Stroer SE & Co (SAX) Q3 2025 earnings summary

Executive summary

• Revenue for the first nine months of 2025 rose 1% to €1,471.7 million, with organic growth at -0.4% amid challenging macroeconomic and political conditions.

• Adjusted EBITDA for the period was €413.6 million, down from €419.8 million in 2024; adjusted net income declined 10% to €86.3 million.

• Free cash flow adjusted was €19.1 million, down sharply from the prior year, mainly due to higher working capital requirements.

• CapEx increased to €67 million, including investment in the new flagship screen, The Whale, in Hamburg.

• Net debt increased to €945 million, mainly due to dividend payments and acquisitions.

Financial highlights

• Q3 2025 revenue declined by 1% year-over-year to €491.5 million, with organic growth at -2.1%.

• Adjusted EBITDA for Q3 was €147.4 million (vs. €156 million in Q3 2024); adjusted net income for Q3 was €34.1 million, down 17% year-over-year.

• Leverage ratio increased to 2.53 at Q3 2025, up from 2.1 at Q3 2024.

• Cash flow in Q3 was impacted by higher investments and working capital outflows, especially in Out-of-Home and Dialog segments.

• Gross profit for the nine-month period was €618.4 million, down from €622.7 million year-over-year.

Outlook and guidance

• Q4 expected to show low to mid single-digit revenue growth in Out-of-Home, with Digital & Dialog Media ahead of Q3 growth rate.

• Guidance for 2025 remains unchanged; mid- to long-term expectation of double-digit average top-line growth in core Out-of-Home business.

• Management expects a normalized trading environment in 2026, with confidence in double-digit growth as market uncertainty recedes.

• The Board projects full-year 2025 revenue of €2,047 million and adjusted EBITDA of €626 million.

• Persistent uncertainties are expected to continue influencing business performance for the remainder of 2025.