FULLTEXT DEL 1 AV 1
Kvartalsrapport Q3 2025
===== SIDA 1 =====
Interim Report Q3
JANUARY – SEPTEMBER 2025
Focus on profitability
Third quarter: July - September
• Net sales amounted to 277 MSEK (331)
• Order intake amounted to 222 MSEK (285)
• Order backlog increased by 4 percent to 1,377 MSEK
(1,329)
• Adjusted operating profit (EBITA) amounted to 3 MSEK
(17)
• Adjusted operating margin amounted to 1,1 percent (5.0)
• Result after tax amounted to -5 MSEK (1)
• Adjusted result after tax amounted to -5 MSEK (5)
• Result per share amounted to -0,23 SEK (-0.03)
• Adjusted result per share amounted to -0,23 (0.14)
• Operating cash flow amounted to 3 MSEK (-1)
The interim period: January– September
• Net sales amounted to 924 MSEK (1,031)
• Order intake amounted to 1,016 MSEK (1,017)
• Adjusted operating profit (EBITA) amounted to 6
MSEK (52)
• Adjusted operating margin amounted to 0,7 percent
(5.0)
• Result after tax amounted to -34 MSEK (7)
• Adjusted result after tax amounted to -10 MSEK (18)
• Result per share amounted to -1,53 SEK (0.12)
• Adjusted result per share amounted to -0,46 (0.61)
• Operating cash flow amounted to -26 MSEK (81)
Events during the quarter and after the end of the quarter
• Andreas Lindberg is employed in the newly established position of Director of Business Development & Head of IT Balco
Group, starts November 1, 2025.
• Viktor Arvidsson has been hired as the new CFO and Head of Investor Relations, starts Q1-2026.
• Michael Grindborn, CFO and Head of Investor Relations, leaves his employment with the company in connection with the
Q3 report.
• Joakim Petersen-Dyggve, CEO of Riikku Rakenteet Oy, leaves his employment on 30 November. Joakim has been a mem-
ber of Group Management. A successor has been recruited, but will not initially be part of the Group Management.
• First order taken in Germany with glazing system from Riikku.
Jul-Sep Jul-Sep Jan-Sep Jan-Sep Oct-Sep J an-Dec
MSEK 2025 2024 2025 2024 2024/ 25 2024
Net sales 276,8 331,0 923,8 1 031,5 1 310, 2 1 417,9
Order intake 221,8 285,5 1 016,2 1 017,2 1 375,8 1 376,8
Order backlog 1 376,7 1 328,8 1 376,7 1 328,8 1 376,7 1 309,3
Adjusted operating profif (EBITA) 2,9 16,6 6,4 51,5 24,4 69,6
Adjusted operating margin (EBITA), % 1,1 5,0 0,7 5,0 1,9 4,9
Net result for the period -4,8 0,9 -34,2 6,7 -36,4 4,6
Adjusted net result after tax -4,8 4,9 -9,6 18,0 -3,5 24,1
Operating cash flow 3,3 -1,4 -25,5 80,8 32,1 138,5
Earnings per share, SEK before dilution -0,23 -0,03 -1,53 0,12 -1,61 0,05
Earnings per share, SEK, after dilution -0,23 -0,03 -1,53 0,12 -1,61 0,05
Adjusted earnings per share, SEK, before and after dilution -0,23 0,14 -0,46 0,61 -0,18 0,89
"First order taken in Germany with the Finnish brand Riikku"
"Balco Group strengthens Group Management in the strategic work with our brands and offerings with An-
dreas Lindberg taking up the newly established position as Head of Business Development "
- Camilla Ekdahl, President and CEO
===== SIDA 2 =====
2 | Balco Group Interim Report 1 January - 30 September 2025
Focus on profitability
Order intake for the quarter is slightly lower than in the cor-
responding period last year, but the positive trend remains.
The last two quarters together show an increase of 11 per-
cent.
The Swedish balcony market continues to show an increased
level of activity. A few projects in our pipeline have been
postponed for decision during the quarter, but interest from
customers remains. We therefore see good conditions for
these projects to make a positive contribution to order intake
at the end of the year.
An important step forward during the quarter is that Balco
has received its first orders in Germany with glazing systems
from our Finnish balcony company, Riikku. This marks a stra-
tegic step in our ambition to broaden the product portfolio
and strengthen our position in the German market. By com-
plementing the premium Balco brand with Riikku's glazing
solutions, we will be able to reach new customer segments
and increase our market penetration.
To further strengthen the strategic work with our brands and
offerings across company and market boundaries, Balco
Group has recruited Andreas Lindberg to the newly estab-
lished role of Business Development Manager & Head of IT
for the Group. Andreas has a long and broad experience
from senior positions in industry, sales and business devel-
opment.
Sales in the quarter continued to be affected by the delays
we had for the start -up of projects earlier this year, which
affected both earnings and cash flow in the period. Some of
these projects were able to start at the end of the quarter but
have not had time to have a positive effect on the quarter's
earnings.
The structural measures launched earlier in the year have
continued to be implemented according to plan. We now see
that the cost reductions are starting to have an effect, even
though profitability has not yet reached a satisfactory level
as sales during the quarter have been too low. The work to
streamline and optimize operations continues unabated,
with the aim of creating a long -term stable and profitable
foundation for the Group's growth.
Market situation
The trend of increased activity in the Swedish renovation
market is continuing. Several projects, which have been
dormant for some time, have been brought back to the fore
and taken up for further discussions and planning. This is a
positive sign of a gradually improving market in the seg-
ment. For the new construction market in Sweden, the situ-
ation remains strained, but we note a slight increase in the
number of incoming inquiries in both the balcony and fa-
çade segments. This development indicates a growing in-
terest in starting new projects.
In the Norwegian market, we are continuing to work on a
number of major interesting renovation projects. However,
the new production market in Norway remains weak, and
Balco is therefore not prioritizing actively working with re-
sources at this time.
The Danish balcony market remains challenging. Inquiries
and projects exist, but the long decision-making processes in
both tenant-owner associations and authorities have a neg-
ative impact on operations. The work to strengthen efficiency
and profitability continues.
In Finland, the recovery is taking place at a slower pace than
in Sweden, which affects our Finnish companies in both ren-
ovation and new construction. At the same time, there re-
mains a significant need for renovation measures, in particu-
lar with regard to the external building envelope of buildings
and the replacement of older glazing systems. This provides
good conditions for future growth, especially in the renova-
tion segment.
Outlook
Our assessment is that the trend of an incipient recovery in
the renovation market will continue, and that activity will
gradually strengthen in the coming quarters. However, we
believe that the recovery in the new production segment will
take longer.
Profitability is not at a satisfactory level, which means that our
focus continues to be on implementing and following up on
profitability improvement measures. At the same time, we
maintain a readiness to quickly meet increasing demand
when the market strengthens further.
In conclusion, I would like to extend a warm thank you to
Michael Grindborn for his efforts and commitment during his
time as CFO of Balco Group. At the same time, we welcome
Viktor Arvidsson as the new CFO. Viktor's experience from
listed and manufacturin g companies makes him a valuable
addition to Balco Group's Group Management going for-
ward.
Camilla Ekdahl
President and CEO
===== SIDA 3 =====
3 | Balco Group Interim Report 1 January - 30 September 2025
Group development
The third quarter: July – September
Net sales amounted to 277 MSEK (331). Organic growth was -13 percent and currency
effect was -3 percent. Net sales increased in the rest of Europe, but decreased in Nor-
way, Sweden, Denmark and Finland.
Net sales for the renovation segment amounted to 206 MSEK (247) and net sales for
the new build segment amounted to 70 MSEK (84).
Order intake amounted to 222 MSEK (285). Order intake for the renovation segment
amounted to 188 MSEK (250) and order intake for the new build segment amounted
to 33 MSEK (35).
The order backlog increased by 4 percent to 1,377 MSEK (1,329). The order backlog for
the renovation segment increased to 1,107 MSEK (1,034) and the order backlog for the
new build segment amounted to 269 MSEK (294).
Adjusted operating profit (EBITA) amounted to 3 MSEK (17), corresponding to an ad-
justed operating margin of 1,1 percent (5.0).
Items affecting comparability of 0 MSEK (-5) were taken in the quarter linked to acqui-
sition costs.
Net financial items amounted to -8 MSEK (-9), of which -0.4 MSEK (-0.3) relates to
interest expenses linked to rights of use (leases). Interest expenses of -7 MSEK (-6).
Profit after tax amounted to -5 MSEK (1). Adjusted profit after tax amounted to -5
MSEK (5). Earnings per share amounted to -0,23 SEK (-0.03). Adjusted earnings per
share amounted to -0,23 SEK (0.14).
Operating cash flow amounted to 3 MSEK (-1). The phases of the projects affect the
cash flow between quarters.
Cash flow from operating activities before changes in working capital amounted to 2
MSEK ( 10) and cash flow from operating activities after changes in working capital
amounted to -9 MSEK (-20).
Cash flow from investing activities amounted to 0 MSEK ( -2), of which 0 MSEK
(0) was replacement investments and 0 MSEK (-2) expansion investments.
Cash flow from financing activities amounted to 44 MSEK (-19) with the largest item
relating to increased utilization of the revolving credit facility.
Cash flow for the quarter amounted to 34 MSEK (-41).
Depreciation/amortization amounted to -11 MSEK (-13), of which -6 MSEK (-5) relates
to depreciation related to rights of use (lease) and -1 MSEK (-2) relates to amortization
of acquired intangible assets.
Net sales per geographic market, MSEK
Jul-Sep Jul-Sep J an-Sep Jan-Sep Oct-Sep Jan-Dec
2025 2024 2025 2024 2024/25 2024
Sweden 121,0 137, 8 404,0 439,8 570,5 606,3
Other Nordics 109,4 165, 2 387,7 489,9 557,1 659,2
Other Europe 46,3 28, 1 132,1 101,8 182,7 152,4
Total net sales 276,8 331, 0 923,8 1 031,5 1 310,2 1 417,9
Order intake per segment, MSEK
Order backlog, MSEK
100
200
300
400
500
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2023 2024 2025
New Build Renovation
200
400
600
800
1 000
1 200
1 400
1 600
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2023 2024 2025
Order intake
Q3 2025
222 MSEK
===== SIDA 4 =====
4 | Balco Group Interim Report 1 January - 30 September 2025
The interim period: January – September
Net sales amounted to 924 MSEK (1,031). Acquired growth was 2 percent, currency
effect was -3 percent, and organic growth was -9 percent. Net sales increased in the
rest of Europe but decreased in Norway, Sweden, Denmark and Finland.
Net sales for the renovation segment amounted to 696 MSEK (719) and net sales for
the new build segment increased to 228 MSEK (312).
Order intake amounted to 1,016 MSEK (1,017). Order intake for the renovation segment
amounted to 782 MSEK (789) and order intake for the new build segment amounted
to 234 MSEK (228).
Adjusted operating profit (EBITA) amounted to 6 MSEK (52), corresponding to an ad-
justed operating margin of 0,7 percent (5.0).
Items affecting the comparability of - 31 MSEK (-14) have been taken this year related
to the restructuring of the organization.
Net financial items amounted to -17 MSEK (-21), of which - 1,3 MSEK (-1.2) relates to
interest expenses linked to rights of use (leases). Interest expenses of -17 MSEK (-17).
Profit after tax amounted to -34 MSEK (7). Adjusted profit after tax amounted to -10
MSEK (18). Earnings per share amounted to -1,53 SEK (0.12). Adjusted earnings per
share amounted to -0,46 SEK (0.61).
Operating cash flow amounted to -26 MSEK (81).
Cash flow from operating activities before changes in working capital amounted to
-27 MSEK (21) and cash flow from operating activities after changes in working capital
amounted to -103 MSEK (32).
Cash flow from investing activities amounted to - 48 MSEK (-87), of which -4 MSEK
(-1) was replacement investments and - 12 MSEK (-5) expansion investments mainly
related to product development , -12 MSEK (-1) reduction of long -term liabilities and
-20 MSEK (-81) acquisition of shares in subsidiaries.
Cash flow from financing activities amounted to 96 MSEK (93) with the largest item
relating to increased utilization of the revolving credit facility.
Cash flow for the full year amounted to -55 MSEK (38).
Depreciation/amortization amounted to - 34 MSEK (-39), of which -16 MSEK (-14) re-
lates to depreciation related to rights of use (lease) and -3 MSEK (-7) relates to amor-
tization of acquired intangible assets.
Net sales per customer category, MSEK
Jul-Sep Jul-Sep Jan-Sep Jan-Sep Oct-Sep Jan-Dec
2025 2024 2025 2024 2024/25 2024
T enant-owner associations 153,9 180,6 547,8 528,8 759,6 740,6
Private landlords 9,2 20,1 28,5 67,1 46,3 84,9
Publicly owned companies 9,2 14,4 20,7 38,6 35,0 52,8
Construction companies 104,4 116,0 326,8 397,0 469,4 539,5
Total net sales 276,8 331,0 923,8 1 031,5 1 310,2 1 417,9
Net sales, MSEK
Adjusted operating profit, MSEK
Operating cash flow R12, MSEK
0
300
600
900
1 200
1 500
100
200
300
400
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2023 2024 2025
0
25
50
75
100
125
- 10
10
20
30
40
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2023 2024 2025
50
100
150
200
250
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2023 2024 2025
Net sales
R12
Adjusted operating profit
R12
===== SIDA 5 =====
5 | Balco Group Interim Report 1 January - 30 September 2025
Financial position
Interest-bearing net debt including lease liabilities at the end of the interim period
amounted to 436 MSEK (302). Interest-bearing net debt including lease liabilities in
relation to adjusted EBITDA amounted to 6.8 times (2.8).
A waiver with the bank was obtained in June that is valid until the end of the year. The
covenants are well within this agreement.
At the end of the half-year period, the Group’s equity amounted to 744 MSEK (791).
The Group’s equity/assets ratio was 44 percent (49).
Personnel
The number of full-time employees in Balco Group amounted to 555 (631). The decrease is due to restructuring measures implemented
over the past year.
Parent company
The Parent Company is headquartered in Växjö and conducts business directly and through Swedish and foreign subsidiaries. The
activities of the Parent Company are mainly focused on strategic development, financial management, corporate governance
issues, board work and banking relations.
Shares, share capital and shareholders
As of the end of September 2025, the number of shares in Balco Group AB amounted to 23,021,648 shares, corresponding to a share
capital of 138,135,310 SEK. The four largest shareholders were Familjen Hamrin, Skandrenting AB, Swedbank Robur fonder and AB Tuna
Holding.
30-sep 30-sep 31-dec
MSEK 2025 2024 2024
Non-current liabilities to credit institutions 474,2 337,0 362,9
Leasing liabilities non-current 46,7 48,1 46,3
Current liabilities to credit institutions - - -
Leasing liabilities current 17,2 13,1 16,6
Cash and cash equivalents -102,1 -96,1 -147,8
Interest-bearing net debt incl leasing debt 436,0 302,2 278,0
Interest-bearing net debt incl. leasing/EBIT DA (12 months),
times 6,8 x 2,8 x 2,5 x
Equity/assets ratio, % 43,8 48,6 48,6
External interest-bearing net debt
In relation to EBITDA
0,0
2,0
4,0
6,0
8,0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2023 2024 2025
Equity/assets ratio
44 %
===== SIDA 6 =====
6 | Balco Group Interim Report 1 January - 30 September 2025
Development by segment
Renovation
Third quarter
Net sales amounted to 206 MSEK (247), corresponding to 75 percent (75) of total net sales.
Order intake amounted to 188 MSEK (250), corresponding to 85 percent (88) of total order intake.
The adjusted operating profit (EBITA) amounted to 2 MSEK (15), entailing an adjusted operating margin of 1.2 percent (6.0).
The interim period
Net sales amounted to 696 MSEK (719), corresponding to 75 percent (76) of total net sales.
Order intake amounted to 782 MSEK (789), corresponding to 77 percent (75) of total order intake.
The adjusted operating profit (EBITA) amounted to 4 MSEK (36), entailing an adjusted operating margin of 0.6 percent (5.0).
The order backlog increased by 7 percent to 1,107 (1,034), corresponding to 80 percent (78) of the total order backlog.
New build
Third quarter
Net sales amounted to 70 MSEK (84), corresponding to 25 percent (25) of total net sales.
Order intake amounted to 33 MSEK (35), corresponding to 15 percent (12) of total order intake.
The adjusted operating profit (EBITA) amounted to 1 MSEK (3), entailing an adjusted operating margin of 1.0 percent (3.8).
The interim period
Net sales amounted to 228 MSEK (312), corresponding to 25 percent (24) of total net sales.
Order intake increased by 2 percent to 234 MSEK (228), corresponding to 23 percent (25) of total order intake.
The adjusted operating profit (EBITA) amounted to 4 MSEK (16), entailing an adjusted operating margin of 1.6 percent (5.0).
The order backlog amounted to 269 MSEK (294), corresponding to 20 percent (22) of the total order backlog.
Jul-Sep Jul-Sep J an-Sep Jan-Sep Oct-Sep Jan-Dec
Renovation, MSEK 2025 2024 2025 2024 2024/25 2024
Net sales 206,4 246, 6 696,0 719,5 976,7 1 000,2
Adjusted operating profit (EBITA) 2,4 14, 8 3,9 36,2 23,5 55,8
Adhusted operating margin (EBITA), % 1,2 6, 0 0,6 5,0 2,4 5,6
Order intake 188,4 250, 0 782,5 789,1 1 067,6 1 074,2
Order backlog 1 107,5 1 034, 4 1 107,5 1 034,4 1 107,5 1 044,3
Jul-Sep Jul-Sep J an-Sep Jan-Sep Oct-Sep Jan-Dec
New Build, MSEK 2025 2024 2025 2024 2024/25 2024
Net sales 70,4 84, 4 227,8 312,0 333,6 417,7
Adjusted operating profit (EBITA) 0,7 3, 2 3,6 15,6 6,6 18,6
Adhusted operating margin (EBITA), % 1,0 3, 8 1,6 5,0 2,0 4,5
Order intake 33,4 35, 4 233,7 228,1 308,2 302,6
Order backlog 269,2 294, 4 269,2 294,4 269,2 265,0
===== SIDA 7 =====
7 | Balco Group Interim Report 1 January - 30 September 2025
Operations and segment description
Balco Group is a market leader in the balcony industry and offers a range of services, from development and manufacturing to
sales and installation of in-house manufactured open and glazed balcony systems. Balco has a unique method, known as the
Balco method, to deliver glazed balconies and balcony solutions. The method involves removing existing balconies and replac-
ing them with new, larger, glazed balconies with a lifespan of over 90 years, which provides the market's most economical and
sustainable solution.
To offer complete and customized solutions in the balcony industry, Balco Group has several subsidiaries that work together to
offer a complete solution in areas such as the manufacture and delivery of balconies, masonry and tile services, technical solutions
and façade services such as renovation, window replacement and façade cleaning. Balco Group strives to meet the customer's
needs and requirements by offering a combination of specialized services and expertise. Balco Group's offering contributes to
increased quality of life, security and value increase for residents in apartment buildings and provides energy savings of up to 30
percent. The Group takes full responsibility for the project and guides the customer through the entire process from project
planning to final inspection and service.
Segment - Renovation Segment - New Build
Brf Muraren in Kinna, Sweden Southwark Park Road in London, UK
The segment includes the replacement and expansion of exist-
ing balconies, mainly glazed balconies. The main driving force
is the pent -up need for renovation and the age profile of the
properties. The offer also includes façade renovation.
The segment includes balconies in the construction of multi -
dwelling properties. Demand is driven by the pace of new
housing production. The offer also includes façade work in
new construction.
Sales development per quarter, MSEK Operating margin per quarter, %
Sustainability
Sustainability is a prerequisite for long-term profitability for Balco Group. By focusing on sustainability, we can create a
strong brand, increase customer trust, and improve our competitiveness in the long term.
The risk rating according to Sustainalytics was lowered/improved to 17.2 (19.1), which means that we are among the 6 per-
cent with the lowest risk rating in our industry and among the 20 percent with the lowest risk rating of all companies.
100
200
300
400
2024
2025
2024
2025
2024
2025
2024
2025
Q1 Q2 Q3 Q4
New Build Renovation
-5,0
5,0
10,0
2024
2025
2024
2025
2024
2025
2024
2025
Q1 Q2 Q3 Q4
New Build Renovation
===== SIDA 8 =====
8 | Balco Group Interim Report 1 January - 30 September 2025
Other information
Seasonality
Balco's sales and earnings are partly affected by the timing of orders, seasonal variations and the fact that the general meeting season in
tenant-owner associations normally falls in the second and fourth quarters. Furthermore, the Group is positively affected by months with
many working days and lack of time off, as well as negatively affected by weather factors where winters with significant snowfall mean
increased costs.
Related party transactions
The related parties consist of the Board of Directors, Group Management and the CEO, partly through ownership in Balco and pa rtly
through the role of senior executive. The related parties also include the company's largest shareholders, the Hamrin family, which is
represented on the board by Carl-Mikael Lindholm, and Skandrenting, which is represented on the board by Johannes Nyberg. Transac-
tions with related parties are carried out on a market basis. For further information, see the Annual Report 2024 on pages 79 and 99.
Incentive program
Balco Group AB has one long-term incentive program aimed at the company's senior executives and additional key employees, a total of
approximately 30 employees. The incentive programs comprise a maximum of 230,000 warrants in total, which entitles the holder to
subscribe for a maximum of the corresponding number of shares. Balco's total cost for the incentive programs during the term of the
programs is expected to amount to approximately 1 MSEK. The programs entail a dilution corresponding to approximately 1 percent of
the company's total number of shares. The senior executives of Balco have acquired 60,000 warrants amounting to a total value of 248,400
SEK. The purpose of the incentive programs is to encourage broad shareholding among Balco's employees, facilitate recruitment, retain
competent employees and increase motivation to achieve or exceed the company's financial targets. For more information, see the Annual
Report 2024 on pages 46, 78 and 113.
Risks and uncertainty factors
The Group and the Parent Company are exposed to various types of risks through their operations. The risks can be divided into industry-
and market-related risks, business-related risks and financial risks. Industry- and market-related risks include, among other things, changes
in demand because of a weaker economy or other macroeconomic changes, a changed price for raw materials that are central to Balco's
production, and changes in competition or price pressure. Business-related risks include Balco's ability to develop and sell new innovative
products and solutions, that the Group can attract and retain qualified employees, and that Balco's profitability is dependent on the results
of the individual projects, i.e. the Group's ability to predict, calculate and deliver the projects within set financial frameworks. The financial
risks are summarized under financing risk, liquidity risk, credit risk and interest rate risk. Balco's risks and uncertainties are described on
pages 32–37, 43, 51, 55, 87–88, 91 and 94 of the Annual Report for 2024.
Outlook
Balco Group is one of the few complete balcony suppliers on the market that provides customized and innovative balcony solutions on a
turnkey contract. Balco Group is the market leader in the Nordic region and has a challenging position in other markets where the Group
operates. The market is fragmented and growing throughout Northern Europe. The value of the balcony market in the countries w here
Balco Group is represented is estimated at just over 40 billion SEK. Balco Group continuously evaluates selectiv e acquisitions that can
strengthen our market position in existing markets. The timing of building permits and the phases of projects affects cash fl ow between
quarters.
Our assessment is that the trend of an incipient recovery in the renovation market will continue, and that activity will gradually strengthen
in the coming quarters. However, we believe that the recovery in the new production segment will take longer. Prof itability is not at a
satisfactory level, which means that our focus continues to be on implementing and following up on profitability improvement measures.
Events during the quarter and after the end of the quarter
• Andreas Lindberg is employed in the newly established position of Director of Business Development & Head of IT Balco Group,
starts November 1, 2025.
• Viktor Arvidsson has been hired as the new CFO and Head of Investor Relations, starts Q1-2026.
• Michael Grindborn, CFO and Head of Investor Relations, leaves his employment with the company in connection with the Q3 re-
port.
• Joakim Petersen-Dyggve, CEO of Riikku Rakenteet Oy, leaves his employment on 30 November. Joakim has been a member of
Group Management. A successor has been recruited, but will not initially be part of the Group Management.
• First order taken in Germany with glazing system from Riikku.
===== SIDA 9 =====
9 | Balco Group Interim Report 1 January - 30 September 2025
Financial targets
Revenue growth
Balco Group shall achieve growth of 10 percent per year during a business cycle.
Profitability
Earnings per share shall grow by 20 percent per year during a business cycle.
Capital structure
Interest-bearing net debt shall not exceed 2.5 times operating profit before depreciation and amortization (EBITDA), other than
temporarily.
Dividend policy
Balco Group shall distribute 30-50 percent of profit after tax, taking into consideration the needs for Balco’s long-term growth and
prevailing market conditions
The interim report has been subject to a review of ISRE 2410 by the company's auditors.
This information comprises such information as Balco Group AB is obliged to publish in accordance with the EU Market Abuse Regulation. The
information was provided by the contact person below for publication on October 27 2025, at 13:00 CET.
Växjö, October 27, 2025
Camilla Ekdahl
President and CEO
Web conference
A webcast conference call will be held at 14: 00 CET on October 27, 2025, where CEO and President Camilla
Ekdahl, CFO Michael Grindborn and interim CFO Carin Bengtsson will present the report and answer questions.
To follow the webcast presentation and send written questions, please use this link:
https://www.finwire.tv/webcast/balcogroup/q3-2025/
To participate via teleconference and be able to ask questions, call in:
SE: +46 8 5052 0017
PIN: 884 2748 6432 #
For more information, please contact:
Camilla Ekdahl, President and CEO, Tel: +46 70 606 30 32, camilla.ekdahl@balco.se
Michael Grindborn, CFO and Head of IR, Tel: +46 70 670 18 48, michael.grindborn@balco.se
Carin Bengtsson, interim CFO, Tel: +46 73 412 87 67, carin.bengtsson@balco.se
Calendar 2025/2026
Year-end report 2025......................... February 6, 2026
Annual Report 2025 ............................ March 27, 2026
Interim report Jan-Mar 2026 ............ April 27, 2026
Annual General Meeting 2026 ......... May 5, 2026
Interim report Jan-Jun 2026 ............. July 14, 2026
Interim report Jan-Sep 2026 ............ October 26, 2026
===== SIDA 10 =====
10 | Balco Group Interim Report 1 January - 30 September 2025
Consolidated statement of comprehensive income
Jul-Sep Jul-Sep J an-Sep Jan-Sep Oct-Sep Jan-Dec
MSEK 2025 2024 2025 2024 2024/ 25 2024
Net sales 276,8 331, 0 923,8 1 031,5 1 310,2 1 417,9
Production and project costs -234,7 - 277,5 -821,8 -841,6 -1 150,1 -1 170,0
Gross profit 42,1 53, 6 102,0 189,8 160,1 248,0
Sales costs -21,7 - 25,5 -76,9 -89,7 -108,1 -120,9
Administration costs -18,8 - 19,8 -64,2 -72,4 -87,7 -95,9
Other operating income 0,6 1, 2 11,6 2,2 13,1 3,7
Other operating expenses - -0 ,0 - -0,0 -0,0 -0,0
Operating profit 2,2 9, 5 -27,6 29,9 -22,7 34,8
Finance income 1,0 0, 4 4,7 2,7 6,5 4,5
Finance costs -8,7 -9 ,2 -21,8 -23,8 -32,4 -34,3
Result before tax -5,5 0, 8 -44,7 8,8 -48,6 5,0
Income tax 0,7 0, 2 10,4 -2,1 12,1 -0,4
Net result for the period -4,8 0, 9 -34,2 6,7 -36,4 4,6
Net result attributable to parent company's shareholders -5,4 -0 ,7 -35,3 2,7 -37,0 1,1
Net result attributable to non-controlling interest 0,6 1, 6 1,1 4,0 0,6 3,5
Net profit for the period -4,8 0, 9 -34,2 6,7 -36,4 4,6
Other comprehensive income
Items that may later be reclassified to the income statement
T ranslation difference when translating foreign operations -2,4 -1 ,5 -9,7 1,9 -5,2 6,4
Comprehensive income for the period -7,1 - 0,5 -43,9 8,7 -41,6 11,0
Comprehensive income attributable to parent company's
shareholders -7,7 -2,2 - 45,0 4,7 -42,2 7,5
Comprehensive income attributable to non-controlling interest 0,6 1, 6 1,1 4,0 0,6 3,5
Comprehensive income for the period -7,1 - 0,5 -43,9 8,7 -41,6 11,0
Earnings per share, SEK, before dilution -0,23 - 0,03 -1,53 0,12 -1,61 0,05
Earnings per share, SEK, after dilution -0,23 - 0,03 -1,53 0,12 -1,61 0,05
Average number of shares before dilution, thousands 23 022 23 022 23 022 22 936 23 022 22 958
Average number of shares after dilution, thousands 23 022 23 022 23 022 22 936 23 022 22 958
===== SIDA 11 =====
11 | Balco Group Interim Report 1 January - 30 September 2025
Consolidated balance sheet in summary
30-sep 30-sep 31-dec
MSEK 2025 2024 2024
ASSETS
Non-current assets
Intangible assets
Goodwill 531,5 515,0 515,5
Other intangible assets 282,1 276,6 279,9
Total intangible assets 813,6 791,6 795,4
Tangible assets
Right-to-use assets 62,1 59,0 60,7
Property, plant and equipment 213,6 224,6 229,6
Total tangible assets 275,8 283,6 290,4
Financial assets 0,9 3,6 1,3
Deferred tax assets 9,5 0,8 6,3
Total non-current assets 1 099,8 1 079,6 1 093,3
Current assets
Inventory 61,2 70,7 64,8
Accounts receivables 213,3 179,8 123,1
Contract assets 206,4 197,1 199,7
Other current receivables 62,6 51,5 38,5
Cash and cash equivalents 48,1 39,4 103,1
Total current assets 591,5 538,4 529,2
TOTAL ASSETS 1 691,4 1 618,0 1 622,5
EQUITY AND LIABILITIES
Equity
Share capital 138,1 138,1 138,1
Other capital contributions 450,8 450,8 450,8
Reserves 8,2 13,6 17,9
Retained earnings, incl. profit for year 143,0 183,4 181,9
Equity attributable to Parent Company’s shareholders 740,1 785,9 788,7
Non-controlling interest 4,4 4,6 4,2
TOTAL EQUITY 744,5 790,5 793,0
LIABILITIES
Non-current liabilities
Liabilities to credit institutions 474,2 337,0 362,9
Leasing liabilities 46,7 48,1 46,3
Other non-current liabilities 12,6 36,6 34,7
Deferred tax liabilities 65,1 67,4 64,8
Total non-current liabilities 598,5 489,1 508,6
Current liabilities
Liabilities to credit institutions - - -
Leasing liabilities 17,2 13,1 16,6
Contract liabilities 82,8 61,0 38,0
Accounts payables 126,1 147,1 145,7
Other current liabilities 122,3 117,1 120,5
Total current liabilities 348,4 338,3 320,9
TOTAL EQUITY AND LIABILITIES 1 691,4 1 618,0 1 622,5
===== SIDA 12 =====
12 | Balco Group Interim Report 1 January - 30 September 2025
Consolidated changes in Shareholders’ Equity
MSEK
Share
Capital
Additiona
l paid-in
c
apital Reserves
Retained earnings
including
c
omprehensive
income for the
year
Non-
controlling
i
nterest
Total
equity
Opening balance 1 Jan 2024 131,5 406, 3 11,6 196,7 1,8 748,0
Correction of error from earlier year -8,1 -8,1
Updated opening balance 131,5 406,3 11,6 188,6 1,8 739,8
Comprehensive income for the period
Profit for the period - - - 2,7 4,0 6,7
Other comprehensive income for the period - - 1,9 - - 1,9
Total comprehensive income for the period - - 1,9 2,7 4,0 8,7
Transactions/ acquisitions/ disposald in holdings without
control - - - -7 ,9 -1,2 -9,1
Transactions with shareholders:
New shares issue 6,7 43,5 - - - 50,2
New warrants issue - 0,9 - - - 0,9
Total transactions with Company owners 6,7 44,5 - - - 51,1
Closing balance 30 Sep 2024 138,1 450, 8 13,6 183,4 4,6 790,5
Opening balance 1 Jan 2025 138,1 450, 8 17,9 181,9 4,2 793,0
Comprehensive income for the period
Profit for the period - - - -35,3 -35,3
Other comprehensive income for the period - - -9,7 - 1,1 -8,6
Total comprehensive income for the period - - -9,7 -35,3 1,1 -43,9
Transactions/ acquisitions/ disposald in holdings without
control - - - -3 ,6 -1,0 -4,5
Transactions with shareholders:
New warrants issue - -0,0 - - - -0,0
Total transactions with Company owners - -0,0 - - - -0,0
Closing balance 30 Sep 2025 138,1 450, 8 8,2 143,0 4,4 744,5
Note: Correction of error refers to incorrect project accounting – percentage of completion revenue recognition for a few projects in 2023. The correction
affects the following accounts: Contract assets -10,2 MSEK, Equity -8,1 MSEK, Deferred tax -2,1 MSEK, which has had a corresponding impact on the bal-
ance sheet as of December 31, 2024.
===== SIDA 13 =====
13 | Balco Group Interim Report 1 January - 30 September 2025
Consolidated Cash Flow Statements in summary
Jul-Sep Jul-Sep Jan-Sep Jan-Sep Oct-Sep Jan-Dec
MSEK 2025 2024 2025 2024 2024/25 2024
Operating activities
Operating profit (EBIT) 2,2 9,5 -27,6 29,9 -22,7 34,8
Adjustment for non-cash items 11,1 12,5 31,8 22,9 41,5 32,6
Interest received 0,9 0,7 3,5 2,5 4,6 3,6
Interest paid -8,0 -7,5 -19,8 -20,4 -28,0 -28,7
Income tax paid -3,8 -5,7 -15,0 -14,3 -6,8 -6,1
Cash flow from operating activities before changes in working
capital 2,3 9,5 -27,0 20,6 -11,4 36,2
Changes in working capital
Increase (-)/Decrease (+) in inventories -4,2 -0,0 2,8 -2,0 9,0 4,2
Increase (-)/Decrease (+) in current assets -14,1 22,2 -96,0 18,5 -42,9 71,6
Increase (+)/Decrease (-) in current liabilities 6,7 -51,5 16,8 -5,2 -4,8 -26,7
Cash flow from operating activities -9,3 -19,8 -103,5 31,9 -50,1 85,3
Cash flow from investing activities
Investments in intangible fixed assets -0,2 -1,5 -11,0 -2,5 -14,8 -6,3
Investments in tangible fixed assets -0,2 -0,5 -4,6 -2,9 -8,6 -6,8
Acquisitions of operations - 0,3 -20,4 -80,8 -20,4 -80,8
Changes in other non-current assets/liabilities 0,0 -0,4 -11,6 -0,8 -12,6 -1,8
Cash flow from investing activities -0,5 -2,0 -47,6 -87,0 -56,4 -95,7
Cash flow from financing activities
Changes in bank loans 50,5 -14,2 112,5 108,3 137,0 132,8
Changes in leasing -5,9 -4,9 -16,3 -15,1 -20,6 -19,5
New warrants issue -0,0 0,9 -0,0 0,9 -0,0 0,9
Distributed dividend to non-controlling interest -0,4 -1,2 -0,4 -1,2 -0,4 -1,2
Cash flow from financing activities 44,2 -19,3 95,8 92,9 116,0 113,1
Cash flow for the period 34,5 -41,2 -55,3 37,8 9,6 102,7
Cash and cash equivalents at beginning of the period 13,8 81,2 103,1 2,8 39,4 2,8
Exchange rate differential cash and cash equivalents -0,2 -0,7 0,4 -1,2 -0,9 -2,4
Cash and cash equivalents at end of the period 48,1 39,4 48,1 39,4 48,1 103,1
===== SIDA 14 =====
14 | Balco Group Interim Report 1 January - 30 September 2025
Key ratios
Jul-Sep Jul-Sep Jan-Sep Jan-Sep Oct-Sep Jan-Dec
MSEK 2025 2024 2025 2024 2024/25 2024
Net sales 276,8 331,0 923,8 1 031,5 1 310,2 1 417,9
Order intake 221,8 285,5 1 016,2 1 017,2 1 375,8 1 376,8
Order backlog 1 376,7 1 328,8 1 376,7 1 328,8 1 376,7 1 309,3
Gross profit 42,1 53,6 102,0 189,8 160,1 248,0
Adjusted Gross Profit 42,1 56,2 130,2 195,8 196,9 262,5
EBITDA 13,6 22,4 6,9 69,4 22,5 84,9
Adjusted EBITDA 13,7 27,4 38,1 83,6 64,1 109,6
Operating profit (EBITA) 2,9 11,6 -24,8 37,3 -17,2 44,9
Adjusted operating profit (EBITA) 2,9 16,6 6,4 51,5 24,4 69,6
Operating profit (EBIT) 2,2 9,5 -27,6 29,9 -22,7 34,8
Adjusted operating profit (EBIT) 2,2 14,5 3,6 44,2 19,0 59,5
Gross profit margin, % 15,2 16,2 11,0 18,4 12,2 17,5
Adjusted gross margin, % 15,2 17,0 14,1 19,0 15,0 18,5
EBITDA margin, % 4,9 6,8 0,7 6,7 1,7 6,0
Adjusted EBITDA margin, % 4,9 8,3 4,1 8,1 4,9 7,7
Operating profit margin (EBITA), % 1,1 3,5 -2,7 3,6 -1,2 3,3
Adjusted operating profit margin (EBITA), % 1,1 5,0 0,7 5,0 1,8 5,3
Operating profit margin (EBIT), % 0,8 2,9 -3,0 2,9 -1,7 2,5
Adjusted operating profit margin (EBIT), % 0,8 4,4 0,4 4,3 1,4 4,2
Operating cash flow 3,3 -1,4 -25,5 80,8 32,1 138,5
Operating cash conversion, % 24,2 -5,1 -66,9 96,6 50,2 126,3
Capital employed, R12 1 179,6 1 106,2 1 179,6 1 106,2 1 179,6 1 137,1
Capital employed, excl. goodwill, R12 656,6 599,5 656,6 599,5 656,6 622, 9
Equity 740,1 785,9 740,1 785,9 740,1 788,7
Interest-bearing net debt incl leasing debt 436,0 302,2 436,0 302,2 436,0 278,0
Interest-bearing net debt excl leasing debt 372,1 240,9 372,1 240,9 372,1 215,1
Interest-bearing net debt incl. leasing/Adjusted EBITDA 12
months, times 6,8 2,8 6,8 2,8 6,8 2,5
Interest-bearing net debt excl. leasing/EBITDA (12 months),
times 8,6 2,7 8,6 2,7 8,6 2,4
Return on capital employed, %, (12 months) 1,6 5,4 1,6 5,4 1,6 5,7
Return on capital employed, excl. goodwill, %, (12 months) 2,9 9,7 2,9 9,7 2,9 9,6
Return on invested capital, %, (12 months) -4,9 1,7 -4,9 1,7 -4,9 0,6
Equity/assets ratio, % 43,8 48,6 43,8 48,6 43,8 48,6
Number of full-time employees on the closing date 555 631 555 631 555 621
Average number of shares before dilution, thousands 23 022 23 022 23 022 22 936 23 022 22 958
Average number of shares after dilution, thousands 23 022 23 022 23 022 22 936 23 022 22 958
Equity per share, SEK 32 34 32 34 32 34
Earnings per share, SEK before dilution -0,23 -0,03 -1,53 0,12 -1,61 0,05
Earnings per share, SEK, after dilution -0,23 -0,03 -1,53 0,12 -1,61 0,05
Adjusted earnings per share, SEK, before and after dilution -0,23 0,14 -0,46 0,61 -0,18 0,89
===== SIDA 15 =====
15 | Balco Group Interim Report 1 January - 30 September 2025
Parent Company, income statement in summary
Parent company, balance sheet in summary
Jul-Sep Jul-Sep Jan-Sep Jan-Sep Oct-Sep Jan-Dec
MSEK 2025 2024 2025 2024 2024/25 2024
Net sales 6,8 6,0 20,1 17,8 26,0 23,7
Administrative expenses -6,4 -4,5 -19,5 -15,4 -25,5 -21,4
Operating profit 0,4 1,4 0,6 2,4 0,5 2,3
Interest income and similar profit/loss items 4,3 3,1 12,7 7,6 16,8 11,7
Interest expenses and similar profit/loss items -7,9 -5,2 -18,7 -18,2 -29,4 -28,9
Dividend / result from group company 1,4 4,8 1,4 277,5 -11,9 264,2
Profit/loss after financial items -1,7 4,1 -4,0 269,3 -24,0 249,3
Appropriations - - - - 33,8 33,8
Tax 0,3 0,1 0,8 1,7 -4,7 -3,8
Net profit/loss for the period -1,4 4,3 -3,2 271,0 5,0 279,2
In the Parent Company there are no items that are reported as other comprehensive income, so total comprehensive income is consistent with the profit for the period.
30-sep 30-sep 31- dec
MSEK 2025 2024 2024
ASSETS
Non-current assets
Financial assets
Shares in group companies 1 077,1 1 080,0 1 066,6
Other non-current assets 4,9 3,7 4,5
Total non-current assets 1 082,0 1 083,7 1 071,0
Current assets
Receivables from group companies 273,3 194,8 177,5
Other current receivables 19,3 17,0 8,3
Cash and cash equivalents 44,6 34,4 97,7
Total current assets 337,3 246,2 283,5
TOTAL ASSETS 1 419,2 1 329,9 1 354,6
EQUITY AND LIABILITIES
Equity
Restricted equity 138,1 138,1 138,1
Non-restricted equity 696,1 691,0 699,2
Total equity 834,3 829,1 837,3
LIABILITIES
Non-current liabilities
Liabilities to credit institutions 475,0 324,3 350,0
Other non-current liabilities 15,0 32,2 34,9
Total non-current liabilities 490,0 356,5 384,9
Current liabilities
Liabilities to group companies 68,3 120,7 110,0
Other current liabilities 26,7 23,7 22,4
Total current liabilities 95,0 144,3 132,4
TOTAL EQUITY AND LIABILITIES 1 419,2 1 329,9 1 354,6
===== SIDA 16 =====
16 | Balco Group Interim Report 1 January - 30 September 2025
Notes
Note 1 Accounting principles
This consolidated interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and applicable provisions of
the Swedish Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with RFR 2 and Chapter
9, Interim Reports, of the Swedish Annual Accounts Act. For both the Parent Company and the Group, accounting principles and calcula-
tion bases have been applied in the same manner as for the 2024 Annual Report, which was prepared in accordance with the International
Financial Reporting Standards as adopted by the EU and interpretations thereof. The interim information on pages 1 -9 forms an integral
part of this financial report.
Note 2 Business segments
Balco reports according to the following segments:
Renovation: includes replacement and expansion of existing balconies as well as installation of new balconies on apartment buildings
without balconies. The segment’s main market driver is the age profile of the residential property portfolio.
New Build: includes installation of balconies in conjunction with the construction of apartment buildings and balcony solutions in the
maritime area. The segment is mainly driven by the rate of new residential construction.
Jul-Sep
MSEK 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024
Net sales – External revenue 206,4 246,6 70,4 84,4 - - - - 276,8 331,0
Net sales – Internal revenue - - - - 6,8 6,0 -6,8 -6,0 - -
Total sales 206,4 246,6 70,4 84,4 6,8 6,0 -6,8 -6,0 276,8 331,0
Operating profit (EBIT) 1,7 9,2 0,6 2,4 -0,2 -2,2 - - 2,2 9,5
Depreciation included with 10,3 9,6 1,2 3,4 - - - - 11,5 13,0
of which amortization 0,7 1,6 0,1 0,5 - - - - 0,7 2,1
Items affecting comparison - 3,9 - 0,3 0,0 0,7 - - 0,0 5,0
Adjusted operating profit (EBITA) 2,4 14,8 0,7 3,2 -0,2 -1,4 - - 2,9 16,6
Adjusted operating margin 1,2% 6,0% 1,0% 3,8% 1,1% 5,0%
Operating profit (EBIT) 1,7 9,2 0,6 2,4 -0,2 -2,2 - - 2,2 9,5
Finance income - - - - 1,0 0,4 - - 1,0 0,4
Finance cost - - - - -8,7 -9,2 - - -8,7 -9,2
Profit before tax 1,7 9,2 0,6 2,4 -7,9 -10,9 - - -5,5 0,8
Jan-Sep
MSEK 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024
Net sales – External revenue 696,0 719,5 227,8 312,0 - - - - 923,8 1 031,5
Net sales – Internal revenue - - - - 20,1 17,8 -20,1 -17,8 - -
Total sales 696,0 719,5 227,8 312,0 20,1 17,8 -20,1 -17,8 923,8 1 031,5
Operating profit (EBIT) -23,8 24,7 -2,4 11,6 -1,3 -6,4 - - -27,6 29,9
Depreciation included with 30,0 30,0 4,5 9,5 - - - - 34,5 39,5
of which amortization 2,6 4,2 0,2 3,2 - - - - 2,8 7,4
Items affecting comparison 25,1 7,2 5,9 0,9 0,3 6,1 - - 31,2 14,2
Adjusted operating profit (EBITA) 3,9 36,2 3,6 15,6 -1,0 -0,2 - - 6,4 51,5
Adjusted operating margin (EBITA) 0,6% 5,0% 1,6% 5,0% 0,7% 5,0%
Operating profit (EBIT) -23,8 24,7 -2,4 11,6 -1,3 -6,4 - - -27,6 29,9
Finance income - - - - 4,7 2,7 - - 4,7 2,7
Finance cost - - - - -21,8 -23,8 - - -21,8 -23,8
Profit before tax -23,8 24,7 -2,4 11,6 -18,4 -27,5 - - -44,7 8,8
Renovation New Build Group-wide Eliminations Total
TotalRenovation New Build Group-wide Eliminations
===== SIDA 17 =====
17 | Balco Group Interim Report 1 January - 30 September 2025
Note 3 Reconciliation with IFRS financial statements
Balco’s financial statements include alternative performance measures, which complement the measures that are defined or spec ified in
applicable rules for financial reporting. Alternative performance measures are presented since, as in their context, they provide clearer or
more in-depth information than the measures defined in applicable rules for financial reporting. The alternative performance measures
are derived from the Company’s consolidated financial reporting and are not measured in accordance with IFRS.
30-sep 30-sep 31- dec
MSEK 2025 2024 2024
Interest-bearing net debt incl leasing debt
Non-current interest-bearing liabilities 520, 9 385,1 409,2
Current interest-bearing liabilities 17,2 13,1 16,6
Cash and cash equivalents -102,1 -96,1 -147,8
Interest-bearing net debt incl leasing debt 436,0 302,2 278,0
Adjusted EBITDA (R12) 64,1 108,2 109,6
Interest-bearing net debt/EBITDA (R12), times 6,8 2,8 2,5
Return on capital employed
Equity 740,1 794,0 796,8
Interest-bearing net debt 436,0 302,2 278,0
Average capital employed 1 187,4 1 061, 9 1 049,6
Adjusted operating profit (EBIT), (R12) 19,0 57,9 59,5
Return on capital employed, % 1,6 5,4 5,7
Equity/assets ratio
Equity attributable to owners of the parent company 740,1 785,9 788,7
Total assets 1 691,4 1 618,0 1 622,5
Equity/assets ratio, % 43,8 48,6 48,6
===== SIDA 18 =====
18 | Balco Group Interim Report 1 January - 30 September 2025
Jul-Sep Jul-Sep Jan-Sep Jan-Sep Oct-Sep Jan-Dec
MSEK 2025 2024 2025 2024 2024/25 2024
Adjusted operating profit (EBIT)
Operating profit (EBIT 2,2 9,5 -27,6 29,9 -22,7 34,8
Items affecting comparison
Re-structuring costs - 4,2 30,9 8,1 41,3 18,5
Acquisition costs 0,0 0,7 0,3 6,1 0,3 6,2
Adjusted operating profit (EBIT) 2,2 14,5 3,6 44,2 19,0 59,5
Operating profit (EBITA) - - - - - -
Operating profit (EBIT) 2,2 9,5 -27,6 29,9 -22,7 34,8
Amortization 0,7 2,1 2,8 7,4 5,5 10,1
Operating profit (EBITA) 2,9 11,6 -24,8 37,3 -17,2 44,9
Adjusted operating profit (EBITA) - - - - - -
Adjusted operating profit (EBIT) 2,2 14,5 3,6 44,2 19,0 59,5
Amortization 0,7 2,1 2,8 7,4 5,5 10,1
Adjusted operating profit (EBITA) 2,9 16,6 6,4 51,5 24,4 69,6
Adjusted net result
Net result -4,8 0,9 -34,2 6,7 -36,4 4,6
Items affecting comparison after tax 0,0 3,9 24,6 11,3 32,9 19,5
Adjusted net result -4,8 4,9 -9,6 18,0 -3,5 24,1
EBITDA
Operating profit (EBIT) 2,2 9,5 -27,6 29,9 -22,7 34,8
Depreciation and amortization 11,5 13,0 34,5 39,5 45,1 50,1
EBITDA 13,6 22,4 6,9 69,4 22,5 84,9
Adjusted EBITDA
Adjusted operating profit (EBIT) 2,2 14,5 3,6 44,2 19,0 59,5
Depreciation and amortization 11,5 13,0 34,5 39,5 45,1 50,1
Adjusted EBITDA 13,7 27,4 38,1 83,6 64,1 109,6
Investments, excluding expansion investments
Investments in intangible fixed assets -0,2 -1,5 -11,0 -2,5 -14,8 -6,3
Investments in tangible fixed assets -0,2 -0,5 -4,6 -2,9 -8,6 -6,8
of which expansion investments 0,9 1,6 11,6 4,4 14,1 6,9
Investments, excluding expansion investments 0,5 -0,4 -4,1 -1,0 -9,3 -6,2
Operating cash flow
Adjusted EBITDA 13,7 27,4 38,1 83,6 64,1 109,6
Changes in working capital -10,8 -28,5 -59,5 -1,8 -22,6 35,1
Investments, excluding expansion investments 0,5 -0,4 -4,1 -1,0 -9,3 -6,2
Operating cash flow 3,3 -1,4 -25,5 80,8 32,1 138,5
Net Sales excluding acquisitions
Net Sales 276,8 331,0 923,8 1 031,5 1 310,2 1 417,9
Acquired net sales - -109,2 -24,6 -315,7 -123,8 -414,9
Net Sales excluding acquisitions 276,8 221,8 899,2 715,8 1 186,4 1 003,0
Adjusted earnings per share
Net result attributable to parent company's shareholders -5,4 -0,7 -35,3 2,7 -37,0 1,1
Items affecting comparison after tax 0,0 3,9 24,6 11,3 32,9 19,5
Adjusted earnings per share -0,23 0,14 -0,46 0,61 -0,18 0,89
===== SIDA 19 =====
19 | Balco Group Interim Report 1 January - 30 September 2025
Alternative performance measures
This interim report contains references to several performance measures. Some of these measures are defined in IFRS, while others are
alternative measures and are not reported in accordance with applicable financial reporting frameworks or other legislation. The measures
are used by Balco to help both investors and management to analyze its operations. The measures used in this interim report are described
below, together with definitions and the reason for their use.
Alternative performance measures Definition Reason for use
Return on equity Income for the period divided by the average
shareholder equity for the period. The average
calculated as the average of the opening balance
and the closing balance for the period.
Return on equity shows the return that is generated
on the shareholders’ capital that is invested in the
company.
Return on capital employed Adjusted EBITA as a percentage of average capi-
tal employed for the period. The average calcu-
lated as the average of the opening balance and
the closing balance for the period.
Return on capital employed shows the return that is
generated on capital employed by the company and
is used by Balco to monitor profitability as it relates to
the capital efficiency of the company.
Return on capital employed ex-
cluding goodwill
Adjusted EBITA as a percentage of average capi-
tal employed for the period excluding goodwill.
Average calculated as the average of the opening
balance and the closing balance for the period.
Balco believes that return on capital employed ex-
cluding goodwill together with return on capital em-
ployed shows a complete picture of Balco's capital ef-
ficiency.
Gross income Revenue less production and project costs. Shows the effectiveness of Balco's operations and to-
gether with EBIT provides a complete picture of the
operating profit generation and expenses.
Gross margin Gross income as a percentage of net sales. Ratio is used for analysis of the company’s effective-
ness and profitability.
EBITDA Earnings before interest, tax, depreciation, and
amortization.
Balco believes that EBITDA shows the profit generated
by the operating activities and is a good measure of
cash flow from operations.
Interest-bearing net debt relative
to adjusted EBITDA
Interest-bearing external net debt divided by ad-
justed EBITDA.
Balco believes this ratio helps to show financial risk
and is a useful measure for Balco to monitor the level
of the company’s indebtedness.
Adjusted EBITDA EBITDA as adjusted for items affecting compara-
bility. For a reconciliation of adjusted EBITDA to
income for the period.
Balco believes that adjusted EBITDA is a useful meas-
ure for showing the company’s profit generated by
the operating activities after adjusting for items af-
fecting comparability, and primarily uses adjusted
EBITDA for purposes of calculating the company’s op-
erating cash flow and cash conversion.
Adjusted EBITDA margin Adjusted EBITDA as a percentage of net sales. Balco believes that adjusted EBITDA margin is a useful
measure for showing the company’s profit generated
by the operating activities after non-recurring items.
Adjusted EBIT margin Adjusted EBIT as a percentage of net sales. Balco believes that adjusted EBIT margin is a useful
measure for showing the company’s profit generated
by the operating activities.
Adjusted EBIT EBIT adjusted for items affecting comparability.
For a reconciliation of adjusted EBIT to income for
the period.
Balco believes that adjusted EBITA is a useful measure
for showing the company’s profit generated by the
operating activities, and primarily uses adjusted EBIT
for calculating the company’s return on capital em-
ployed.
Adjusted EBITA margin Adjusted EBITA as a percentage of net sales. Balco believes that adjusted EBITA margin is a useful
measure for showing the company’s profit generated
by the operating activities.
Adjusted EBITA EBITA adjusted for items affecting comparability.
For a reconciliation of adjusted EBIT to income for
the period.
Balco believes that adjusted EBIT is a useful measure
for showing the company’s profit generated by the
operating activities, and primarily uses adjusted EBIT
for calculating the company’s return on capital em-
ployed.
Items affecting comparability Items affecting comparability are significant
items reported separately due to their size or fre-
quency, e.g., restructuring costs, write-downs, di-
vestments, and acquisition costs.
Balco believes that adjustment for items affecting
comparability improves the possibility of comparison
===== SIDA 20 =====
20 | Balco Group Interim Report 1 January - 30 September 2025
Alternative performance measures Definition Reason for use
over time by excluding items with irregularity in fre-
quency or size. This is to give a more accurate picture
of the underlying operating profit.
Operating cash conversion Operating cash flow divided by adjusted EBITDA. Balco believes this is a good measure for comparing
cash flow with operating profit.
Operating cash flow Adjusted EBITDA increased/decreased with
changes in net working capital less investments,
excluding expansion investments.
Operating cash flow is used by Balco to monitor busi-
ness performance.
Organic growth Net sales excluding acquired growth current pe-
riod divided by net sales during the correspond-
ing period last year.
Organic growth excludes the effects of changes in the
Group's structure, which enables a comparison of net
sales over time.
Interest-bearing net deb
The sum of non -current interest-bearing liabili-
ties and current interest-bearing liabilities.
Balco believes interest -bearing net debt is a useful
measure to show the company’s total debt financing.
Net working capital Current assets excluding cash and cash equiva-
lents and current tax assets less non -interest-
bearing liabilities excluding current tax liabilities.
This measure shows how much net working capital
that is tied up in the operations and can be put in re-
lation to sales to understand how effectively net
working capital tied up in the operations is used.
EBIT margin EBIT as a percentage of net sales. Balco believes EBIT margin is a useful measure to-
gether with net sales growth and net working capital
to monitor value creation.
EBIT Earnings before interest and tax. Balco believes that EBIT shows the profit generated by
the operating activities.
EBITA margin EBITA as a percentage of net sales. Balco believes EBITA margin is a useful measure to-
gether with net sales growth and net working capital
to monitor value creation.
EBITA EBIT excluding amortization on acquired intangi-
ble assets.
Balco's growth strategy includes acquiring compa-
nies. In order to better illustrate the development of
the underlying business, the management has chosen
to follow EBITA, which is an expression of the operat-
ing profit before depreciation and write-downs of ac-
quired intangible assets.
Equity/asset ratio Equity divided on total assets. Balco believes that equity to asset ratio is a useful
measure for the company's survival.
Capital employed Equity plus interest-bearing net debt. Capital employed is used by Balco to indicate the
general capital efficiency of the company.
Capital employed excluding good-
will
Capital employed minus goodwill. Capital employed excluding goodwill is used together
with capital employed by Balco as a measure of the
company's capital efficiency.
===== SIDA 21 =====
Balco Group in brief
Balco Group is a market leader in the balcony industry, where we develop, manufacture, sell,
and take responsibility for the installation of our own bespoke open and glazed balcony sys-
tems. The Group's customized products contribute to enhanced quality of life, security, and
increased value for residents in multi-occupancy buildings. Furthermore, Balco Group's stand-
ardized glazing systems result in reduced energy consumption.
555employees
Balco Group was established in 1987 and is a group
consisting of producing and selling companies. The
group is the market leader in the Nordics and operates
in several markets in northern Europe. The head office
is in Växjö. A general and distinctive feature of the
companies in the Group is that they control the entire
value chain - from sales work to installed balcony -
through a decentralised and efficient sales process.
7 markets
1,310 MSEK net sales R12
35,000 sqm total production area