whereas Industry decreased by 9%. Besides the operational comments per business area, EBITDA was also affected by slightly higher depreciations than last year by roughly SEK 3 million and also a higher cost 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 1.1 Swedish krona for the quarter. A brief summary of the nine-month period that we reported: our revenue increased by 8% to about SEK 2.3 billion , where the organic development was - 2%.
The driver of net sales growth is thus acquisitions, which have added SEK 239 million to revenue. Currency effects and number of trading days combined contributed with about -1% to net sales. Per business area, net sales were stable in industry, where the organic change was -1.5%. In infrastructure, net sales increased by 33%, where organic change was about -1%. Our EBITDA increased by 4% to SEK 263 million, with an EBITDA margin of 11.4%, and where both business areas increased their EBITDA. Given this last quarter, our net sales rolling 12 months is now for the first time above SEK 3 billion. Our EBITDA is at SEK 333 million, which is almost twice as high as three and a half 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 receivable at the end of the period and thus impacted cash flow for the quarter in a negative way, combined with the fact that accounts payable 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 nine-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 zero. 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 earn-outs and call options of SEK 32 million , and net investments in non-current 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 these last 12 months, combined with working capital investments, dividends, and our CapEx, our operating 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 going forward.
And with that, I hand back to Ulf, where you will discuss the activities we take to continue to build the group. Thank you.
Now we'll give you some input about our journey and an example from one of our companies in our value chain that has production of 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 are today six listed companies, whereof five work with the same financial goals and with extensive experience in acquiring and developing leading niche companies with a long-term ownership approach, which have made a great development from SEK 24 million in market cap to SEK 180 billion . In the five years following our spin-off from Bergman & Beving, we quadrupled EBITDA and doubled revenue through 19 acquisitions. Through our industrial components, core business dropped to 15%.
Acquiring Swedol allowed us to form the Alligo , where focus entirely on industrial components and solution, and pursue our key financial goal of maintaining EBITDA through working capital above 45%. Our target is to increase EBITDA by at least 15% annually over a five-year time, aiming for SEK 340 million by the end of fiscal year 2026. The table shows we have reached EBITDA rolling 12 rate of SEK 333 million after three years and three quarters, and I'm confident we will attain 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 of 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 EBITDA 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 six so far this year. Nine of the acquisitions have been bolt-on.
In order to create the best condition for continued growth and to 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 five-year goal in EBITDA 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, assembling 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 are 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 five locations close to the customer, and we produce around 180,000 seals per year. MomSeal is part of a specialized company, Momentum Industrial, which also has 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 everything from guide rings to radial shaft seals, gaskets, V-ring specials, and piston seals, and as well as wipers and V-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 questions or specific requests, do not hesitate to contact us through our mail or by phone. Thank you very much once again.