Orthex (ORTHEX) Q4 2025 earnings summary

Executive summary

• Net sales for 2025 declined by 2.8% to EUR 87.2 million, with Q4 sales down 6.6% to EUR 22.3 million, mainly due to weak consumer sentiment and cautious retail behavior, especially in the Nordics.

• Profitability improved in Q4, with adjusted EBITA stable at EUR 3.0 million and margin rising to 13.6%; full-year adjusted EBITA was EUR 9.8 million, margin at 11.3%, supported by cost control and lower raw material prices.

• Cash flows from operating activities increased to EUR 12.3 million, and leverage improved to 1.1x net debt/adjusted EBITDA.

• Strategic focus remains on strengthening Nordic leadership, accelerating European growth, expanding online, and pursuing M&A opportunities.

• Board proposes a dividend of EUR 0.23 per share, up from EUR 0.22, to be paid in two instalments, representing about 60% payout ratio.

Financial highlights

• Full-year net sales: EUR 87.2 million (down 2.8%); Q4 net sales: EUR 22.3 million (down 6.6%).

• Adjusted EBITA: EUR 9.8 million (down from EUR 10.2 million); margin: 11.3% (full year), 13.6% (Q4).

• Gross margin increased to 28.7% for the year.

• Net cash flows from operating activities: EUR 12.3 million (up from EUR 11.8 million).

• Earnings per share: EUR 0.38 (up from EUR 0.34), profit for the period: EUR 6.8 million (up 10.9%).

Outlook and guidance

• Management expresses cautious optimism for 2026, citing improved processes, organization, and readiness for growth.

• No short-term outlook published; long-term targets include >5% annual organic net sales growth, >10% outside Nordics, adjusted EBITA margin >18%, and net debt/adjusted EBITDA <2.5x.

• Ongoing monitoring of geopolitical risks, raw material price volatility, and consumer uncertainty.