eWork Group (EWRK) Q4 2025 earnings summary

Executive summary

• Navigated a challenging and uncertain market with declining order intake, intense competition, and client cost-saving measures, especially in Sweden, resulting in lower sales and earnings for Q4 and the full year.

• New CEO Daniel Almgren appointed in November 2025 with a transformation mandate, focusing on digitalization and AI-powered services.

• Continued expansion into new geographies, with Belgium operational and Germany planned for 2026, aiming for a more diversified revenue base.

• Transformation program and organizational simplification initiated, expected to yield annual cost savings of SEK 18 million.

• Several strategically important contracts and renewals secured, and new digital platform and AI services launched.

Financial highlights

• Q4 2025 net sales: SEK 3,639M, down 13% year-over-year; full-year net sales: SEK 13,741M, down 13%.

• Q4 EBIT: SEK 16M (down 70% YoY), impacted by SEK 20M in non-recurring IT write-offs; adjusted EBIT: SEK 36M.

• Full-year EBIT: SEK 123M (down from SEK 190M); adjusted EBIT: SEK 151M.

• Gross margin improved to 4.1% in Q4 and full-year, driven by more profitable contracts and value-adding services.

• Board proposes a dividend of SEK 4 per share, down from SEK 7, exceeding the 75% net profit target.

Outlook and guidance

• Market environment expected to remain weak with ongoing customer cost-cutting and hiring freezes; no clear signs of short-term recovery.

• EPS projected to decrease by 10%-20% for the full year 2026.

• Reorganization aims to generate annual cost savings of SEK 18M, with SEK 9M in restructuring costs expected in Q1 2026.

• Focus remains on increasing business volumes, enhancing customer focus, and driving sales.