W5 Solutions (W5) Q4 2025 earnings summary

Executive summary

• Achieved record high net sales and profitability for Q4 and full year 2025, driven by strong demand, successful contract wins, and significant margin expansion.

• Net sales for 2025 increased 27% year-over-year to SEK 492 million, with EBIT turning positive to SEK 38 million.

• Order intake rose 46% to SEK 730 million, with an order backlog up 83% to SEK 566 million, supporting future growth.

• Growth strategy targets at least 20% organic growth annually, SEK 1 billion in net sales, and 10% profitability by 2027.

• Organization is scaling up to meet demand, planning headcount growth and production optimization without major facility expansion in 2026.

Financial highlights

• Q4 2025 net sales: SEK 215.0 million (up 68% year-over-year); EBIT: SEK 47.6 million; EBIT margin: 22.1%.

• Full year 2025 net sales: SEK 492 million (up from SEK 387.7 million); EBIT: SEK 38 million (up from SEK -6.3 million); EBIT margin: nearly 8%.

• Net profit for 2025: SEK 14.7 million; EPS after dilution: SEK 0.90.

• Book-to-bill ratio for 2025 was 1.5, with order intake of SEK 730 million and year-end backlog of SEK 566 million.

• Cash flow from operating activities for the year: SEK -7.4 million, impacted by increased working capital.

Outlook and guidance

• Confident in achieving at least 20% organic growth in 2026 without expanding production facilities, though headcount will increase.

• Margin expansion expected as all segments contribute, with a target to maintain or improve the 8% EBIT margin despite growth.

• Financial targets for 2027 reaffirmed: SEK 1 billion in net sales and 10% EBIT margin.

• M&A remains a priority, with active pursuit of suitable defense-focused targets in the Nordics.

• Order backlog and strong demand provide visibility and confidence for continued profitable growth in 2026.