Bawat Water Technologies (BAWAT) Q4 2025 earnings summary

Executive summary

• Achieved near EBITDA break-even in H2 2025, driven by strong growth in Ballast-as-a-Service (BaaS) activities across Western Europe.

• H2 2025 marked a turning point, with continued growth into 2026 and positive EBITDA guidance for the full year 2026.

• BaaS for ship recycling expanded following the Hong Kong convention's enforcement in June 2025.

Financial highlights

• H2 2025 sales reached SEK 13.0m, up from SEK 6.4m in H2 2024; full year sales increased 46.3% year-over-year to SEK 21.3m.

• Gross profit margin rose to 68.8% in H2 2025 from 27.6% in H2 2024, with full year margin at 58.7%.

• EBITDA improved to SEK -1.7m in H2 2025 from SEK -10.5m in H2 2024; full year EBITDA at SEK -11.6m.

• Earnings per share for H2 2025 was SEK -0.07, compared to SEK -0.27 in H2 2024.

• Cash flow from operations in H2 2025 was SEK 2.3m, a significant improvement from SEK -13.4m in H2 2024.

Outlook and guidance

• Positive EBITDA guidance for full year 2026 in the range of SEK 3-7m, supported by a strong backlog.

• Long-term gross profit margin expected to remain in the 50-55% range, depending on sales mix.

• Anticipates positive operating profit in H1 2026, driven by increased BaaS activity.