Indutrade AB (publ)

Welcome and good morning on our behalf as well. We are glad to present another strong quarter. So let's start with the overall highlights.

Demand improved during the quarter for the majority of our companies, with the strongest order intake growth for companies with customers in the medtech and pharma area, within energy and also the engineering industry. Organic growth of plus 6%, with all five business areas improving and a book to build above one. Net sales growth 13% due to acquisitions and strong organic sales of 5%. EBITDA margins strengthened from 14.6% to 15.3% and our cash flow increased with 20%. We've been successful on the acquisition side with 13 acquisitions announced so far this year and the activity remains on a high level. Looking more specifically on the top line development, order intake improved in all the business areas and the majority of our companies. Despite Q3 normally being a weak book-to-bill quarter, it was slightly positive in this quarter at 101%, and this also despite the high sales level. Order backlog is now 11% higher than in the same period last year. However, as noted previously, the order book increasingly consists of longer lead time orders reflecting continued strong energy sector demand driven by AI and data center investments. In terms of sales, acquisitions contributed with plus 8%, a sequential improvement from the 6% we had in Q2, and currency movements had no impact in the quarter. The organic development was strong, plus 5%, benefiting from the increased order backlog development the last quarters. Three out of five business areas strengthened the EBITDA margin in the quarter with good operational leverage as the main driver in industrial and engineering and infrastructure and construction. Life science was on a strong level last year, but improved due to margin accretive acquisitions. Processed energy and water had margin improvements in many companies, but due to increasingly higher share of project deliveries, with slightly lower gross margins, the overall EBITA margin for the business area was basically unchanged. Technology and system solutions has a strong underlying profitability, but continues to be impacted by weak performance in a few project-oriented companies in the UK, as we have talked about before. Sorry, we missed the top line comments here, so I'll take them now instead. Or rather the organic sales development, so per major countries here. Moving into sales per market. Sales development in the Nordics was strong with a broad positive development in many companies and segments with companies within energy, infrastructure and process industry contributing positively fueled by data center build up in the Nordics. In the rest of Europe, Benelux and UK Ireland was flat from last year, but Germany and Switzerland and Austria was up mainly due to a broad general engineering improvement as well as good development for single use products for pharmaceutical production and companies with customers within energy. North America and Asia also improved with valves for power generation sales being strong in the US on the back of the booming data center market. Total EBITDA increased 19%, corresponding to an EBITDA margin of 15.3% compared to 14.6% last year. EBITDA margin was positively affected by the organic sales development continued with strong gross margin and margin accretive acquisitions. There have been continued price increases in many areas during the quarter, especially connected to freight and raw materials, etc. Our companies have done a really good job in passing price increases to the customers and protecting their gross margins. Looking at the sales development per business area, all business areas had organic growth in the quarter. Processed energy and water had the strongest growth of plus 6%, benefiting from the large order book built up the last quarters within mainly the energy segment. Life science and industrial engineering had a positive improvement in many companies, countries and segments. The single use business was the main driver for life science, but also many medtech companies improved. Encouraging to see a broad improvement in infrastructure and construction and technology and system solutions, although from somewhat easier comparables. Then we move into acquisitions. So far this year, we have welcomed 13 companies to Indutrade with a total annual turnover of 2.1 billion SEK, continuing the successful trend we have had now for over a year. During the quarter, we announced the two add-ons, Dorte Egelund and Albiox, and the electrification specialist Controlling in the Netherlands. In Q4, we have announced the acquisitions of the two life science companies Euromed and Synmed in Poland. We see Poland as an attractive market. It's a large domestic market and one of the fastest growing economies in the EU backed by strong funding and supporting industrial modernization with many family owned companies that would fit well within our group. We take strategic steps into new markets, and we have done so many times before. In Northern Italy, for example, we have established a platform for continued growth in the region. We are now taking a similar approach as we step up our efforts in Poland. We also announced the acquisition of the German company Schroener in Q4. It is the first acquisition for the infrastructure and construction business area in two years. as focus have been on organic improvements in that area. We are, however, always open for acquisitions when the right opportunity arises and Schradner is a good example of this. It's a non-cyclical company operating in a highly regulated niche with a strong position in the German fire protection systems market. We have a continued strong pipeline paving the way for a continued good acquisition pace going forward. The acquired EBITDA was on a record high level in Q3 as can be seen on the graph to the right at 112 million SEK. Also looking at the EBITDA margin of the acquired companies, it was on a margin accretive level of 18.3% for the quarter and close to 18% rolling 12 months. Good to note that this includes transaction costs so the underlying margin is even higher. By that, I turn over to Jan to comment more on our financials.

Thank you, Bo. I also want to add some comments to the year-to-date enrolling 12 months numbers and trends. Year-to-date order intake is up 10% and sales 8%, despite a slow start in the first quarter. Book-to-bill was positive also this quarter, giving us a good order book leaving the third quarter. Gross margin has improved during the year, which also indicate that our company has been successful in transferring price increases to our customers. EBITDA and EBITDA margin was strong, supported organic sales growth, improved gross margin, and margin-equitative acquisitions. Year-to-date, we are on a 14.5 EBITDA margin on a rolling 12-month at 14.2, which also is above our financial target. Return on capital employed improved from the 18% we had in 2025 up to a 19%, meaning that we are now closing the gap to our target of 20%. We then continue with the cash flow. We continue to manage our working capital that are on stable levels in relation to sales and operating cash flow improved 20% quarter on quarter and amounted to 1.2 billion SEK. Cash conversion continue to be in a high and stable levels and on a rolling 12-month basis the operating cash flow amounts to 4.3 billion SEK. The interest bearing net debt is declined compared to Q2 when we had the dividend but is up compared to the same period last year due to the increased acquisition pace. We have continued strong financial position with a net debt to equity ratio of 50% and net debt or EBITDA at 1.6. Tax rate was 22% for the quarter and 23% on a rolling 12-month basis. Finance net increased 23 million SEK or 23% quarter on quarter, mainly as an effect of our high acquisition pace. And last but very important, our earnings per share improved significantly in the quarter and was up 90%. and year-to-date were up 13% despite the slow start of the year. And it's really satisfying to see that the rolling 12-month trend is moving in the right direction. So by that, heading back to you, Bo, for some final takeaways.