Vaisala (VAIAS) Q4 2025 earnings summary

Executive summary

• Achieved strong performance in 2025 despite significant headwinds from a sharp decline in the renewable energy market, currency volatility, and new import duties between the U.S. and Europe.

• Orders received improved in Q4 2025, rising 5% to EUR 152.0 million (10% in constant currencies), though full-year orders declined 9% due to weak renewable energy demand and normalization in meteorology and aviation.

• Subscription sales, particularly in Xweather, grew 50% year-over-year, supported by acquisitions and organic growth.

• Technology leadership highlighted by Xweather's enterprise-scale AI-meteorological data integration and recognition for sustainable growth.

• Board proposes a dividend of EUR 0.86 per share for the AGM.

Financial highlights

• Net sales for 2025 increased 6% to EUR 596.9 million, exceeding the long-term target of 7% in constant currencies; Q4 net sales were EUR 162.3 million, down 3% year-over-year.

• Gross margin for 2025 was 55.2% (down from 56.3%); EBITA margin 15.8% (EUR 94.2 million), including EUR 4.9 million in restructuring costs.

• Earnings per share for 2025 were EUR 1.65, down from EUR 1.76 in 2024.

• Cash flow from operating activities improved to EUR 90.4 million, with strong cash conversion (1.1x); cash and cash equivalents at year-end were EUR 92.8 million.

• Order book at year-end was EUR 185.8 million, 14% below previous year.

Outlook and guidance

• 2026 net sales expected between EUR 600–630 million; EBITDA/EBITA guidance set at EUR 95–110 million.

• Growth anticipated in industrial, life science, power markets, and Xweather subscriptions; meteorology and aviation expected to remain stable, renewable energy to stabilize at a lower base.

• Market uncertainties remain high, with rapid changes and persistent risks expected in 2026.