Addtech reported third-quarter results that highlighted a divergence between top-line growth and profitability. The Swedish industrial technology group recorded sales of SEK5,556 million for the quarter, a 1.4% increase from the prior-year period. That topline figure was marginally below sell-side expectations - 0.2% under Kepler Cheuvreux's estimate and 0.5% below consensus.
Organic expansion for the period was 1%, aligning with Kepler Cheuvreux's projection of 0.9% but trailing the consensus estimate of 1.5%. The contrast between modest organic growth and stronger margin performance defined the quarter.
On the profitability side, Addtech reported an EBITA of SEK864 million, up 9.4% year on year and ahead of both Kepler Cheuvreux and consensus forecasts by 4.4% and 3.6%, respectively. The company delivered an EBITA margin of 15.6%, up from 14.4% in the comparable quarter. That margin beat the 14.9% estimate implied by both Kepler Cheuvreux and consensus. Management cited the Energy segment as the primary contributor to margin improvement, attributing gains to a favorable product mix and strong operating leverage.
In the same release, Addtech disclosed the acquisition of RAMME, which generates annual sales of EUR38 million. The deal will see RAMME integrated into the Mobility segment within Addtech's Electrification business area. Company guidance indicates that RAMME's sales represent approximately 1.9% of Addtech's projected 2025 sales.
Overall, the quarter presents a picture of controlled margin progression driven by segment-level dynamics, even as revenue growth remains slightly short of external expectations. The results underscore a disparity between underlying organic demand metrics and the company's ability to convert revenue into improved operating profit in certain business lines.