Energy Save (ESGR) Q4 25/26 earnings summary

Executive summary

• Q4 2025 net revenue rose 33% year-over-year to SEK 70.3 million, with a 52% sequential increase from Q3, driven by strong OEM sales (+41%) and ES brand growth (+14%).

• Operating expenses decreased by 28% due to a savings package, resulting in positive EBIT of SEK 1.2 million and an EBIT margin of 1.6%.

• Gross margin improved to 31% in Q4 from 25% in Q4 2024.

• The board appointed Yibo Zhao as the new CEO, with Fredrik Sävenstrand transitioning to Working/Executive Chair to focus on strategic partnerships and OEM business.

• Strengthened international distribution, launched new propane and digital platforms, and continued construction of a factory in Turkey.

Financial highlights

• Operating income for Q4 was SEK 71.4 million, up 13% from SEK 63 million in Q4 2024.

• Net profit reached SEK 712 thousand, reversing a loss of SEK -4.9 million in Q4 2024.

• Personnel expenses fell 10% to SEK 9.5 million, and other external costs dropped 40% year-over-year.

• Inventories declined 15% in Q4, ending at SEK 84.3 million; cash and bank balances down 57% year-over-year.

• Operative cash flow was negative SEK 11.1 million, impacted by high receivables and a SEK 7 million loan payment.

Outlook and guidance

• Management expects lower revenue in early 2026 due to seasonality, but anticipates break-even EBITDA for the full year, driven by contracted OEM volumes and new product platforms.

• Growth in commercial segment anticipated due to new propane platform and increased distributor orders.

• Strong sales pipeline for OEM business in H2 2026, supported by EU electrification policies.

• Strategic focus on OEM partnerships and digital solutions to drive growth.