New Wave Group (NEWA) Q4 2025 earnings summary

Executive summary

• Revenue surpassed SEK 10 billion for the first time, driven by organic growth and the acquisition of Cotton Classics, despite volatile market conditions and significant currency headwinds.

• Growth was reported in all business segments and both promo and retail channels, with significant contributions from acquisitions and organic expansion.

• Profitability was maintained, though operating profit and net income declined year-over-year due to higher costs, non-recurring legal expenses, and high investment levels.

• CEO and management remain optimistic for future growth and margin improvement as investments mature, despite market volatility.

Financial highlights

• Full-year net sales reached SEK 10,019 million, up 5.1% year-over-year, with 9.5% organic growth in local currencies.

• Q4 net sales were SEK 3,145 million, up 11.2% year-over-year despite a -6.5% currency impact; local currency growth was 17.7%.

• Full-year operating profit was SEK 1,141 million (down from SEK 1,262 million), with a margin of 11.4%; Q4 operating profit was SEK 435 million (13.8% margin).

• Full-year net result was SEK 783 million, with EPS of SEK 5.90 (down from 6.63); Q4 net income was SEK 306 million.

• Gross profit margin for the year was 49.0% (49.4%); Q4 margin was 48.5% (50.0%).

• Cash flow from operating activities for the year was SEK 1,108 million; Q4 cash flow was SEK 534 million.

Outlook and guidance

• Management remains optimistic, targeting 10–20% annual growth over an economic cycle, with 5–10% organic growth and a 20% operating margin.

• Continued investments in IT, ERP, automation, and new facilities are expected through 2026, with cost levels remaining elevated.

• Dividend proposal of SEK 3.00 per share, corresponding to 51% of net profit, to be paid in two installments.

• Inventory levels increased to support anticipated growth in 2026.