CEO Review

The third quarter was marked by a record-high comparable operating profit margin of 13.8 percent, driven by Services and improved efficiency. Despite persistent global market uncertainty, indecisiveness and delayed decision making among some customers, we ensured a solid performance.

The market activity in the quarter was in line with our previous expectations of a slightly softer environment in the second half, especially in the Americas. Orders received decreased to EUR 375 (416) million, reflecting the current environment and differences between the regions and end customer segments. While Services order intake was strong across the service portfolio, the Equipment order intake was impacted by both delayed decision making and timing of larger orders.

While the underlying demand remained mostly stable, it continued to be subdued in the Americas, consistent with the previous quarter. Demand in Europe has been strong, however, the decline in Q3 was explained by timing of larger orders. AMEA4 demand has remained stable.

Trade tensions and tariffs continue to create uncertainty, leading to varied regional development as also the data from our connected equipment of our customers' fleets show. However, based on external indicators, the market seems to be more resilient than previously anticipated. In addition, our solid order book provides a strong foundation moving forward.

Our financial performance remained solid. Sales continued to grow to EUR 436 (425) million, resulting in a comparable operating profit of EUR 60.0 million. Cash flow from operations before finance items and taxes amounted to EUR 25.6 million, with our last twelve months cash conversion being at 75 percent. Net debt has decreased by 14 percent during the last twelve months to EUR 84 million and our leverage ratio is at a healthy level of 0.3x. Our Driving Excellence initiative continues to deliver, securing approximately EUR 24 million in annualised gross efficiency improvements in 2025 so far, largely from successful sourcing activities.

During the third quarter, we continued to execute on our strategy for sustainable growth. We secured important orders, reflecting customer trust and satisfaction in our innovative and sustainable portfolio. Key milestones on our sustainability and innovation roadmap included the launch of the 5-year Move2Green program funded by Business Finland, and the commencement of construction for our new test center at our innovation centre in Ljungby, Sweden, which will support the acceleration of our electric and autonomous product development. Our commitment to sustainability was further recognised with an EcoVadis gold medal, placing us in the top 5 percent of all rated companies.

We are also pleased to note the progress in our eco portfolio, with the fully electric share of total equipment orders for the last twelve months (LTM) increasing slightly to 11 percent, reflecting growing customer adoption of our sustainable solutions.

As we look ahead, global market uncertainty, particularly the evolving trade policy landscape, remains a key focus. Our teams worldwide are dedicated to managing this dynamic environment while diligently executing our strategy. Our strategic priorities are clear: we will continue to grow our services business, enhance operational and commercial excellence to drive profitability and invest in sustainable innovations to secure future growth and maintain our competitive edge. 

Kalmar, interim report January–September 2025, 31 October 2025