Mips (MIPS) Q4 2025 earnings summary

Executive summary

• Achieved 18% organic growth in Q4 and 21% for the full year, with strong performance across all categories and significant gains in Europe and the US despite challenging market conditions.

• Completed acquisition of Koroyd in December, expanding the product portfolio and market reach, expected to be accretive to EPS and EBIT.

• Underlying profitability impacted by legal, forex, and transaction costs, with EBIT down 11% to SEK 156m.

• Sustainability progress recognized with top industry ratings, 49% of 2030 emission reduction target achieved, and 34% recycled material usage in 2025 products.

• Proposed dividend of SEK 2.50 per share, representing 55% of net earnings.

Financial highlights

• Q4 net sales increased 2% to SEK 147m, with 18% organic growth after FX adjustment; gross margin stable at 72.9%.

• Q4 EBIT down 24% to SEK 47m, margin at 31.8% (39.8% excluding legal and transaction costs).

• Full-year net sales up 10% to SEK 533m, organic growth 21%, gross margin at 73.4%, EBIT down 11% to SEK 156m, margin at 29.2%.

• Operating cash flow strong at SEK 148m for the year.

• Cash and equivalents at SEK 214m; net debt/adjusted EBITDA at 0.5x; equity ratio at 43%.

Outlook and guidance

• Positive outlook for 2026 with continued growth expected in Europe and the US, and less impact from tariffs.

• Legal costs expected to remain at 2025 levels (~SEK 10m per quarter) due to ongoing disputes.

• Koroyd acquisition to drive further growth and product innovation, with synergies anticipated in both sales and R&D.

• Innovation pipeline and sustainability initiatives to support long-term strategy.

• Chinese market remains soft with hesitant consumer demand, not expected to recover in 2026.