NOTE Posts Interim Report Q3 2025

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NOTE AB reported renewed growth and continued strong profitability in Q3 2025, with sales rising to SEK 830 million and an adjusted operating margin of 9.3%. The company’s solid cash flow and improved performance reflect its resilience and readiness to capture future market opportunities despite ongoing economic uncertainty.

NOTE's interim report Q3 2025

Financial development during July-September

• Sales amounted to SEK 830 (809) million. Organic growth was 6% adjusted for currency.
• Operating profit amounted to SEK 74 (64) million. Adjusted operating profit amounted to SEK 77 (67) million, adjusted for revaluations of operating assets and liabilities in foreign currencies.
• Operating margin amounted to 9.0% (8.0%). Adjusted operating margin amounted to 9.3% (8.3%).
• Profit after net financial items amounted to SEK 67 (55) million.
• Profit after tax amounted to SEK 54 (43) million, which corresponds to SEK 1.92 (1.52) per share.
• Adjusted for items affecting comparability, such as investments in the property in Torsby and for acquisition-related payments in the comparison period, operating cash flow amounted to SEK 121 (157) million. Total cash flow after investments amounted to SEK 105 (120) million, which corresponds to SEK 3.69 (4.21) per share.

Financial development during January-September

• Sales amounted to SEK 2,813 (2,876) million. Organic growth was 0% adjusted for currency.
• Operating profit amounted to SEK 268 (254) million. Adjusted operating profit amounted to SEK 271 (256) million, adjusted for revaluations of operating assets and liabilities in foreign currencies and for provisions for restructuring of the English operations in the first quarter of this year of SEK 18 million.
• Operating margin amounted to 9.5% (8.8%). Adjusted operating margin amounted to 9.6% (8.9%).
• Profit after net financial items amounted to SEK 243 (219) million.
• Profit after tax amounted to SEK 196 (175) million, which corresponds to SEK 6.84 (6.06) per share.
• Adjusted for items affecting comparability, such as investments in the property in Torsby and acquisition-related payments in the comparative period, operating cash flow amounted to SEK 379 (398) million. Total cash flow after investments amounted to SEK 317 (341) million, which corresponds to SEK 11.13 (11.97) per share.

CEO's comment – ​​It is gratifying that we can now report the growth we have seen ahead of us for some time. The growth is reflected in our profitability, which continues to strengthen - from an already high level.

" It is pleasing to report that we are delivering growth in the third quarter. We have seen the turnaround coming for some time, but geopolitical tensions, an uncertain economy and changing trade conditions have affected our and many other industries, delaying the recovery. Growth is at the lower end of our expectations, but we know that when the economy and demand grow stronger, we are well positioned to meet it."

The third quarter's sales of SEK 830 million represent organic growth of 6%. We have an organization with a proven ability to combine quality, flexibility and profitability. Now that we are achieving growth, we see that our profitability is strengthening - and from an already high level. The quarter's underlying operating margin of 9.3% shows that our continuous improvement efforts are paying off.

Continued high profitability combined with an effective development of working capital utilization meant continued strong cash flows, where we saw SEK 121 million in operating cash flow for the quarter and the equivalent of SEK 379 million for the year. In recent years, we have invested heavily in both capacity and capability to stay one step ahead and be able to meet our customers' increasingly high demands for quality, flexibility and efficiency. At the end of the quarter, we made our single largest investment for NOTE when we signed an agreement to acquire the British EMS supplier Kasdon. The deal, which is expected to be completed at the beginning of Q4, strengthens our position in the British market and adds strategic breadth within a segment with high demand. Kasdon has ambitious growth plans in the coming years combined with high profitability.

The market remains cautious, leading to a cautious attitude among customers that is delaying the recovery. A more uncertain market situation means that many customers are holding back on placing orders. Adjusted for currency, the total order backlog is unchanged compared to the previous year. Overall, we expect sales in the fourth quarter in the range of SEK 1,000 - 1,050 million, which includes a negative currency impact of SEK 30-40 million, with an operating margin in the range of 10.0-11.0%. Given the positive drivers for the industry, our strong position as an EMS partner and an efficient organization, we are ready to meet the demand that is coming forward,” says Johannes Lind-Widestam, President and CEO.