Lagercrantz Group (LAGR) Q4 25/26 earnings summary

Executive summary

• Net revenue for FY 2025/26 rose 13% to SEK 10.6 billion, driven by acquisitions and organic growth, with strong Q4 performance in electrification, infrastructure, security, and defense sectors.

• EBITA increased 17% to SEK 1.9 billion, margin at 18.1%, and profit after tax grew 18% to SEK 1.2 billion; EPS after dilution rose to SEK 5.81.

• Eight acquisitions completed during the year, with four more after year-end, adding up to SEK 1.4 billion in annual revenue and strengthening niche positions.

• Strategic focus on increasing proprietary product share, now at 80% of sales, with a target of 85% in coming years.

• Board proposes a 14% dividend increase to SEK 2.50 per share, reflecting strong cash flow and profitability.

Financial highlights

• Q4 net revenue up 13% to SEK 2.8 billion; EBITA up 20% to SEK 536 million, margin at 19.0%.

• Full-year net revenue up 13% to SEK 10.6 billion; EBITA up 17% to SEK 1.9 billion, margin at 18.1%.

• Cash flow from operations up 14% to SEK 1.5 billion for the year.

• Earnings per share rose 18% to SEK 5.81; return on equity at 29%; equity ratio at 35%.

• Dividend proposed to increase by 14% to SEK 2.50 per share.

Outlook and guidance

• Cautiously optimistic outlook, expecting continued stable performance despite market uncertainties and geopolitical risks.

• Financial targets: 15% annual profit growth, EBITA margin target of 20% within 2–3 years, and ROE >25%.

• Targeting one-third organic and two-thirds M&A-driven growth; focus on 8–12 acquisitions per year.

• Seasonality expected to impact Q1 and Q2 due to recent winter-related acquisitions.

• Management aims to double profit after net financial items to SEK 2 billion in 5 years.