Is Bilia's Strong Q3 Earnings Momentum Altering the Investment Case for Bilia (OM:BILI A)?

• Bilia AB reported its third quarter 2025 earnings, showing sales of SEK 9,717 million and net income of SEK 191 million, both higher compared to the previous year.
• A significant year-over-year increase in both quarterly and nine-month earnings highlights stronger operational performance across the company’s core segments.
• We'll explore how Bilia's improved earnings and sales growth might influence its investment narrative and future prospects.

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Bilia Investment Narrative Recap

Owning shares in Bilia means believing in the company’s ability to profit from a steady shift toward older and electric vehicles, leveraging both its physical network and new partnerships to capture recurring service and sales opportunities. The recent strong third-quarter earnings, with higher sales and net income, reinforce optimism for near-term earnings resilience, though they do not fully address the continued risk of weak Swedish new car demand compressing long-term revenue growth.

Among the latest company updates, Bilia’s planned expansion with three new Swedish facilities by early 2026 stands out. This move connects directly to the key catalyst of growing aftersales and service revenue, supporting the company’s core focus as vehicle age rises and the segment’s recurring earnings importance increases.

On the other hand, investors should also watch for ongoing margin pressure if used car demand weakens again, since...

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

Bilia's narrative projects SEK44.3 billion in revenue and SEK1.2 billion in earnings by 2028. This requires 3.7% yearly revenue growth and a SEK559 million earnings increase from the current SEK641 million.

Uncover how Bilia's forecasts yield a SEK146.00 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community have estimated Bilia’s fair value from SEK108.98 to SEK542.64 per share. As Swedish new car sales remain well below historical averages, consider the spread of investor perspectives and the risks this brings for future revenue stability.

Explore 4 other fair value estimates on Bilia - why the stock might be worth 18% less than the current price!

Build Your Own Bilia 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 Bilia research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Bilia research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Bilia'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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