Core Insights - Aalberts reported a revenue of EUR 772.5 million for Q3 2025, reflecting a 1.9% organic revenue decline compared to the same quarter last year [1] - The company achieved an EBITA of EUR 96.3 million, resulting in a 12.5% EBITA margin [1] Financial Performance - The revenue decline is attributed to challenging market conditions, with a focus on margin protection and operational efficiency [2] - Free cash flow improved due to lower inventories and reduced capital expenditures [2] Strategic Initiatives - Aalberts is progressing with portfolio optimization, including the intended acquisition of GVT in the Southeast Asian semiconductor market, expected to close soon [3] - Integration efforts for Paulo and Geo-Flo in North America are on track, while divestment opportunities in building and industry segments are being explored [3] Management Commentary - CEO Stéphane Simonetta noted that performance is affected by soft end markets, but the company is focused on maintaining service levels and controlling internal factors [4] - The company anticipates a full-year EBITA margin of around 13%, indicating ongoing challenges, particularly in the building segment [4]

Core Insights - Global trade has become increasingly uncertain, with tariffs now a permanent aspect of the economic landscape for U.S. businesses [1][6] - Mid-market companies are focusing on maintaining profitability while managing customer relationships amidst rising costs [2][4] Impact of Tariffs - 90% of goods firms and over 70% of services firms have raised prices due to tariffs and macroeconomic pressures, yet 75% of goods executives and nearly 50% of services firms report shrinking profit margins [3] - Approximately 75% of goods and services companies have experienced weakening demand, indicating that higher prices may not sustain sales volumes and could harm brand loyalty [4] Strategic Adjustments - Many firms are opting for structural changes rather than solely relying on price increases, with nearly all mid-market firms implementing strategies beyond price hikes [5] - Key strategies include product discontinuations, redesigns, and supplier negotiations to manage costs without further burdening consumers [9] Long-Term Perspective on Tariffs - Nearly half of product leaders view tariffs as a permanent fixture in U.S. trade policy, prompting firms to invest in redesign and supply chain restructuring [6][7] - Executives with a positive business outlook are more likely to treat tariffs as a long-term issue, facilitating proactive planning [7] Regulatory Uncertainty - Over 70% of executives report moderate regulatory uncertainty, which has increased from the previous year, adding complexity to operational decisions [10] - The combination of tariffs and regulatory changes has led firms to delay investments and increase compliance spending, necessitating structural adaptations to maintain margins [11]