Pierce Group (PIERCE) Q4 2025 earnings summary

Executive summary

• Net revenue for 2025 increased by 12% to SEK 1,816 million, with 14% growth in local currencies, reflecting market share gains despite challenging European market conditions and geopolitical uncertainty.

• Adjusted EBIT improved 81% year-over-year to SEK 45 million, with transformation-related costs of SEK 29 million expensed during the year.

• Achieved SEK 1.8 billion in sales with a 5% EBITDA margin, serving over 1 million customers across 20 European countries.

• The company completed key IT system upgrades and continued its Pierce 2.0 efficiency program, reducing white-collar FTEs by 38% while growing the business by 15%.

• Cash position at year-end was SEK 235 million, with balanced inventory and a renewed credit facility agreement post-period.

Financial highlights

• Net revenue: SEK 1,816 million (up 12% year-over-year); Q4 revenue SEK 464 million (up 3%).

• Adjusted EBIT: SEK 45 million (2.5% margin), up from SEK 25 million (1.5%) in 2024.

• Gross margin increased to 43.5% in Q4, mainly due to reversal of obsolescence reserve and improved purchasing terms.

• Overhead costs declined to SEK 75 million, even with SEK 7 million in transformation expenses.

• Cash flow for the year: SEK -50 million (2024: SEK 68 million); Q4 cash flow SEK 79 million.

Outlook and guidance

• Profitability expected to improve further in 2026 as transformation costs decline and depreciation decreases.

• Full deployment of new IT systems in H1 2026 anticipated to improve EBIT by SEK 30–40 million annually.

• Growth rate expected to moderate as comparables strengthen, but expansion into new markets and verticals is planned.

• Medium to long-term targets: outgrow the European online motorcycle gear market, achieve 5–8% adjusted EBIT margin, and maintain net debt/EBITDA below 2.0x.

• Transformation program (Pierce 2.0) to complete by H1 2026, expected to structurally improve profitability.