Ratos (RATO) Q4 2025 earnings summary

Executive summary

• 2025 was a transformative year marked by strategic milestones, including the sale of Airteam, listing of Sentia, HL Display's acquisition of Deinzer, and divestment of Expin Group, streamlining the business focus.

• Major restructuring in Plantasjen led to the closure of one-third of stores and a SEK 1,049m goodwill impairment.

• Gradual improvement in Q4 net sales, especially in defense and energy sectors, with several large orders secured.

• Full-year adjusted EBITA reached SEK 1,931m, up 17%, with Q4 adjusted EBITA up 57% year-over-year.

• Cautiously optimistic outlook for 2026, supported by operational improvements and a strong order backlog.

Financial highlights

• Q4 organic growth for continuing operations was 3%; Q4 net sales were SEK 4,683m, up 3% organically, but full-year net sales declined by 1%.

• Q4 adjusted EBITA was SEK 346m (up 57%); full-year adjusted EBITA was SEK 1,931m (up 17%).

• Adjusted diluted EPS for 2025 rose 19% to SEK 2.80; Q4 EPS up 640% to SEK 0.37.

• Board proposes a dividend of SEK 1.40 per share, representing a 50% payout ratio.

• Underlying cash flow improved 67% year-over-year in Q4, with strong cash conversion.

Outlook and guidance

• Continued macroeconomic and geopolitical uncertainty expected to impact markets in 2026.

• Order backlog and major contracts provide confidence for 2026, with focus on profitable growth and operational improvements.

• Cost control and transformation remain priorities, especially for Plantasjen.