Alcadon Group (ALCA) Q4 2025 earnings summary

Executive summary

• Net sales for 2025 decreased by 4.5% year-over-year to SEK 1,434 million, with a 1.6% decrease in constant currency, as broadband (FttH) saturation in Nordics and UK led to volume drops, while data center investments surged.

• Strategic repositioning included discontinuing loss-making German operations, updating vision and targets, decentralizing management, and shifting focus from volume growth to margin improvement and cash flow.

• New leadership in most subsidiaries, including appointment of a new CFO effective March 2026, and refined incentive programs aligned with profitability and cash flow goals.

• Discontinuation of the German subsidiary led to non-cash write-downs of SEK 49 million and a total loss from discontinued operations of SEK 59 million for the year.

• Strong cash flow from operating activities at SEK 124 million, with reduced indebtedness and improved equity ratio to 53%.

Financial highlights

• Q4 2025 net sales down 2% year-over-year to 369 MSEK; gross margin up 1 percentage point to 27.4%.

• Adjusted EBITA for Q4 at 24 MSEK (6.4% margin); full-year EBITA at 95 MSEK (6.6% margin), down 17% year-over-year.

• Full-year turnover decreased to 1,430 MSEK from 1,600 MSEK in 2024; gross margin improved to 26.7%.

• Q4 profit negative at -36 MSEK, impacted by -52 MSEK from discontinued German operations, mostly non-cash write-downs.

• Earnings per share for 2025 at SEK -0.46, compared to SEK 1.54 in 2024.

Outlook and guidance

• Financial targets updated: aim for 10% EBITA margin, profit growth of at least 10% per year, and indebtedness ratio below 3.

• Focus for the next 6-12 months on empowering new management, optimizing inventory, and improving gross margins.

• Continued emphasis on cash flow generation, profitability before volume, and targeted acquisitions in digitalization.

• No dividend proposed for 2025 to prioritize investment opportunities.

• Ambition to acquire 10-12 MSEK annually in new platform acquisitions.