Arjo (ARJO) Q4 2025 earnings summary

Executive summary

• Organic sales grew 3.4% in Q4 and for the full year, reaching the lower end of the 3-5% target interval, with stable global demand but continued weakness in the UK and profitability pressured by currency, tariffs, and product/geographic mix.

• North America and several European and emerging markets saw growth, while the UK market remained challenging.

• Strong operating cash flow in Q4, with cash conversion at 119.9% in Q4 and 79.3% for the year, nearly meeting the 80% target.

• Successful product launches included Maxi Move 5 and Symbliss hygiene solution, with positive market reception.

• A new strategy process has been launched, with updated targets to be presented in H2 2026.

Financial highlights

• Q4 gross margin was 42.1%, down from 44.7% year-over-year, mainly due to currency, tariffs, and unfavorable product mix.

• Q4 adjusted EBIT was SEK 249 million (down from 375 million); EBIT margin fell to 8.9% from 12.5%.

• Q4 adjusted EBITDA was SEK 526 million (653 million); full-year adjusted EBITDA was SEK 1,922 million (2,086 million).

• Operating cash flow improved to SEK 600 million in Q4, up SEK 121 million year-over-year, driven by inventory reduction and strong receivables collection.

• Proposed dividend of SEK 0.95 per share, totaling SEK 259 million.

Outlook and guidance

• Organic net sales growth for 2026 expected at 3-5%, in line with the Group's target.

• New strategy and financial targets to be presented in H2 2026, with a focus on efficiency and cost control.