Sdiptech (SDIP) Q4 2025 earnings summary

Executive summary

• Achieved SEK 4.5 billion in revenue and SEK 968 million in adjusted EBITDA for 2025, with a 21.5% margin, excluding divested companies.

• Strategic review led to a more focused core portfolio, with 8 out of 11 divestments signed and two new acquisitions in 2025, including STORR B.V. and Phase 3 Connectors.

• Strong organic sales growth in Q4, with 6% organic growth and 3% total sales growth year-over-year.

• Positive outlook for 2026, supported by a strong management team, ongoing focus on capital efficiency, and increased M&A activity.

• Implementation of four strategic pillars: portfolio management, proactive ownership, disciplined M&A, and cluster development.

Financial highlights

• Q4 adjusted EBITDA at SEK 255 million, with a margin of 22.4%; Q4 adjusted EBITA at SEK 284 million, margin 21.4%.

• Full-year adjusted EBITA up 1% to SEK 1,020 million; adjusted EBITDA up 3% to SEK 968 million.

• Free cash flow per share reached nearly SEK 17 for 2025, up from SEK 13 a year ago; Q4 free cash flow per share was SEK 7.33.

• Cash conversion exceptionally strong at 134% in Q4, driven by reduced working capital and operational improvements.

• Earnings per share (excluding goodwill write-downs) around SEK 12.

Outlook and guidance

• Positive outlook for 2026, expecting continued organic growth, improved performance in Supply Chain & Transportation, and increased M&A activity.

• Adjusted EBITDA/EBITA margin expected to remain between 21% and 21.5%.

• ROCE target of 15% anticipated to be reached within 1-2 years post-divestments.

• Management expects continued focus on core operations and disciplined capital allocation.

• Supply Chain & Transportation segment expected to recover in 2026, with early signs of improved order intake.