4C Group (4C) Q4 2025 earnings summary

Executive summary

• Q4 2025 net sales were SEK 113.1 million, flat year-over-year, with 74% from software and a 21% adjusted EBIT margin; full-year net sales reached SEK 352.4 million, up 3%, with software at 64% and adjusted EBIT margin at 2%.

• Order intake for Q4 was SEK 185 million, with SEK 126 million from software; year-end order book stood at SEK 332 million, about half to be delivered in 2026.

• Full-year EBIT improved to SEK 8.6 million from -5.9 million, but net income was negative at SEK -16.8 million, impacted by currency movements and interest expenses.

• Strategic reorganization in resilience led to SEK 40 million in annual cost reductions, a more focused team, and a target for positive cash flow in 2026 and EBIT in 2027.

• Cash flow was negatively affected by U.S. market developments, working capital, and payment timing.

Financial highlights

• Q4 adjusted EBIT was SEK 23.3 million (21% margin), down from SEK 26.5 million (23%) in Q4 2024; full-year adjusted EBIT margin improved to 2% from -2%.

• Q4 net income was SEK 15.0 million; full-year net loss was SEK -16.8 million.

• Annual recurring revenue (ARR) at year-end was SEK 214.7 million, up from SEK 163.8 million, with defense accounting for about 70% of the growth.

• Cash and cash equivalents at year-end were SEK 11.5 million; cash flow from operating activities for the year was SEK -47.0 million.

• Order book at year-end was SEK 332 million, up nearly 50% from 2024.

Outlook and guidance

• Priorities for 2026 include customer delivery, strengthening profitability, and growth in defense, with selective Resilience operations and profitable Expert Services.

• Cost reductions in Resilience (~SEK 40 million annually) to be fully implemented by Q1 2026.

• No formal full-year financial guidance provided; potential update expected later in 2026.

• Large defense procurement opportunities are expected to progress in 2026, though timing remains uncertain.

• Management expects improved cash flow and sufficient financing for the next twelve months.