EL7.AI
StocksMedium•23 October 2026•
4 min read

AFRY profit rises to 204 million kronor in third quarter despite organic contraction

Key Facts

1Profit attributable to shareholders of the parent company rose to 204 million Swedish kronor, from 137 million in the corresponding quarter.
2Sales increased 1.9% to 5,793 million Swedish kronor, from 5,687 million a year earlier.
3The adjusted earnings before interest, taxes and amortisation margin rose to 6.8% from 6.4%.
4Calendar-adjusted organic sales contracted by 1.5%.
5Operating cash flow fell to 64 million Swedish kronor, from 418 million a year earlier.

AFRY's profit after tax attributable to shareholders of the parent company rose to 204 million Swedish kronor in the third quarter of 2026, from 137 million in the corresponding period of 2025, according to the company's interim report. The increase came alongside improved sales and margins, despite a continued contraction in calendar-adjusted organic sales. Operating profit was about 347 million kronor, compared with 288 million a year earlier. Earnings per share rose to 1.80 Swedish kronor from 1.21 kronor in the corresponding quarter. The improvement in results thus extended from operating profit to profit attributable to shareholders and earnings per share, as performance varied across the company's divisions.

AFRY said in its earnings statement that sales rose 1.9% to 5,793 million Swedish kronor, from 5,687 million in the third quarter of the previous year. Structural changes contributed 132 million kronor to sales for the period, according to the interim report. This contribution came mainly from the acquisition of AMC, which was completed in the previous quarter. Calendar-adjusted organic sales, meanwhile, contracted by 1.5% in the third quarter. The increase in total sales thus coincided with a continued organic decline, with the acquisition supporting the group's reported revenue.

On profitability, earnings before interest, taxes and amortisation, excluding items affecting comparability, reached 392 million kronor, compared with 362 million in the corresponding quarter, according to the company's statement. The adjusted margin rose to 6.8% from 6.4% a year earlier. The utilisation rate improved over the same period to 72.9%, compared with 72.0% in the third quarter of 2025. Improved utilisation helped lift profitability, while the acquisition contributed to overall sales growth. The group's adjusted margin expanded despite a decline in the Transportation & Places division's margin, offset by an improvement in the Industry division's margin.

At the divisional level, the Industry division's earnings before interest, taxes and amortisation margin rose to 8.4% in the third quarter, from 7.2% a year earlier, according to the results presentation. The company attributed part of the division's performance to the AMC acquisition and project close-outs. It said in the presentation that "the AMC acquisition and project close-outs contributed positively to sales and profitability." In the Transportation & Places division, the margin fell to 5.1%, compared with 5.6% in the corresponding period. The company cited pressure on the division's profitability from "lower business volumes and weak property activity." The two divisions' performance showed a contrast between support from the acquisition and projects for Industry, and the continued impact of weak property activity on Transportation & Places.

AFRY provides engineering, project management and consulting services, according to the company's description of its operations in the invitation to its results presentation. These services are linked to the energy and industrial transitions. Its operations cover the industrial sector, alongside the Transportation & Places division, whose profitability was affected by weak property activity. The group's order backlog stood at about 22.1 billion kronor at the end of September 2026, according to the interim report. The comparative balance was 20.4 billion kronor at the end of September 2025. The increase in the order backlog came as calendar-adjusted organic sales continued to contract during the quarter.

On cash flow, cash from operating activities fell to 64 million Swedish kronor in the third quarter of 2026, according to the interim report. Operating activities had generated 418 million kronor in the corresponding period of the previous year. The decline in cash flow coincided with increases in operating profit and profit attributable to shareholders of the parent company. Cash generated from operations thus moved in the opposite direction to earnings during the period. The next event on the company's reporting calendar is its results for the fourth quarter of 2026, scheduled for release on 4 February 2027.