President and CEO André Strömgren’s comments from Wall to Wall Group’s latest quarterly report
Continued improvement in profitability
The market continues to show gradual improvement, with distinct regional variations. Profitability improved for the second consecutive quarter compared to the previous year, despite lower net revenue. Lower costs and improved margins are the result of the actions taken.
In the flushing operations, we have seen rising demand for emergency pipe repairs, so-called service relining, while overall flushing activity has remained at normal levels. For the Group’s energy services demand increased significantly, contributing to continued recovery during the quarter. The acquisition of Energiprojekt enables us to deliver combinations of several energy-saving services, for which we see increasing demand. Activity within pipe relining remains subdued, but regional variations are significant, with certain submarkets performing noticeably stronger than last year. Improved coordination and control, together with the ongoing transition to standardized materials and working methods, have contributed to a strengthened gross margin.
Efficiency and stronger market presence
The transformation work is progressing according to plan, with clear results in margin improvements and cost reductions. The consolidation of the Group’s operations together under a unified structure continues, with central functions for project design, sales, and marketing now in place. The shared market profile strengthens market visibility and reinforces Wall to Wall Group’s position as the Nordic region’s leading player within its segments.
The ongoing efficiency measures are yielding results. Indirect costs for the past twelve-month period decreased to SEK 198 million, down 10.2% compared with the corresponding period and 8.5% compared with full-year 2024, adjusted for currency and on a comparable basis. On an annualized basis, the cost level now amounts to SEK 187.3 million, providing a good basis to reach the target run rate of SEK 180 million before year-end.
Overall, a more efficient cost structure provides better conditions for profitable growth as our initiatives within sales and marketing begin to translate into revenue.
Acquisition integration
The integration of Energiprojekt is already showing positive effects, with its services complementing the Group’s existing energy offering. The combination creates a stronger, more comprehensive solution for customers and drives growth within the segment. The integration of Västsvenska Spol in Gothenburg is also progressing according to plan. The acquisition supports our goal of establishing a strong presence in Western Sweden.
Strengthened management
During the quarter, Johan Wewel was appointed as the new CFO of Wall to Wall Group, starting in January 2026. Johan brings extensive experience from senior roles in finance and strengthens the management team at an important stage in the Group’s development.
Outlook
The market continues to show signs of recovery, although the development remains gradual and varies between regions. The measures implemented to strengthen margins and reduce costs have been successful and, combined with an increased commercial focus, will enable Wall to Wall Group to return to profitable growth. The fourth quarter is typically a seasonally strong period and is expected to be so this year as well, while the full effect of the measures taken is expected to materialize over a longer horizon. That said, we expect a good end to the year, an improved adjusted operating result for the full year, and we look ahead with confidence to the company’s continued prospects.
