Röko (RÖKO) Q4 2025 earnings summary

Executive summary

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

• Adjusted EBITA increased 9% to SEK 1,339M, with margin improving by one percentage point to 21%.

• 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, adding SEK 465M in annual sales.

• Class B shares were listed 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 a margin of 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% for the year.

• Net debt/EBITDA improved to 2.0x, reflecting strong cash generation.

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

Outlook and guidance

• The outlook remains optimistic, with a strong pipeline for future acquisitions and a target to double EBITDA over five years, implying a 15% CAGR.

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

• Negative FX headwinds are expected to persist if current rates continue.