BICO Group AB (publ) (BCCOY) Q3 2025 Earnings Call Transcript

BICO Group AB reported Q3 2025 net sales of SEK 387 million, achieving 12% organic growth, and an adjusted EBITDA of SEK 17 million (5% margin), reflecting improved cost control and operational efficiencies. The Lab Automation segment notably surged 35% organically, securing a USD 15.2 million order for its Biosero software from a global pharma company, while Life Science Solutions grew 4%. Strategically, BICO finalized the divestment of MatTek and Visikol for SEK 740 million, significantly strengthening its cash position to SEK 1,241 million, and recognized SEK 1,036 million in non-cash impairments for Discover ECHO and Biosero due to revised forecast models and lower 2025 trading, though it anticipates 10% long-term CAGR for these units. The company continues to execute its BICO 2.0 strategy, prioritizing lab automation, R&D innovation, and operational excellence amidst ongoing macroeconomic funding headwinds.

Analysis

BICO Group reported Q3 2025 net sales of SEK 387 million, achieving 12% organic growth, and an adjusted EBITDA of SEK 17 million (5% margin), a 3 percentage point year-over-year improvement from cost control. The Lab Automation segment surged 35% organically, securing a USD 15.2 million Biosero software order from a global pharma company, while Life Science Solutions grew 4%.

The company strengthened its balance sheet by divesting MatTek and Visikol for SEK 740 million, boosting cash to SEK 1,241 million and reducing convertible debt. Non-cash impairments of SEK 1,036 million for Discover ECHO and Biosero resulted from revised forecasts, though 10% long-term CAGR is still projected for these units.

BICO continues its BICO 2.0 strategy, prioritizing lab automation and R&D innovation. Management expects to scale Biosero's cost base efficiently in 2026, targeting higher EBITDA margins, with the global framework agreement offering future order potential.

Despite these positives, macroeconomic challenges and extended sales cycles persist. Consistent new order intake is crucial to sustain growth, given the front-loaded revenue recognition of large projects.

Key Decisions for Investors

• Monitor the Lab Automation order pipeline and Biosero's operational scaling for sustained growth and margin expansion, given the front-loaded revenue recognition profile of large projects
• Evaluate the ongoing impact of macroeconomic headwinds and funding constraints on sales cycles and future growth rates
• Assess the company's strengthened balance sheet, including its significant cash position and reduced convertible debt, as a key factor for financial resilience