Swedish automotive powerhouse Bilia AB kicked off the trading day with fireworks, as its shares rocketed 7% in early Stockholm trading on Thursday after third-quarter results that handily outpaced Wall Street forecasts. The earnings beat, fueled by resilient service operations amid softer car sales, signals steady demand in Europe’s auto aftermarket and offers a bright spot for investors eyeing recovery in the electric vehicle (EV) transition.
The report, released before the market open on October 23, 2025, highlighted Bilia’s knack for squeezing profits from its vast network of dealerships and workshops across Scandinavia. With net revenue climbing 8.2% year-over-year to SEK 9,717 million—smashing analyst consensus of SEK 9,377 million—the company underscored its dominance as Sweden’s top car retailer, handling brands like Volvo, Toyota, and Polestar.
Adjusted operating profit hit SEK 310 million, a 10.3% jump from last year’s SEK 281 million and well above the SEK 292 million expected by Modular Finance polls. That pushed the operating margin to a crisp 3.2%, edging out the 3.1% forecast. Net profit more than doubled to SEK 191 million from SEK 105 million, while operating cash flow surged 65% to SEK 792 million. The service segment, a profit engine, posted 4% organic growth, offsetting headwinds in new car volumes.
Bilia also unveiled a cost-saving blitz, targeting SEK 150 million in annual efficiencies through organizational streamlining. The one-time hit? A modest SEK 25 million in Q4 2025. CEO Per Avander hailed the moves as “proactive steps to sharpen our edge in a dynamic market,” per the earnings call.
Digging Deeper: Service Strength vs. Sales Soft Spot
Bilia’s Q3 snapshot paints a mixed auto sector picture in Northern Europe. While new car sales dipped amid high interest rates and EV subsidy tweaks, orders rebounded 20% year-over-year, hinting at pent-up demand from private buyers and corporates. The service arm—workshops and parts—shone brightest, capitalizing on aging fleets and rising repair needs as consumers hold off on upgrades.
Background: Founded in 1945, Bilia operates over 140 locations in Sweden, Norway, Finland, Denmark, and Belgium, with a heavy EV tilt—30% of new sales in Q3 were electric. The company’s pivot to aftersales has buffered it against supply chain snarls that hammered peers like D’Ieteren Group or Hedin Bil. Yet, used car inventories balloon with incoming EVs, prompting Bilia’s low-stock strategy to avoid markdowns.
Analyst takes? Carnegie’s Daniel Thorsson upgraded to “Buy” post-earnings, citing the margin resilience: “Bilia’s service moat delivers in tough times—expect 4-5% organic growth through 2026.” Swedbank, however, tempered enthusiasm, noting “EV oversupply risks could pressure used margins into 2026.” Shares traded at a forward P/E of 8.5x, a bargain versus the STOXX Europe Autos index’s 10x.
Why U.S. Investors Should Watch Bilia’s Momentum
For American eyeballs on global plays, Bilia’s surge ties into broader EV and auto repair trends. With U.S. firms like AutoNation or Lithia Motors facing similar service booms—up 6% YoY per NADA data—Bilia offers diversification into Europe’s greener grid. Politically, Sweden’s aggressive net-zero push mirrors Biden’s IRA incentives, potentially juicing cross-Atlantic EV demand. Lifestyle-wise, as remote work keeps cars on roads longer, aftermarket services could add $50 billion to the sector by 2030, per McKinsey.
Technologically, Bilia’s digital booking tools and EV charging integrations position it for the connected car era, appealing to tech-savvy U.S. funds like ARK Invest. Economically, a stronger Swedish krona (up 2% post-earnings) could boost importer margins, indirectly lifting U.S. auto parts suppliers.
As Q4 looms with holiday sales and potential rate cuts, Bilia eyes cautiously upbeat new car trends. Stakeholders from Detroit to Stockholm are tuning in—this beat could rev up a sector in neutral.
By Sam Michael
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