AddLife (ALIF) Q4 2025 earnings summary

Executive summary

• EBITA and EBITDA margins improved across both Labtech (14.1%) and Medtech (12.0%), with overall margin at 12.4% in Q4 and 12.1% for the year, driven by profit growth and operational efficiency.

• Organic and acquired revenue growth was 2% in Q4, with full-year net sales up 2% to SEK 10,442m; profit before tax increased 129% in Q4, and profit after tax rose 121% for the year.

• Divestment of the UK endoscopy business generated SEK 158 million, supporting significant net debt reduction and balance sheet strength.

• Three acquisitions (Pharmacold, Opitek, Edge Medical) were completed, supporting strategic growth and future expansion.

• Currency effects negatively impacted reported sales and EBITA/EBITDA, but underlying organic and acquired growth remained positive.

Financial highlights

• Adjusted EBITA increased 8% to SEK 1,259m, with an adjusted EBITA margin of 12.1%; EBITA (including divestments) rose 22% to SEK 1,417m.

• Q4 organic and acquired revenue growth was 2%, with adjusted EBITDA growth of 5%; net sales reached SEK 2,733m in Q4.

• Operating cash flow was nearly SEK 900 million in Q4 and SEK 1.4 billion for the year, up 27% year-over-year.

• Net debt/EBITDA reduced to 2.2, well below the target of 3, and net debt/equity ratio improved to 0.7.

• Inventory to sales improved to 16% from 17% in 2024.

Outlook and guidance

• Management expects continued margin improvement and profit growth, with ongoing focus on high-margin products and operational efficiency.

• Strengthened balance sheet enables increased acquisition activity, with a healthy M&A pipeline and plans for more acquisitions in 2026.

• Positive outlook for 2026, supported by robust demand for advanced healthcare products and a proposed dividend increase.