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 operations to 24 production facilities in 17 countries, with 5,300 employees and SEK 13 billion in revenue.

• Integration of HMY diversified customer sector exposure, expanded geographical reach, and is on track to deliver MEUR 30 in synergies by 2027.

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

• Strong cash flow from operating activities, up 26% year-over-year to MSEK 785, and significant net debt reduction in Q4.

• CEO transition occurred, with a new permanent CEO set to start in 2026.

Financial highlights

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

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

• Operating cash flow in Q4 reached 821 MSEK, with rolling twelve-month cash conversion at 72%.

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

• Gross margin was impacted by non-recurring costs and seasonality, particularly in December.

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 is expected to normalize toward 30% or below over the next few quarters as turnaround initiatives progress.

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