Essity (ESSITY) Q4 2025 earnings summary

Executive summary

• Q4 2025 delivered higher profit margins and increased market shares across business areas, despite a decline in organic and net sales due to price reductions and challenging market conditions.

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

• Recognized for sustainability with EcoVadis Platinum Medal and CDP A list placement; emissions and safety targets on track.

• Organizational changes and a new cost savings program were launched to accelerate growth and increase operational flexibility.

• Board proposes a 6% dividend increase, reflecting confidence in financial stability.

Financial highlights

• Q4 2025 organic sales declined by 1.1%, with net sales at 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, with full-year EBITA margin at 14.1%; Q4 EBITA increased 9% to SEK 5,117m.

• EPS for Q4 2025 was SEK 4.69, up 14% year-over-year; full-year EPS at SEK 19.4, a 58% increase since 2017.

• Operating cash flow in Q4 was SEK 4.4bn; full-year operating cash flow SEK 14,998m.

• Net debt/EBITDA improved to approximately 1 at year-end.

Outlook and guidance

• Priorities for 2026 include driving profitable volume growth, integrating the Edgewell acquisition, and executing cost savings of SEK 1bn annually by end of 2026.

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

• Structural tax rate expected at 25–26%.

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

• Ambition to accelerate organic growth toward 3% target, focusing on market share and strategic segments.