Teqnion (TEQ) Q4 2025 earnings summary

Executive summary

• 2025 was marked by major organizational transformation, doubling subsidiaries to around 40 and moving to a scalable platform.

• Net sales for Q4 2025 increased by 15% year-over-year, primarily driven by acquisitions, while organic sales declined by 7%.

• EBITA for Q4 rose 92% year-over-year, supported by reevaluated earnouts; organic EBITA increased 60%.

• Leadership acknowledged a weak start to the year, grading performance as D-minus, with some improvement in the latter half but overall unsatisfactory results.

• Active decisions were made to remove unprofitable businesses, impacting top-line revenue but improving bottom-line earnings.

Financial highlights

• Organic growth declined due to both market conditions and deliberate removal of poor-performing business lines.

• Q4 net sales: 463.6 MSEK (up from 403.7 MSEK); full-year: 1,800.0 MSEK (up from 1,567.0 MSEK).

• Q4 EBITA: 48.6 MSEK (up from 25.3 MSEK); full-year EBITA: 203.1 MSEK (up from 149.7 MSEK).

• Free cash flow surged 95% in Q4 and 123% for the year; EPS increased 3% year-over-year.

• Backlog increased 50% year-on-year in 2025.

Outlook and guidance

• Leadership expects to continue focusing on profitable growth, with a target to double EPS every five years (15% CAGR), aiming for a mix of single-digit organic growth and at least 10% growth from acquisitions annually.

• The new organizational structure is expected to free up management capacity for more acquisitions.

• No dividend proposed for 2025 to prioritize reinvestment for higher returns.