Garo (GARO) Q4 2025 earnings summary

Executive summary

• Electrification remains the core business, showing resilience and growth in Sweden and the Nordics despite a weak construction market, supported by key contracts like Förbifart Stockholm and Mariestad prison.

• E-Mobility sales underperformed expectations, with a 21% decline in Q4 and a 25% drop for the year, though robust charger deliveries to France and growing interest in AC charging for heavy vehicles were noted.

• Organization-wide sales training, integration of business areas, and leadership transition with Tobias Biefeldt appointed as new President and CEO aimed to standardize processes and improve profitability.

• Cash flow from operating activities improved, and no dividend was proposed for 2025.

• ERP project nearing completion, with significant costs incurred during the year.

Financial highlights

• Q4 net sales were SEK 261 million, down 8% year-over-year; full-year net sales were SEK 1,043.5 million, down 9%.

• Adjusted operating profit (EBIT) for Q4 was SEK -4.9 million, with a margin of -1.9%; full-year EBIT was SEK -8.1 million, including SEK 7 million in non-recurring costs.

• Electrification segment Q4 net sales: SEK 212 million (down SEK 10 million year-over-year); EBIT: SEK 17 million (down from SEK 26 million).

• E-Mobility segment Q4 net sales: SEK 49 million (down 21%); EBIT: -SEK 21 million.

• Cash flow from operating activities after working capital changes was SEK 37 million in Q4; full-year cash flow was SEK 57.9 million.

Outlook and guidance

• Early signs of market strengthening expected in 2026, with public, commercial, and industrial demand remaining robust.

• Gradual improvements anticipated in both electrification and e-mobility segments, with residential construction recovery expected in 2026.

• In-depth analysis of E-Mobility business ongoing, with results expected in Q2 2026; all options, including divestment, are being considered.