Festi (FESTI) Q4 2025 earnings summary

Executive summary

• Q4 results exceeded management expectations; sale of goods and services rose 7.2% YoY to ISK 45.0 bn, while margin from sales increased 11.2%.

• Q4 EBITDA rose 43.9% YoY to ISK 4.3 bn, or 14.8% excluding a prior-year administrative fine; net cash from operating activities increased 86.3% to ISK 1.5 bn.

• FY 2025 operating revenue reached ISK 175,727 million (+12.1%), EBITDA was ISK 16,001 million (+27.9%), and net profit was ISK 6,220 million, up from ISK 4,018 million.

• All operating companies improved results, with growth driven by increased business, efficiency and synergies; Lyfja was consolidated from July 2024.

• The initial FY EBITDA forecast was exceeded and revised upward twice during the year.

Financial highlights

• Q4 margin from sales was ISK 11.4 bn (25.4%), up 0.9 p.p. YoY; Q4 profit was ISK 1.9 bn, down ISK 1.1 bn YoY amid a high base effect.

• Salaries and personnel expenses rose 6.9% YoY to ISK 5.6 bn, with FTEs up 3.8%; other operating expenses fell 17.6%.

• FY gross profit from sales was ISK 43,692 million, up from ISK 36,722 million; operating profit was ISK 10,111 million, versus ISK 7,723 million in 2024.

• Basic EPS was ISK 20.00, up from ISK 13.13; diluted EPS was ISK 19.77.

• A dividend of ISK 7 per share was proposed for 2026.

Outlook and guidance

• 2026 EBITDA guidance is ISK 16,500–17,000 million, with CAPEX of ISK 6,500–7,000 million; improved performance is expected across all segments.

• Positive outlook despite economic uncertainty and inflation; assumptions include 4% inflation, minimal supply-chain impact from geopolitical conflicts and stable central bank rates.

• Focus remains on efficiency, integration, optimisation and development projects.