Momentum Group AB (publ) (MMGRF) Q3 2025 Earnings Call Transcript

Momentum Group AB reported strong Q3 2025 results, achieving a 7% revenue increase and its highest ever quarterly EBITA, despite a challenging and uncertain Nordic market. The company's profitability was bolstered by effective cost adjustments and significant contributions from six year-to-date acquisitions, which collectively added SEK 300 million in annual revenue and offset weaker comparable unit sales. While demand was subdued in sectors such as automotive and mining, Momentum Group noted stronger performance in the pulp/paper and steel industries, alongside improved sales trends in Finland.

Analysis

Momentum Group AB reported robust Q3 2025 results, achieving a 7% revenue increase and its highest ever quarterly EBITA, despite operating within a challenging and cautious Nordic market. This performance demonstrates resilience, particularly given the subdued demand observed in several industrial segments like automotive, metal, and mining. The company's strategic cost adjustments and strong contributions from recent acquisitions were crucial in offsetting weaker sales trends in comparable units.

The company's growth was significantly bolstered by its M&A strategy, with six companies acquired year-to-date contributing approximately SEK 300 million in combined annual revenue. While some sectors faced headwinds, Momentum Group noted stronger demand from the pulp and paper industry and the steel industry, alongside an encouraging sales trend in Finland. The quarter also saw a strong finish in September, compensating for lower activity levels during July and August.

The strongly positive sentiment and optimistic tone surrounding these results suggest effective management in navigating market uncertainties. The ability to deliver earnings growth and healthy profitability under challenging conditions, as highlighted by President & CEO Ulf Lilius, underscores the success of their operational and acquisition strategies. This indicates solid company fundamentals and a proactive approach to market dynamics.

Key Decisions for Investors

• Investors should consider Momentum Group's demonstrated ability to deliver earnings growth and record EBITA in a challenging market, supported by effective cost management and strategic acquisitions.
• Monitor the continued impact of M&A activities, specifically the integration and revenue contribution of the six acquired companies, as well as demand trends in key industrial segments like pulp/paper and steel.
• Evaluate the sustainability of profitability given the mixed sector demand and the potential for continued market uncertainty in the Nordic region.