Kesko (KESKOB) Q4 2025 earnings summary

Executive summary

• Net sales and comparable operating profit grew across all divisions in 2025, with a turnaround in H2 and Q4 despite challenging markets and low consumer confidence.

• All divisions—grocery, building and technical trade, and car trade—gained market share and reported improved or stable profitability.

• Strategy focused on quality, price, and network expansion drove customer satisfaction and increased visits.

• The Board proposes a dividend of €0.90 per share, payout ratio 84%, to be paid in four instalments.

Financial highlights

• Net sales for 2025 reached €12,474.7 million, up 2.3% in comparable terms and 4.7% year-over-year.

• Comparable operating profit was €654.9 million, up €4.8 million year-over-year; operating margin 5.3%.

• Earnings per share (comparable) was €1.07; reported €1.02.

• Cash flow from operating activities was €879.7 million, impacted by working capital changes and regulatory effects.

• Capital expenditure totaled €735.7 million, mainly for acquisitions and store investments.

Outlook and guidance

• 2026 comparable operating profit estimated at €650–750 million, with improvement expected in all divisions and countries.

• Grocery trade margin expected to remain above 6% despite investments.

• Building and technical trade cycle expected to recover moderately; car trade net sales and profit to improve.

• Key uncertainties: consumer confidence, investment appetite, and geopolitical risks.