Latour (LATO) Q4 2025 earnings summary

Executive summary

• Delivered record quarterly results in Q4 2025 with improved profitability and strong performance across operations, despite a challenging business climate and mixed market conditions.

• Achieved organic order intake and net sales growth in both Q4 and the full year, with variation across industries and regions.

• Acquisition activity remained high, with seven acquisitions completed in 2025, adding SEK 1.8 billion in annual revenue, and further deals in early 2026.

• Board proposes a 10.9% higher dividend of SEK 5.10 per share, continuing a trend of annual increases.

• Entering 2026 with a strong order backlog and a financially robust position.

Financial highlights

• Net asset value increased by 2.4% (adjusted for dividends) to SEK 216 per share; share price at year-end was SEK 225, a 4% premium to NAV.

• Consolidated net sales rose 9% year-over-year to SEK 28,145m; adjusted operating profit up 4% to SEK 3,935m.

• Consolidated net debt decreased from SEK 16.8 billion to SEK 15 billion, now about 10% of investment market value.

• Positive cash flow from operations exceeded SEK 3.7 billion for the year.

• Profit after tax was SEK 4,947m (down from SEK 6,200m), with EPS at SEK 7.69 (9.65).

Outlook and guidance

• Organization is well-prepared for 2026, with a strong order backlog and continued investment in both existing and new holdings.

• Focus remains on long-term sustainable value creation and growth, leveraging global megatrends such as energy efficiency, accessibility, and automation.

• Management remains cautious due to geopolitical uncertainty and mixed market conditions, especially in construction.

• Financial targets set at >10% annual growth, >15% operating margin, and >15% return on operating capital; actuals for 2025 were 9%, 14%, and 14% respectively.