Cynca Nordic (CYNCA) Q4 2025 earnings summary

Executive summary

• Streamlined operations with five divestitures and two acquisitions in 2025, increasing specialization and profitability through M&A.

• Successfully refinanced the balance sheet, redeeming all outstanding bonds.

• Structural separation of the group initiated, with Flow Technology to be organized as a separate business and potential divestment under evaluation.

• Adjusted EBITA and cash flows grew, with margin expansion and stable performance despite a challenging market.

• Net sales for Q4 2025 were SEK 975 million, down 15% year-over-year; full-year net sales reached SEK 3,776 million, an 11% decrease mainly due to divestments and currency effects.

Financial highlights

• Achieved positive organic growth of 1% for the year despite a challenging macro environment.

• Adjusted EBITDA margin improved from 9.8% to 10.1% year-over-year; Q4 margin rose from 8.8% to 10.8%.

• Free cash flow (excluding net working capital changes) increased from SEK 127 million to SEK 137 million; LTM free cash flow reached SEK 111 million.

• Q4 net sales decreased by 15% year-over-year, mainly due to divestments in the Solutions segment, partially offset by acquisitions.

• Financial net debt/EBITDA increased to 3.4x at year-end, mainly due to acquisitions.

Outlook and guidance

• Flow Technology expected to benefit from UK AMP8 investment plan and new framework agreements in 2026.

• Gradual market recovery anticipated in Niche Products and Solutions, with focus on profitability and margin improvement.

• Solutions segment anticipated to see margin improvements as effects of divestments materialize throughout 2026.

• Market environment is slightly improving, with a turnaround in growth and margins expected by summer 2026.

• Board proposes no dividend for 2025; all profits to be reinvested.