The weekend before next Friday’s interim report, and my own subjective thoughts ahead of the annual results.
- According to the latest reported quarter:
- revenue €146m (R12)
- €7.3m operational EBIT
- 23 companies
- Strong growth and market roller coaster in the rearview mirror
- 2019-2022, rapid growth phase
- 2023-2024, challenges (Ukraine, Finnish economy)
- 2025, back to growth
- Already four consecutive quarters of growth behind us after the market dip
4. The business model has proven its functionality both in the general market (= Boreo’s peer companies in Sweden) and under Preato’s ownership (= Consivo)
- In next week’s financial statements, I’m interested in:
-continuation of organic growth
-growth opportunities for Milcon, Delfin, Signal Solutions and Filterit
-performance and outlook of the RS businesses acquired in 2025
- On the strategic side, hopefully we will hear something in the financial statements or report regarding the status/continuation of the previously announced 2026 portfolio review.
Boreo has implemented its strategy quite exemplarily over the long term; below are the strategic targets compared to the 5-year average for 2020-2024:
-EBIT growth/year: target 15%, actual 26%
-ROCE: target 15%, actual 10%
-net debt: target 2-3 x, actual 2.5 x net debt/EBITDA
And since that’s the case, it would be worth considering measuring these parameters over a longer period than annually.