Arla Plast (ARPL) Q4 2025 earnings summary

Executive summary

• Net sales for Q4 2025 decreased by 10% to 327.1 MSEK, mainly due to lower raw material prices and currency effects; full-year net sales increased by 3% to 1,433.0 MSEK, driven by acquisitions despite organic decline.

• Volumes remained stable and market share was unchanged, despite negative currency effects and lower raw material prices.

• Gross margins improved in Q4 and for the full year, supported by a higher share of high-optical products and operational improvements.

• Acquisition of Aikolon Oy completed in October 2025, fully financed with own funds, strengthening high-optical product capabilities; reconstruction process concluded.

• Board proposes a dividend of 1.60 SEK per share, representing 38% of net profit.

Financial highlights

• Q4 2025 net sales: 327.1 MSEK (-10% YoY); FY 2025 net sales: 1,433.0 MSEK (+3% YoY).

• Q4 operating margin: 6.9% (up from 6.3%); FY 2025 operating margin: 8.0% (down from 8.3%).

• Q4 net income: 19.9 MSEK (-29% YoY); FY: 88.3 MSEK (-10% YoY); EPS for Q4: 0.95 SEK, FY: 4.21 SEK.

• Cash flow from operations: Q4 62.8 MSEK (-42% YoY); FY 183.0 MSEK (+10% YoY).

• Net cash position at year-end: 41.7 MSEK; equity/assets ratio: 69.1%.

Outlook and guidance

• Demand in Q1 2026 expected to remain at similar levels as previous quarter; continued strong demand for high-optical products anticipated.

• Market conditions remain hesitant into 2026, with weak demand in construction and automotive sectors; raw material price movements are difficult to predict.

• Investments planned in new production hall (Sweden), equipment modernization (Czechia), and operational improvements (Spain, Finland).

• New segment structure for 2026: North Europe, East Europe, West and South Europe.