Röko (RÖKO) Q4 2025 earnings summary

Executive summary

• Net sales grew 4% year-over-year to SEK 6,452M in 2025, driven by acquisitions and organic growth, but offset by negative currency effects and political uncertainty.

• Adjusted EBITA increased 9% to SEK 1,339M, with margin improving to 21%, supported by both organic and acquired growth.

• Net profit rose 8% to SEK 755M, and earnings per share increased to SEK 51.52.

• Three acquisitions were completed, including the first in Italy, contributing SEK 465M in annual sales.

• IPO of Class B shares on Nasdaq Stockholm in March 2025, with SEK 41M in related costs impacting profits.

Financial highlights

• Full-year adjusted EBITDA grew 9% to SEK 1,512M, with margin at 23%.

• Operating cash flow after capex was SEK 1,006M, with a cash conversion rate of 75%.

• Return on capital employed improved to 14.8%, marking the fourth consecutive year of increase.

• Interest-bearing net debt at SEK 438M (2.0x EBITDA); financial net debt at SEK 3,040M.

• Earnings per share rose to SEK 51.52 from SEK 47.33 year-over-year.

Outlook and guidance

• Management targets doubling EBITDA over five years, implying a 15% CAGR, with a mix of organic and acquired growth.

• Continued focus on disciplined acquisitions and organic growth, with a track record of acquiring companies at below 8x EBITA.

• Strong financial position supports further acquisitions in line with investment criteria.

• Negative currency effects are expected to persist if current rates hold through 2026.