Kongsberg Automotive (KOA) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue was EUR 167.5 million, down 9.6% year-over-year but up 2.8% sequentially, reflecting market stabilization.

• EBIT improved to EUR 9.4 million (5.6% margin) from EUR 1.1 million (0.6% margin) in Q4 2024, driven by cost reductions and a one-time accrual reversal of EUR 4.9 million.

• Free cash flow reached EUR 11.5 million, up from EUR 4.2 million year-over-year, reflecting cost savings, working capital improvements, and financial discipline.

• Net income turned positive at EUR 2.8 million for Q4 2025, compared to a loss of EUR 13 million in Q4 2024.

• Leadership renewal and a new executive team are driving a turnaround program focused on operational excellence, cost management, and innovation.

Financial highlights

• Q4 revenues were EUR 167.5 million, down from EUR 185.2 million year-over-year, mainly due to weaker demand and negative currency effects.

• EBIT margin rose to 5.6% from 0.6% year-over-year, supported by cost savings and accrual reversals.

• Free cash flow improved to EUR 11.5 million in Q4 and EUR 6.7 million for FY 2025, compared to negative EUR 20.3 million in FY 2024.

• Net income for FY 2025 was EUR 0.2 million, a turnaround from previous losses.

• Equity ratio stable at 32% at year-end 2025.

Outlook and guidance

• Market outlook has improved for H2 2026, with expectations for continued positive margin trends and a reaffirmed long-term EBIT margin target of 6.5%.

• EBIT margin for 2026 expected to continue the positive trend from 2025, supported by ongoing cost savings and operational enhancements.

• Focus remains on cost efficiency, cash flow improvement, leadership development, and innovation.

• No revenue targets communicated due to market uncertainties, but upside potential exists if market conditions improve.