Fagerhult (FAG) Q4 2025 earnings summary

Executive summary

• Q4 was the strongest quarter of the year, driven by efficiency, innovation, and structural improvements, with expansion in smart outdoor lighting in Sweden and Norway.

• Acquisitions of Trato TLV and Capelon were completed and are progressing as planned, contributing positively.

• Renovation, innovation, and cross-selling initiatives gained momentum, with sustainability efforts ongoing.

• Early signs of market recovery are noted, but a turnaround is not yet confirmed.

• Order backlog increased, driven by Professional and Infrastructure segments.

Financial highlights

• Q4 net sales reached SEK 2,077 million, up 1.8% YoY, with organic decrease of 1.6%.

• Q4 operating profit before IAC was SEK 196 million, up 37.1% YoY; EBITA before IAC was SEK 215 million, up 35.2% YoY.

• Q4 operating margin before IAC improved to 9.4% from 7.0% YoY; Q4 EBITA margin was 10.4%.

• Full-year net sales were SEK 7,891 million, down 5.8% organically.

• Full-year operating profit before IAC was SEK 607 million, down 18.1% YoY; EBITA before IAC was SEK 688 million, down 16.1%.

• Full-year EPS before IAC was SEK 1.93; Q4 EPS before IAC was SEK 0.70.

• Operating cash flow for Q4 was SEK 345 million; full-year operating cash flow was SEK 740 million.

Outlook and guidance

• Early 2026 faces tough comparatives due to large prior-year orders; positive signals in Nordics and public sector, but recovery not yet confirmed.

• Renovation projects, cross-selling, and smart outdoor lighting expansion expected to drive future growth.

• Board proposes a dividend of SEK 1.10 per share for 2025.