engcon (ENGCON) Q4 2025 earnings summary

Executive summary

• Achieved 34% organic net sales growth in Q4 2025 to SEK 498 million, with strong contributions from the Nordics and Europe, and order intake up 12% to SEK 539 million, mainly driven by Sweden.

• Market share increased by 5 percentage points to 49%, reflecting successful long-term investments and execution.

• Margins were pressured by currency effects, tariffs, legal and IT costs, and less favorable market mix.

• Entered the large cap segment, established a sales company in Japan, and expanded presence in Italy and France through partnerships.

• Ongoing legal disputes and geopolitical instability created operational uncertainty, especially in the Americas.

Financial highlights

• Q4 net sales: SEK 498 million, up 34% organically year-over-year; order intake: SEK 539 million, up 12% organically.

• Q4 gross margin: 40.2%, down from 42.7% last year, mainly due to currency and market mix.

• Q4 EBIT: SEK 72 million, up 15% year-over-year; operating margin at 14.5% (down from 16.0%).

• ROCE: 35.9% in Q4, below the 40% target, affected by lower profitability and higher inventory.

• Board proposes a dividend of SEK 1 per share, about 50% of net profit, to be paid in two installments.

Outlook and guidance

• Expect continued growth in Europe and the Nordics, with positive order intake trends and focus on pricing, product packaging, and cost discipline to improve margins.

• Americas outlook remains uncertain due to tariffs and market caution, but long-term potential is strong.

• Asia-Oceania growth led by Japan, with volatility expected; infrastructure projects and government incentives seen as catalysts.

• Targeting EBIT margin improvement to 20% by 2026 through internal measures.

• Cash flow expected to improve as inventory build-up supports sales increase in spring.