Can Sweco (OM:SWEC B) Sustain Profit Momentum Amid Shifting Market Conditions?

• Sweco AB (publ) announced earnings for the third quarter and first nine months of 2025, reporting sales of SEK 7,138 million and SEK 23.04 billion, respectively, both higher than the same periods last year.
• The company's net income and earnings per share also grew year-over-year, suggesting continued operational strength in challenging market conditions.
• We’ll consider how Sweco’s quarterly sales and profit growth could influence its investment narrative and future outlook.

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Sweco Investment Narrative Recap

For shareholders to remain confident in Sweco, they must believe in the company's ongoing ability to convert its strong order backlog into growing sales and earnings, despite ongoing challenges in certain regional markets. The latest quarterly results confirm resilience with higher sales and profit, but do not fully offset the continued pressure from weak demand in sectors like Finnish real estate, which remains the most material risk to short-term margin expansion.

One of the most relevant announcements is Sweco's newly secured framework agreement with Rijkswaterstaat for major infrastructure projects in the Netherlands. This supports the catalyst of a robust backlog in growth segments like infrastructure, potentially providing some cushion against market softness elsewhere and reinforcing the near-term outlook highlighted by recent earnings growth.

Yet, in contrast to the company’s broadly positive results, investors should be aware that persistent weakness in the Finnish market could still impact Sweco’s revenue consistency if…

Read the full narrative on Sweco (it's free!)

Sweco's outlook anticipates SEK36.9 billion in revenue and SEK3.0 billion in earnings by 2028. This scenario requires 6.2% annual revenue growth and a SEK0.9 billion increase in earnings from SEK2.1 billion today.

Uncover how Sweco's forecasts yield a SEK189.00 fair value, a 17% upside to its current price.

Exploring Other Perspectives

Two Community members valued Sweco between SEK165.68 and SEK189, giving a range of SEK23.32. With regional market headwinds still a concern, consider how differing opinions on future earnings shape sentiment.

Explore 2 other fair value estimates on Sweco - why the stock might be worth just SEK165.68!

Build Your Own Sweco Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Sweco research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Sweco research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Sweco's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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