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.

• E-Mobility sales underperformed expectations, with a 21% Q4 decline and continued challenges across all regions, though notable deliveries were made to France and interest is growing in robust AC charging for heavy vehicles.

• Organization-wide sales training and integration between business areas were implemented to improve commercial effectiveness.

• New CEO Tobias Biefeld (or Byfeldt) appointed, with interim leadership in place until transition.

• Net sales for 2025 declined 9% year-over-year to MSEK 1,043.5, with Q4 sales down 8% to MSEK 261.0.

Financial highlights

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

• Adjusted operating profit (EBIT) for Q4 was MSEK -4.9, compared to MSEK 3.0 last year; full-year EBIT was MSEK -8.1, including MSEK 7.0 in non-recurring costs.

• Cash flow from operating activities after working capital changes was MSEK 37.0 in Q4 and MSEK 57.9 for the year.

• Net debt at year-end was MSEK 239.8, improved from MSEK 285.1 a year earlier; equity/assets ratio stood at 52.7%.

• No dividend proposed for 2025.

Outlook and guidance

• Early signs suggest core markets may strengthen in 2026, with public, commercial, and industrial demand remaining robust.

• Gradual market improvements are expected in both electrification and e-mobility, with a more positive outlook for 2026 and residential construction recovery anticipated.

• E-mobility segment undergoing in-depth analysis to achieve profitability, with results expected in Q2 2026.