Hi, 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? 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 conclusion from one month. It was partly a catch-up effect after a quiet summer. We feel that many customers are still a bit cautious, there is a high focus on 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, that customers remain restrained. Why do you think that difference exists, when do you expect them to meet?
That's a good question. We do see some positive signals in leading indicators, 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, they're prioritizing stability and 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, healthcare 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. 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. 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 would have been slightly weaker, the overall activity level is quite stable. The project sale is a standard part in our offer, the timing is different from year- to-y ear.
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, 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, 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 Charlotte. 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, 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 these align with your expectations in terms of profitability and synergies? 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 are also seeing more collaboration between companies, which creates both operational and commercial opportunities. The acquisition market remains active. We see an increase in inflow. Valuations are fairly stable, and sellers continue to prefer long-term industrial owners like us. With our solid balance sheet, we can continue at a good pace, as always, we focus on quality before quantity.
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.