Essity (ESSITY) Q4 2025 earnings summary

Executive summary

• Q4 2025 delivered higher profit margins and increased market shares across business areas, despite flat or declining organic sales due to price reductions and lower input costs.

• Strategic acquisition of Edgewell's feminine care business in North America doubled U.S. personal care sales and supported future growth.

• Strong innovation, sustainability leadership, and organizational changes were key achievements.

• Board proposes a 6% dividend increase to SEK 8.75 per share, reflecting financial stability.

Financial highlights

• Q4 2025 net sales were SEK 34.7bn, down 8.2% year-over-year; full-year net sales reached SEK 138,494m.

• EBITA margin excl. IAC rose to 14.7% in Q4; full-year EBITA margin excl. IAC was 14.1%.

• EPS for Q4 was SEK 4.69, up 14% year-over-year; full-year EPS at SEK 18.37.

• Operating cash flow in Q4 was SEK 4.4bn; net debt/EBITDA improved to approximately 1.

• Board proposes a 6% dividend increase to SEK 8.75 per share.

Outlook and guidance

• 2026 priorities include profitable volume growth, Edgewell integration, SG&A savings, and operational flexibility.

• Cost savings program targets SEK 1bn annual savings by end of 2026, to be reinvested in growth.

• CapEx for 2026 guided at SEK 8–8.5bn, higher than 2025.

• Structural tax rate expected at 25–26%.

• New organization with decentralized decision-making effective January 2026.