Arctic Falls (ARFA) Q4 25/26 earnings summary

Executive summary

• Achieved 4% annual revenue growth to 159.3 MSEK despite a challenging environment, with improved Q4 profitability and strong cash flow.

• Q4 2025/2026 revenue grew 2.7% to 31,410 TSEK, operating profit up 27.4% to 9,249 TSEK (29.4% margin).

• Completed TISAX Level 3 review and certification, and advanced contract negotiations with Volvo Cars, including a letter of intent for a new winter test facility.

• Extended contract with a key customer and completed stock exchange listing.

• Dividend proposal of 1.75 SEK/share, totaling 15.8–16 MSEK.

Financial highlights

• Annual net revenue increased by 4% to 159.3 MSEK, with growth in both customer segments.

• Q4 net revenue rose 2.7%, mainly from expanded contracts with existing customers.

• EBIT for the year was 51.0 MSEK (32.0% margin), with adjusted EBIT at 57.4 MSEK (36.1%).

• Q4 EBIT improved to 9.2 MSEK (29.4% margin), up from 7.3 MSEK (23.7%) year-over-year.

• Cash and bank at year-end: 28,590 TSEK, with strong cash flow and reduced net debt to 119 MSEK from 148 MSEK.

Outlook and guidance

• Growth expected from increased utilization of facilities, new services for contract customers, and new customer acquisition.

• Strong booking outlook for indoor testing facilities in upcoming periods.

• Financial targets: annual growth of 10–20%, EBIT margin around 40% mid-term, net debt/EBITDA below 3x, and dividend payout of 30–50% of net income.