Alimak targets £6m savings as construction profits fall

Alimak will cut costs across several sites from next year after European demand for new equipment stayed weak, even as construction orders climbed 10%.

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Alimak Group is targeting SEK80 million (about £6 million) in annual savings as its construction business faces weak European equipment demand and lower profitability.

The vertical access and working-at-height supplier set out the measures in its third-quarter results, published on 23 October. It expects the savings to take full effect from the second quarter of 2027.

Construction accounts for SEK30 million (about £2.3 million) of the planned annual savings, with a further SEK20 million (about £1.5 million) from Facade Access. The group said the measures span several locations. Implementation costs are expected to total SEK40 million (about £3 million).

Construction revenue fell 4% to SEK318 million (about £23.9 million) in the quarter, while divisional EBITA halved to SEK22 million (about £1.7 million). Its margin declined from 13.3% to 6.9%.

There were contrasting signals on demand. Construction orders rose 10% to SEK398 million (about £29.9 million), driven by India and Australia. Alimak said new equipment demand in Europe remained subdued, but parts and service performed well, particularly in Australia and the UK.

Across the group, revenue increased 8% to SEK1.783 billion (about £134.1 million) and adjusted EBITA reached SEK318 million (about £23.9 million). Organic revenue declined 2%, excluding currency and acquisition effects.

The results cover July to September. Further divisional figures and the savings programme are detailed in Alimak’s interim report.

Daniel Norton
Daniel NortonFounder & Editorhttps://www.scaffmag.com
Daniel Norton is the founder and editor of Scaffmag and Editor-in-Chief of Scaffold & Access Magazine. A former scaffolder, he founded Scaffmag in 2008 and now leads its news and editorial coverage of the global scaffolding and access industry, including safety, regulation, business, innovation and major industry events.

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