BALCO GROUP (BALCO) Q4 2025 earnings summary

Executive summary

• Order intake reached a record SEK 521 million in Q4, up 45% year-over-year, and SEK 1,537 million for the full year, up 12%, driven by a major SEK 200 million maritime order and strong performance in Germany, UK, and Sweden.

• Net sales declined to SEK 371 million in Q4 (SEK 386 million prior year) and SEK 1,295 million for the year (SEK 1,418 million prior year), with organic growth of 1% and a negative currency effect of 5%.

• Operating cash flow was strong at SEK 125 million in Q4, up from SEK 58 million last year, and SEK 100 million for the year.

• Structural cost-saving measures implemented in 2025 are expected to yield annual savings of SEK 55 million.

• Sustainability metrics improved, with a top 5% industry risk rating, reduced CO2 emissions, and lower sickness absence and employee turnover.

Financial highlights

• Adjusted EBITA for Q4 was SEK 9 million (SEK 18 million prior year), with a margin of 2.4% (4.7%).

• Adjusted earnings per share for Q4 were SEK -0.04 (SEK 0.28 prior year).

• Order backlog increased 16% to SEK 1,523 million.

• Equity at quarter-end was SEK 736 million (SEK 793 million prior year); equity/assets ratio 43% (49%).

• Net debt/adjusted EBITDA was 6.0x (2.5x prior year), improved from 6.8x in Q3.

Outlook and guidance

• Cautiously optimistic outlook for 2026, especially for renovation projects in Sweden and Norway; new build segment recovery in Nordics expected to take longer.

• Finland expected to recover more slowly, with growth anticipated in the renovation segment.

• Growth potential seen in Germany, UK, and the maritime segment.

• Profitability is expected to improve in 2026 due to restructuring and cost-saving measures.

• The Board proposes no dividend for the financial year.