Alfa Laval (ALFA) Q4 2025 earnings summary

Executive summary

• Q4 2025 net sales reached SEK 19.1 billion, up 4.6% year-over-year, with record full-year sales and EPS surpassing 20 SEK for the first time.

• Adjusted EBITA rose 11% to SEK 3.2 billion in Q4, with a margin of 16.9%, supported by strong Marine and Energy performance.

• Major reorganization completed, consolidating business units and simplifying the operating model as of January 2026.

• The Board proposes a dividend of SEK 9.00 per share.

• One-off costs and FX headwinds impacted results, but positive market momentum continues into 2026.

Financial highlights

• Q4 order intake was SEK 17.1 billion, down 8% year-over-year, with a 2.2% organic contraction and negative currency impact.

• Q4 revenues hit an all-time high of SEK 19.1 billion, up 4.6% year-over-year, with 10.9% organic growth.

• Adjusted EBITA margin for Q4 was 16.9%, up from 16.0% prior year.

• EPS for Q4 was SEK 4.79; full-year EPS exceeded 20 SEK, up 12% year-over-year.

• Free cash flow for Q4 was SEK 2.6 billion; annual cash flow from operations was SEK 9.2 billion.

Outlook and guidance

• Q1 2026 demand expected to remain at Q4 2025 levels, with Energy slightly lower, Food and Water higher, and Marine lower.

• CapEx guidance for 2026 is SEK 2.5–3 billion, with Q1 CapEx expected at SEK 0.7 billion.

• Tax rate guidance remains at 24–26%.

• Slightly elevated one-off costs anticipated in H1 2026 due to ongoing integration and restructuring.

• Market momentum is positive, with easing slowdown in large CapEx projects anticipated.