CTEK (CTEK) investor relations material

Executive summary

• Margins and profitability strengthened in Q4 2025, with gross margin up to 63.2% from 49.8% year-over-year, and adjusted EBITA margin rising to 14.3% from 9.1%, despite lower turnover due to the end of a major contract and currency headwinds.

• Net sales for Q4 2025 reached SEK 209 million, with underlying sales stable year-over-year when excluding the discontinued EV business with General Motors, which contributed SEK 46 million in Q4 last year.

• Strong cash flow from operating activities supported a reduction in net debt/adjusted EBITDA to 1.2x from 1.8x, providing financial flexibility.

• Launched several new products, including premium boosters, expanded EV charger offerings, and models like CS ONE Wi-Fi, NXT 5 & 15, and RB3000 & RB4000, targeting both consumer and professional segments.

• Maintained strategic focus on organic growth, product innovation, and market expansion, with updated financial targets aiming for SEK 2 billion in net sales and a 20% adjusted EBITA margin by 2028.

Financial highlights

• Q4 net sales: SEK 209 million (down from SEK 279 million year-over-year); full-year net sales: SEK 832 million (down from SEK 914 million in 2024).

• Q4 gross margin: 63.2% (up from 49.8%); Q4 adjusted EBITA: SEK 30 million (up from SEK 25 million); Q4 EBIT: SEK 27 million (up from -SEK 69 million); Q4 profit after tax: SEK 13 million (up from -SEK 47 million).

• Q4 cash flow from operating activities: SEK 131 million (up from SEK 59 million); cash and cash equivalents at year-end: SEK 166 million (up from SEK 142 million).

• EBITDA margin in Consumer Division at 40.4% for Q4, up from 38.1% last year; Professional Division adjusted EBITDA margin improved to 1.8% from -10.5%.

• Net cash at SEK 118 million at quarter-end; leverage ratio reduced to 1.2, well below target of 3.

Outlook and guidance

• Positive outlook for 2026, with growth expected from new product launches, margin improvements, and expansion in Power Solutions and premium chargers.

• Financial targets reaffirmed: SEK 2 billion net sales and 20% adjusted EBITA margin by 2028.

• No dividend proposed for 2025 to prioritize growth and business development.

• No significant short-term impact expected from potential EU policy changes on EV adoption; plug-in hybrids seen as a growth area.

• Continued focus on add-on acquisitions in power solutions, with ongoing market monitoring.