NOTE (NOTE) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 profitability and operating margin, reaching the upper end of long-term objectives, despite market softness and defense sector delays.

• Q4 sales exceeded SEK 1 billion, with full-year sales at SEK 3.8 billion, reflecting stable performance.

• Demonstrated adaptability amid market challenges, with sales just meeting guidance due to temporary Defence segment delays.

• Order backlog reached its highest ever, especially in Defence, supporting a positive outlook for 2026 and beyond.

• Major expansion of the Torsby plant in Sweden doubled production capacity, supporting future growth.

Financial highlights

• Q4 net sales: SEK 1,001 million; full-year net sales: SEK 3,814 million.

• Q4 operating profit: SEK 113 million; adjusted operating profit: SEK 114 million.

• Underlying operating profit margin was 11.4% for Q4, the highest ever, and 10.1% for the year.

• Operating cash flow was the weakest in nine quarters due to delayed customer payments, but these have since been resolved.

• Net debt increased to SEK 403 million after acquisitions, with equity ratio at nearly 50%.

Outlook and guidance

• Defence segment expected to deliver strong growth, with a +30% year-over-year target until 2030, supported by a robust order backlog.

• Defense sector challenges expected to persist into early 2026, with gradual improvement anticipated later in the year.

• No dividend proposed for 2025 to maintain financial flexibility amid sector transformation.

• Expects at least one acquisition in 2026, supported by a strong balance sheet.

• CapEx investments for 2026 projected at SEK 100–125 million for equipment, plus SEK 20 million for buildings.