Equity Research Enrad, Q3 2025: Strong quarter above expectations

Enrad AB’s net sales of SEK 12.6 million in Q3 2025 exceeded our estimate of SEK 11.2 million by approximately 12%. Compared to Q3 2024, sales grew by 57%. Profit margins also came in higher than we had anticipated.

Breakthrough in the Netherlands can happen in Q4

Enrad AB (“Enrad” or “the Company”) reported net sales of approximately SEK 12.6 million in Q3 2025, which was about 12% higher than our estimate of SEK 11.2 million. The gross profit of SEK 6.6 million corresponds to a gross margin of 52.5%, exceeding our estimate of a gross profit of SEK 5.8 million and a gross margin of 52%. EBITDA amounted to negative SEK 0.3 million in Q3 2025, compared to our estimate of negative SEK 0.7 million. The deviation is primarily attributable to higher-than-expected sales. The Company’s cash position as of September 30, 2025, amounted to approximately SEK 20.0 million.

In the Q3 2025 report, CEO Andreas Bäckäng stated that the establishment in the Netherlands has been a key focus during the quarter. A recently signed partnership with One Solution in Holland BV is expected to accelerate market penetration. The current focus is on converting interest into confirmed orders, with the goal of securing the first deal before year-end.

Meanwhile, progress continues within the product and production areas. Organizational changes in Norway have freed up resources for product development and technical improvements. Certain decisions regarding new products are pending the update of industry standards to ensure full compliance with future requirements. The work to streamline production processes has intensified following the digitalization implemented earlier this year, with the goal of optimizing workflows and operational efficiency.

The Company has also initiated the development of its own training and certification platform for refrigeration technicians—a strategic initiative aimed at securing future competence in natural refrigerants. This is expected to strengthen the Company’s competitiveness over time.

We are making a slight upward revision to our net sales estimate for Enrad in 2025, from the previous SEK 64.3 million to SEK 67.7 million. Forecasts for 2026 and 2027 have also been adjusted slightly upwards. We assume a gross margin of around 50% for the period 2025–2028, gradually declining to 45% toward the end of the estimation period in 2034.

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