Alleima (ALLEI) Q4 2025 earnings summary

Executive summary

• Revenues for FY 2025 reached SEK 18,630 million, with flat organic revenue growth despite significant FX headwinds and mixed demand.

• Adjusted EBIT for the year was SEK 1,555 million, with a margin of 8.3%, impacted by negative currency effects.

• Oil & gas, nuclear, and medical segments performed well, while industrial and chem/petrochem segments, especially in Europe and North America, were weak.

• Targeted efficiency measures and cost savings were implemented, with SEK 342 million in one-off costs recognized in Q4.

• Free operating cash flow improved to SEK 422 million in Q4, and a dividend of SEK 2.50 per share is proposed.

Financial highlights

• Q4 2025 revenues were SEK 4,494 million, with organic revenue growth of -5% year-over-year.

• Adjusted EBIT for Q4 was SEK 364 million (8.1% margin), heavily impacted by FX headwinds.

• Adjusted EPS for Q4 was SEK 1.06; full-year adjusted EPS (diluted) was SEK 4.62.

• Free operating cash flow for FY 2025 was SEK 1,100 million.

• Net debt/equity ratio at -0.05x, indicating a strong net cash position.

Outlook and guidance

• Market uncertainty and currency headwinds are expected to persist into Q1 2026, with a solid backlog in key segments but continued weakness in short-cycle business.

• Q1 2026 EBIT expected to be negatively impacted by SEK 240 million in currency effects and SEK 50 million in metal price effects.

• CapEx for FY 2026 is guided at SEK 1,100 million, with key investments in steam generator tubing, industrial heating, and medical capacity.

• Normalized tax rate for 2026 expected at 23%-25%.

• Targeted efficiency measures will have a SEK 100 million negative cash flow effect in H1 2026.