Sales of SEK 40,771 M rose 7% — 4 points organic, 2 acquired, 1 currency — and EPS rose 14% to SEK 4.24 from SEK 3.73. No consensus estimate was available, so the print stands against the prior-year quarter.
Record profitability from operating leverage, not one-offs: EBIT of SEK 7,102 M up 11% at a 17.4% margin from 16.8%, EBITA margin 18.7% from 17.9%, gross margin 43.8% from 43.1%.
Growth was lopsided. Americas organic growth of 6% at a 19.6% margin (18.5%) and EMEIA 5% at 15.8% (15.0%) carried the quarter, while Asia Pacific fell 1% and Entrance Systems grew 3% with margin down to 17.1% from 17.4%.
The fourth-quarter guide is 2% from acquisitions on sales, dilutive to margin, and a 5% currency effect, slightly accretive — plus an eleventh Manufacturing Footprint Program with no cost attached.
The one thing that matters: the margin record was earned in Opening Solutions, while Entrance Systems — the largest division at SEK 13,502 M of sales — grew 3% organically with margin down to 17.1% and net capital expenditure of SEK 730 M against SEK 142 M.
Key metrics
Metric
Reported
Prior year
Change
Organic sales growth
4%
3%
—
Operating income (EBIT)
SEK 7,102 M
SEK 6,416 M
+11%
Operating margin (EBIT)
17.4%
16.8%
+60 bps
Gross margin
43.8%
43.1%
—
Operating cash flow
SEK 7,405 M
SEK 6,969 M
6%
Cash conversion
1.17
1.25
—
Guidance changes
Item
New guidance
Prior guidance
Effect of completed acquisitions and divestments on Q4 2026 sales (rolling 12-month basis as of September 30, 2026)
2%
—
Weighted currency effects on Q4 2026 sales (based on currency rates on September 30, 2026)
5%
—
New Manufacturing Footprint Program (11th) launch
during the fourth quarter of 2026
—
Quality of earnings
The quarter is unusually clean, and that is the finding. Items affecting comparability were nil against SEK 13 M a year earlier, and the average share count is unchanged at 1,110,776 thousand — the 14% EPS growth is neither an add-back nor a buyback.
Cash covers earnings but grew slower than profit: operating cash flow of SEK 7,405 M ran 1.57 times net income of SEK 4,718 M, up only 6% against 11% EBIT growth, with conversion at 1.17 from 1.25 as net capital expenditure doubled to SEK 1,106 M.
Part of the EPS step came from financing: net financial items improved to SEK -768 M from SEK -853 M, lifting income before tax 14% to SEK 6,333 M against 11% EBIT growth.
Gotchas & watch items
The largest division is stepping back as the group sets records: Entrance Systems organic growth slowed to 3% from 4% and margin fell to 17.1% from 17.4% despite 4 points of acquired growth, with division cash flow down to SEK 1,844 M from SEK 2,336 M.
Underlying leverage beats the reported margin: amortization from business combinations rose to SEK 510 M from SEK 399 M, so EBITA margin gained 80 bps against 60 bps at EBIT.
The currency guide is a reversal: exchange rates took 4% off nine-month sales and held group growth to 1% for the period, against a 5% effect guided for the fourth quarter.
A restructuring charge is signalled but unsized: the eleventh footprint program launches in the fourth quarter against SEK 248 M of remaining provisions; items affecting comparability totaled SEK 1,513 M in 2025.