Nilörngruppen (NIL) Q4 2025 earnings summary

Executive summary

• Order income rose 5% in Q4, but was flat after adjusting for a large packaging order and currency effects; full-year order intake increased 1% to MSEK 946.

• Sales declined 6% year-over-year to SEK 219 million, but adjusted for currency effects, sales reached SEK 246 million and surpassed SEK 1 billion for the year.

• Operating profit for Q4 was SEK 8.1 million (down from SEK 19.5 million), and full-year operating profit was MSEK 73.4 (down from 82.9), impacted by non-recurring personnel and sustainability audit costs.

• Strategic investments included new sales hires in the US, a new subsidiary in the Netherlands, and ongoing digitalization and capacity expansion.

Financial highlights

• Q4 operating margin was 3.7% (8.4% last year), affected by non-recurring costs and currency impacts; full-year margin was 7.8% (8.8%).

• Tax rate in Q4 was 29%, with an accumulated annual rate of 25%, influenced by dividend taxes from Bangladesh.

• Proposed dividend is SEK 1.50 per share, maintaining a strong balance sheet.

• SEK 38 million decrease in equity due to currency translation effects.

• Earnings per share for the year were SEK 4.43 (5.17).

Outlook and guidance

• Outdoor industry segment expected to remain strong; luxury segment remains weak due to client overstock, with improvement anticipated mid-2026.

• Focus for the next five years on strengthening RFID, heat transfer, packaging, and digital solutions.

• Continued investments in production capacity and geographical expansion, especially in Bangladesh, Portugal, Vietnam, and Sri Lanka.

• Continued investments in digitalization, capacity, and organization are expected to support long-term growth.

• The Board proposes an unchanged dividend of SEK 1.50 per share.