BTS Group (BTS) investor relations material

Executive summary

• Q4 2025 ended a three-quarter streak of declining profits, marking a turning point with expectations for improved performance and renewed earnings growth in 2026.

• 2025 saw disappointing results, with net sales down to MSEK 2,703 from MSEK 2,802 and EBITA dropping 25% year-over-year to MSEK 274.

• Two out of three business units delivered growth in 2025; Europe and Other Markets are expected to continue this trend in 2026.

• North America underperformed but is showing signs of recovery, with anticipated return to organic revenue growth and improved EBITDA in Q1 2026.

• AI innovation and restructuring are expected to drive efficiency, new client services, and growth in 2026.

Financial highlights

• 2025 saw no overall growth and a 25% decline in EBITDA year-over-year, with net sales at MSEK 2,703 and EBITA at MSEK 274.

• Q4 2025 net sales were MSEK 710, down from MSEK 796; EBITA fell 37% to MSEK 86.

• Bookings in North America in Q4 were up 25-27% year-over-year, indicating increased demand.

• License revenue as a percentage of sales dropped to 7% from a historical 10%, mainly due to a non-renewed deal in North America.

• Full-year EBITA margin dropped to 10.2% from 13.0%; profit after tax was MSEK 133, down from MSEK 387 (excluding one-time earn-out reversal, down 31%).

Outlook and guidance

• Expectation of double-digit revenue growth in Europe and Other Markets for 2026.

• North America projected to achieve moderate organic growth and significantly improved profit in Q1 2026.

• EBITDA in North America expected to be up at least 15% year-over-year in Q1 2026.

• Full-year 2026 EBITDA and EBITA expected to be significantly better than 2025, driven by sales growth, cost reductions, and AI-driven services.

• Dividend proposed at SEK 4.40 per share, to be paid in two installments.