Bergman & Beving (BERG) Q4 24/25 earnings summary

Executive summary

• Revenue and EBITA increased year-over-year, with EBITA margin improving to 9.8% and adjusted EPS reaching a record SEK 8.05, despite a sluggish Nordic construction and industrial market.

• Adjusted EBIT/EBT rose 23%, and profitability gains were driven by acquisitions and efficiency measures.

• Eight acquisitions were completed, expanding presence in high-growth technology niches; two more occurred after year-end.

• Agreement signed to divest Skydda Nordic, resulting in a SEK 270 million goodwill impairment and restructuring costs, with a net loss for the year.

• The board proposed a dividend increase to SEK 4.00 per share, up from SEK 3.80.

Financial highlights

• Turnover and EBITA both increased by 8% year-over-year; EBITA margin held at 9.5% in Q4 and 9.8% for the year.

• Adjusted EPS improved to SEK 8.05 from SEK 7.15; reported EPS was SEK -1.95 due to goodwill impairment.

• Net debt rose to SEK 1,278 million (from SEK 1,057 million), mainly due to SEK 402 million in acquisitions.

• Inventory reduced organically by SEK 80 million year-over-year; cash flow from operating activities was SEK 28 million in Q4 and SEK 509 million for the year.

• Return on working capital improved to 31% (from 26%), with a target of 45% by March 2027.

Outlook and guidance

• Market recovery is not expected until the second half of the financial year; continued sluggishness anticipated in the near term.

• Focus remains on profit expansion over revenue growth, with ongoing efficiency and cost control measures.

• Acquisition pace will be maintained, targeting SEK 50–80 million in annual earnings from acquisitions and focusing on niche B2B technology companies.

• Management expects continued profit growth despite an uncertain environment, supported by a decentralized model.

• Export sales to the US represent about 2% of revenue, with minimal expected impact from tariffs.