Brødrene A & O Johansen (AOJ) Q4 2025 earnings summary

Executive summary

• FY 2025 revenue reached DKK 6.121 billion, up 12.7% year-over-year and slightly above guidance, with EBITDA at DKK 434 million and EBT at DKK 260 million, both within guided ranges.

• Q4 sales hit a record high, up 8% year-over-year, with strong organic growth in both B2B and B2C segments.

• Customer numbers and daily store visits reached all-time highs, and B2C sales surpassed DKK 1 billion for the first time.

• Acquisitions in 2024 contributed 23% revenue growth and 85% earnings improvement over prior year.

• Proposed dividend of DKK 3.75 per share, representing 52% of net result, continuing a five-year trend of 50%+ payout.

Financial highlights

• Full-year organic growth was 8.4%, with an additional 4.3% from acquisitions.

• Gross margin improved to 24.3% from 23.3% in 2024, driven by higher B2C margins and product mix.

• EBITDA for FY 2025 was DKK 434 million (7.1% margin), up from DKK 366 million (6.7%) in 2024.

• Net working capital rose to 7.6% of revenue from 7.1% last year, reflecting broader assortment and increased credit demand.

• Net interest-bearing debt/EBITDA ended below 2.5x, down from 2.7x.

Outlook and guidance

• 2026 revenue guidance: DKK 6.4–6.6 billion, 4.6%–7.8% growth over 2025, with market growth of 1%–3% and additional growth from acquisitions and market share gains.

• EBITDA guidance for 2026 is DKK 460–500 million (7.0%–7.8% margin), with EBT of DKK 260–300 million (3.9%–4.7% margin).

• Margins expected to be slightly higher, but cost and salary inflation (3%) and additional investments will increase SG&A by 5%–6%.

• Additional DKK 25 million in depreciation expected in 2026 due to higher investments and growth initiatives.

• Q1 2026 activity lower than expected due to climate, but full-year guidance unchanged.