Indutrade, a Sweden-based industrial group, has reported a resilient performance in its interim results for the first quarter of 2025, achieving organic order growth despite ongoing global economic instability.
The Group, which is headquartered in Stockholm, saw particular strength in its Life Science segment, driven by continued demand in the pharmaceutical and medical technology sectors.
According to Bo Annvik, President and CEO of Indutrade, demand improved modestly during the quarter, with total order intake rising by 5% to SEK 8,462 million (8,037). Organic growth accounted for 1%, with over half of the Group’s companies reporting positive developments.
The strongest growth was recorded in customer segments related to medical technology and pharmaceuticals, while the Scandinavian process industry and energy sector also performed well.
The Group, which is headquartered in Stockholm, saw particular strength in its Life Science segment
“Demand varied between and within segments,” commented Annvik. “However, the medical technology and pharmaceutical industries demonstrated the strongest growth overall, reflecting the continued long-term needs in these fields.”
Net sales for the quarter increased by 4% to SEK 8,036 million (7,744), with organic sales broadly unchanged from the previous year.
The Life Science business area delivered the highest organic sales growth, primarily due to sustained demand from pharmaceutical production clients. In contrast, sales within Technology & Systems Solutions lagged, reflecting a subdued engineering market.
Earnings before interest, taxes and amortisation (EBITA) rose by 6% to SEK 1,094 million (1,033), resulting in an EBITA margin of 13.6% (13.3%). Indutrade’s operating companies managed to improve gross margins through effective pricing strategies, although EBITA margin progression was tempered by flat organic sales and slightly increased operating expenses.
The strongest growth was recorded in customer segments related to medical technology and pharmaceuticals
Margins improved within the Life Science and Infrastructure & Construction business areas but declined elsewhere.
Cash flow from operating activities strengthened to SEK 644 million (487), attributed to higher earnings and improved working capital trends.
The Group maintains a robust financial position, with what Annvik described as a “historically low net debt/equity ratio.”
Strategic acquisitions enhance market presence
In line with its growth strategy, Indutrade completed three acquisitions in the period, adding companies with combined annual sales of around SEK 390 million. These included:
- Ecoroll, a German manufacturer specialising in tool technology for mechanical surface treatment.
- IPP, an Irish technical trading firm focused on manufacturing equipment and consumables for the medical technology, pharmaceuticals and electronics sectors in the UK and Ireland.
- Ideus, a Swedish supplier of customised metal components for the engineering industry.
Annvik confirmed that despite prevailing market uncertainties, the acquisition environment remains positive in 2025. “We have good activity in our acquisition processes and a strong financial position, laying a solid foundation for continued value-creating acquisitions,” he added.
Outlook
Looking ahead, Indutrade expects market conditions to remain challenging given global economic instability and a somewhat reduced order backlog compared to the previous year. Nevertheless, the Group remains optimistic about long-term demand drivers in core sectors such as medical technology, pharmaceuticals, infrastructure and energy.
Annvik concluded: “Our decentralised business model, with many entrepreneurial companies and limited large individual business exposures, provides resilience and adaptability. We remain focused on sustainable, profitable growth and are well positioned for long-term value creation.”