Instalco

New organization lays the foundation for positive development

July – September 2025

• Net sales decreased by 3.7 percent and amounted to SEK 3,028 (3,144) million. The organic change, adjusted for currency effects, amounted to -3.3 (-5.0) percent.
• EBITA amounted to SEK 180 (188) million, corresponding to an EBITA margin of 6.0 (6.0) percent.
• Operating profit (EBIT) amounted to SEK 148 (149) million.
• Cash flow from operating activities amounted to SEK 133 (119) million.
• Earnings per share before dilution were SEK 0.24 (0.32) and after dilution were SEK 0.24 (0.32).

January - September 2025

• Net sales decreased by 2.5 percent and amounted to SEK 9,832 (10,082) million. The organic change, adjusted for currency effects, amounted to -2.1 (-6.2) percent.
• EBITA amounted to SEK 528 (683) million, corresponding to an EBITA margin of 5.4 (6.8) percent.
• EBITA not including items affecting comparability amounted to SEK 603 million, which corresponds to an EBITA margin of 6.1 percent.
• Operating profit (EBIT) amounted to SEK 428 (563) million.
• Cash flow from operating activities amounted to SEK 559 (475) million.
• Earnings per share before dilution were SEK 0.82 (1.17) and after dilution were SEK 0.82 (1.17).
• One acquisition was made during the period, which, on an annual basis, contributes an estimated total sales of SEK 55 million.

Comments from CEO Per Sjöstrand:

We are disappointed in our result for the third quarter. It is not enough to simply wait for better times. We need to act on what we actually can impact. Considering the market challenges of recent years, it is clear that our actions have not been decisive enough. That time is now over. We need clearer priorities and more action-driven leadership. This is now at the top of our agenda.

Margin, margin, and yet again margin

Our goal is an EBITA margin of a least 8 percent and that is our top priority. But we do not need a new model to get back there. Instead, we must refine the existing one by strengthening planning and risk management, along with ensuring that there is clear accountability at all levels of the organisation.

The new country-based organisation that we implemented during the quarter represents an important step in that direction. It provides a clearer structure and stronger foundation for achieving and maintaining our margin goal over time. A COO function has been established under each country manager, with responsibility for strengthening the culture of continuous improvement. We will also be introducing a mentorship programme, through which experienced leaders from our most successful companies will coach the CEOs of subsidiaries that are not yet performing in line with our expectations. We are strengthening collaboration and the exchange of knowledge and experience across each country, while continuing to foster local entrepreneurship – a cornerstone of the Instalco business model.

The organisational change is accompanied by an updated operating model that clarifies how we implement the strategy in practice. The focus is on efficiency and margin improvement, with each company expected to demonstrate clear, gradual progress over time. We are now establishing a Group-wide framework for operational activities, which defines the fundamental level each company must achieve.

Our philosophy is still grounded in autonomy with accountability. Now, however, accompanied by much stricter requirements and more rigorous follow-up.

Development of the acquisition agenda

We are well aware that our current leverage exceeds our own target. This is why we have kept a close eye on cash flow and a firm focus on resource efficiency across the entire Group during the year. It is also why we have deliberately held back on new acquisitions for a period, aiming to gradually strengthen the balance sheet and safeguard our financial flexibility over the long term.

Furthermore, we are preparing for the next phase, which involves fine-tuning our acquisition agenda. Our focus is not on volume, but on industrial logic – doing business and making acquisitions that make the whole stronger than the sum of its parts. We remain a company that builds and grows, yet always selectively and with a firm focus on long-term profitability.

Our establishment in Germany is based on precisely that logic: to grow where we see strong demand and can contribute with quality and efficiency. Our German platform, Fabri, is growing strongly and it confirms the attractiveness of the German installation market. Since our last report, a further three companies have been acquired, expanding the platform to 20 companies with broad geographic coverage and stable profitability.

Instalco currently owns 24 percent of Fabri, which is the first step in our multi-phase model. It gives us a foothold where there is growth and the capacity, over time, to take the next steps in our ownership.

Five years of Intec proves the power of organic expansion

Growth and expansion also occur organically. Our technical consulting company, Intec, is a great example of this, and we celebrated its fifth year of operation during the quarter. When it was established in 2020, the aim was to complement the installation side of the business with design, project planning, and technical consulting, thereby engaging with customers already in the earliest stages of a project. Intec emerged from Instalco’s start-up model, serving as an organic complement to our otherwise acquisition-driven growth. Five years later, it has grown to around 500 employees, with 5,000 customers and around 40 offices in the Nordics. Intec consistently delivers margins above the Group average. It has evolved from a mere concept into an important component of Instalco's offering – a clear example of how entrepreneurship and collaboration can generate new areas of growth within the Group.

Moving forward with drive and a clear direction

I have great confidence in the future. We move into the next phase with a clear focus, which involves harnessing the power of our entrepreneurship and raising the bar in how we lead and operate our companies. Step by step, we will strengthen our profitability and the Group’s long-term value. This is something we must achieve irrespective of current market conditions. At the same time, we note that the long-term drivers in the installation sector remain strong, and our expanding order backlog suggests a gradual improvement.

The expertise, enthusiasm, and commitment within our organisation convince me that, together, we will turn the tide and once again demonstrate why we are best in class.

Presentation of the report
The report will be presented in a telephone conference/audiocast today, 24 October at 09:30 CET via
https://instalco.events.inderes.com/q3-report-2025

To participate by phone, register via
https://events.inderes.com/instalco/q3-report-2025/dial-in

For further information:
Per Sjöstrand, CEO
Christina Kassberg, CFO, christina.kassberg@instalco.se
Mathilda Eriksson, Head of IR, mathilda.eriksson@instalco.se +46 (0)70-972 34 29