CTEK (CTEK) Q4 2025 earnings summary

Executive summary

• Q4 2025 delivered strong profitability, with gross margin rising to 63.2% and net debt ratio reduced to 1.2, well below the target of 3, supported by robust cash flow and cost control.

• Net sales for Q4 2025 were SEK 209 million, stable year-over-year when excluding the discontinued General Motors EV business, which contributed SEK 46 million in Q4 last year.

• Several new products, including premium boosters and new EV charger models, were launched, expanding the addressable market and receiving positive feedback.

• Strategic plan execution and new product launches lay a foundation for growth in 2026 and beyond, with updated targets of SEK 2 billion in net sales and a 20% adjusted EBITA margin by 2028.

• Margins improved due to favorable product mix, price increases, and cost control.

Financial highlights

• Q4 2025 net sales: SEK 209 million (down from SEK 279 million in Q4 2024); full-year net sales: SEK 832 million (down from SEK 914 million in 2024).

• Q4 gross margin: 63.2% (up from 49.8%); Q4 adjusted EBITA: SEK 30 million (SEK 25 million); Q4 EBIT: SEK 27 million (loss of SEK 69 million).

• Q4 cash flow from operating activities: SEK 131 million (SEK 59 million prior year); cash flow after investment activities: SEK 118 million.

• Consumer division accounted for 75% of turnover, with organic sales declining from SEK 184 million to SEK 159 million due to currency and softer US market.

• Professional division net sales declined 45% to SEK 50 million, mainly due to the end of the General Motors EV business; adjusted EBITDA margin improved to 1.8% from -10.5%.

Outlook and guidance

• Positive outlook for 2026, with new product launches and a strong platform for growth; gradual sales increase expected.

• Strategic targets reaffirmed: SEK 2 billion net sales and 20% adjusted EBITA margin by 2028.

• No dividend proposed for 2025 to prioritize growth and business development.

• No expected increase in CapEx; sufficient resources for ongoing product development.

• Focus on expanding in power solutions and monitoring acquisition opportunities.