Fagerhult (FAG) Q4 2025 earnings summary

Executive summary

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

• Acquisitions of Trato TLV and Capelon progressed as planned, contributing positively to sales, profit, and innovation.

• Renovation and cross-selling initiatives gained momentum, especially in data centers, public infrastructure, and international markets.

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

Financial highlights

• Q4 net sales reached SEK 2,077 million, up 1.8% year-over-year, with organic decrease of 1.6%; Q4 operating profit before IAC was SEK 196 million, up 37.1%, and EBITA before IAC was SEK 215 million, up 35.2%.

• Q4 operating margin before IAC improved to 9.4%; Q4 EPS before IAC was SEK 0.70.

• Full-year net sales were SEK 7,891 million, down 5% (organic decrease 5.8%); full-year operating profit before IAC was SEK 607 million, down 18.1%.

• Full-year EBITA before IAC was SEK 688 million, down 16.1%; full-year EPS before IAC was SEK 1.93.

• Operating cash flow for Q4 was SEK 345 million; full-year operating cash flow was SEK 740 million, down from SEK 964 million.

Outlook and guidance

• Facing tough Q1 2026 comparison due to large prior-year orders; market has not yet turned, though early positive signals are observed.

• Expansion in smart outdoor lighting continues, with new contracts in Norway and Sweden.

• Expect more public investment than private in coming years; lag in infrastructure spending due to slow government disbursement.

• No substantial acquisitions expected in 2026; may consider smaller complementary deals.

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