INDUS Group Reports Strong Third Quarter Performance with 10% Earnings Growth

INDUS Group increased its revenue and earnings through the course of 2025, with the third quarter showing particularly strong performance. Revenue reached EUR 437.4 million in the third quarter, marking the highest quarterly total in the 2025 financial year and coming in only slightly below the previous year's figure of EUR 443.1 million. Earnings measured by adjusted EBITA were up 10.1% year over year, reaching EUR 48.1 million compared to EUR 43.7 million in the previous year. The adjusted EBITA margin rose to 11.0%, clearly outperforming the previous year's 9.9%.

Dr. Johannes Schmidt, Chairman of the INDUS Group's Board of Management, stated that the Group gained significant momentum in the third quarter of 2025 despite persistent challenges in the macroeconomic environment. He emphasized that cost management efforts are delivering results, with quarterly earnings reaching their highest level since the beginning of 2024. The company's performance indicates they are proceeding as planned with their strategic initiatives.

At EUR 1.274 billion, the listed investment company's revenue after nine months was nearly level with the previous year's EUR 1.282 billion, despite difficult market conditions. Incoming orders increased by 17.2% year over year, signaling strong future business prospects. Adjusted EBITA for the period was EUR 104.2 million, with an adjusted EBITA margin of 8.2% compared to EUR 117.6 million and 9.2% in the previous year. Earnings per share climbed to EUR 2.46, significantly higher than the previous year's EUR 1.89, reflecting improved profitability and shareholder value creation.

Earnings developed positively across all three segments during the year. The Engineering segment companies increased incoming orders in the first three quarters by 35.5% compared to the previous year, with notable orders for long-term plant engineering projects. The segment was further strengthened in 2025 by the acquisition of stud welding specialist HBS and its US subsidiary SUNBELT, as well as US precision metal manufacturer METFAB. Defying the market trend, revenue in the Infrastructure segment rose to EUR 453.5 million in the first nine months compared to EUR 425.2 million in the previous year. In July, INDUS announced the acquisition of formwork specialist TRIGOSYS, marking the segment's third acquisition this year, with the transaction completed on 31 October 2025.

The Materials Solutions segment also showed a clear upward trend in the third quarter, with segment earnings of EUR 16.4 million significantly up from the previous year's EUR 12.6 million. The adjusted EBITA margin rose to 11.9% from 8.9% in the previous year. Chinese export controls caused significant delays and, in some cases, stopped deliveries of tungsten carbide feedstock at portfolio company BETEK, but a comprehensive and costly set of measures ensured the supply for ongoing production, demonstrating the company's resilience in managing supply chain challenges.

Free cash flow increased by around EUR 67 million in the third quarter, reaching EUR 58.7 million for the first nine months compared to EUR 71.9 million in the previous year. The equity ratio stood at 37.4% as of 30 September 2025, down slightly from 38.7% at the end of 2024. For the full year 2025, the Board of Management continues to project Group revenue between EUR 1.70 billion and EUR 1.85 billion and earnings in the range of EUR 130 million to EUR 165 million. The adjusted EBITA margin is still expected to be between 7.5% and 9.0%, with free cash flow projected to exceed EUR 90 million for the full year.

Schmidt noted that the complex political and macroeconomic environment is demanding a lot from all companies, but expressed pleasure that portfolio companies overall are managing these challenges well. He highlighted the positive sign that international revenue is rising both in absolute and relative terms, now accounting for 52% of total revenue. With its EMPOWERING MITTELSTAND strategy, INDUS has defined internationalization, acquisitions and engineering competence as key growth drivers. INDUS has added five acquisitions to its portfolio so far in 2025, including deals in Sweden and the United States, and currently expects to complete more transactions by year-end, noting that the M&A market is particularly attractive for buyers right now. The full interim report can be found at https://www.indus.eu.