ITAB Shop Concept (ITAB) Q4 2025 earnings summary

Executive summary

• 2025 was a transformative year with the HMY acquisition, creating a leading retail solutions provider and expanding sector and geographic reach, especially in Southern Europe.

• Integration of HMY is a strategic priority, with synergy realization progressing and a full impact of MEUR 30 targeted by 2027.

• Sales and earnings were stable despite challenging market and currency headwinds, with most operations meeting or exceeding profitability targets.

• Strong operating cash flow in Q4 at MSEK 821, with a rolling twelve-month figure of MSEK 785 and cash conversion at 72%.

• Leadership transition ongoing, with a new permanent CEO set to start in May 2026.

Financial highlights

• Full-year 2025 pro forma net sales reached MSEK 13,270, with adjusted EBIT at MSEK 847 and an adjusted EBIT margin of 6.4%.

• Q4 2025 net sales were MSEK 3,422, down 6% year-over-year, but up 3% excluding currency effects; adjusted EBIT was MSEK 199.

• Net debt reduced from MSEK 3,070 in Q3 to MSEK 2,332 in Q4, mainly due to strong cash flow and working capital initiatives.

• Factoring contributed approximately EUR 10 million to cash flow improvements.

• Gross margin and profit after tax were impacted by non-recurring costs, seasonality, and higher debt post-acquisition.

Outlook and guidance

• Full synergy effect of MEUR 30 expected by late 2027, with gradual realization starting from FY25.

• Focus remains on integration, profitability improvement, capital efficiency, and debt reduction.

• Tax rate expected to normalize toward 30% or below as turnaround initiatives progress.

• No dividend proposed for 2025; capital allocation prioritizes debt reduction and integration.

• Integration and operational footprint reviews planned for completion in the first half of 2026.