MEKO (MEKO) Q4 2025 earnings summary

Executive summary

• 2025 was marked by significant investments in warehouse automation, logistics upgrades, and new growth initiatives, including exclusive brands and expanded e-commerce, amid a challenging market with intensified competition and consumer restraint.

• Four major central warehouses were upgraded or automated in Finland, Norway, Denmark, and Poland, with automation completed in several locations.

• The company reduced its workforce by about 500 FTEs through cost-saving programs and automation.

• A new group management team was established to accelerate execution and operational improvements.

• Strategic focus for 2026 is on increasing growth and profitability, with fewer large projects ahead.

Financial highlights

• Net sales for 2025 were SEK 18,014M, flat or marginally down year-over-year, with Q4 net sales at SEK 4,512M, down 3% year-over-year.

• Adjusted EBIT margin for Q4 ranged from 2.2% to 3.6%, with full-year adjusted EBIT margin at 4.3% (down from 5.9%).

• Earnings per share for Q4 was -0.19 SEK, and for the full year SEK 0.64 (down from 7.74).

• Cash flow from operating activities for 2025 was SEK 1,013M, with Q4 at SEK 209M.

• Leverage increased to 4.0x net debt/EBITDA, above the target range, mainly due to lower EBITDA and one-off costs.

Outlook and guidance

• Focus for 2026 is on improving profitability, reducing leverage, and driving growth through e-commerce and exclusive brands.

• Maintenance CapEx is expected for 2026, returning to pre-2025 levels after heavy investment.

• No dividend will be proposed for 2025 to prioritize deleveraging.