The managers note that, among the Q3 reports published so far, results have generally been positive, with price increases and restraint in cost growth.
"The organic development in short-cycle businesses can be summarized as slightly positive, with a decent performance in September, but without any clear increase in demand compared to previous quarters. As for profitability, gross margins improved in several of the larger holdings, supported by price hikes and cost initiatives," the managers write.
Efficiency measures further benefited operating margins, while currency fluctuations had a negative impact.
Additionally, the managers highlight Ericsson's report, which showed organic revenue growth of around 2%, while gross profit and gross margin rose by 1.4% and 1.8 percentage points respectively, adjusted for currency effects. The adjusted EBITA margin was supported by higher cost efficiency.
For Nokia, sales increased by 9% in the quarter, adjusted for currency, largely due to growth in network infrastructure and software businesses.
"At the end of the month, a partnership was announced between Nokia and Nvidia to develop next-generation base stations and strengthen Nokia's offering in data center connectivity. The new share issue to Nvidia gives Nokia a net cash position of around 4 billion euro."
SKF also reported organic sales growth of 2%, with industrial operations in Asia and the Americas cited as key drivers. Profitability improved, among other things, due to higher prices.
"The company continues its strategic restructuring with the goal of separating the automotive business, with over half of volumes already transferred to new legal entities. An IPO of the automotive division is planned for mid-2026."
Finally, Electrolux's Q3 report showed continued growth despite a challenging market environment, with sales growth of 4.6%. The operating margin came in at 2.8%, although the balance sheet remains described as weak. However, the managers expect a strong cash flow in the fourth quarter.
During the month, the fund made significant purchases in Alfa Laval, SKF, and Autoliv, while sales were made in Sandvik, Nokia, and Ericsson.
The largest holdings in the portfolio at the end of the month were SKF, Nordea, and Autoliv, with portfolio weights of 7.0%, 6.3%, and 6.2% respectively.
| Lannebo Sverige Plus, % | October, 2025 |
| Fund MoM, change in percent | 7.6 |
| Index MoM, change in percent | 4.1 |
| Fund YTD, change in percent | 15.0 |
| Index YTD, change in percent | 10.1 |
