Careium (CARE) Q4 2025 earnings summary

Executive summary

• Q4 net sales increased 0.9% to SEK 230.9m, with 6.3% growth adjusted for currency and 13.1% with further lease adjustments.

• Product sales grew to SEK 67.1m, while service sales declined to SEK 163.8m due to fewer financial lease classifications in Sweden.

• EBIT dropped to SEK 8.3m in Q4, impacted by higher headcount, operational initiatives, and asset phase-outs.

• Free cash flow improved to SEK 30.4m in Q4 and SEK 41.2m for the year, with cash position strengthened to SEK 54.9m.

• New permanent CEO, Tove Christiansson, to join in Q2 2026.

Financial highlights

• Gross margin for Q4 was 43.7%, slightly down from 44.4% the previous year; full-year gross margin improved to 43.9% from 42.9%.

• EBITDA for Q4 was SEK 27.0m (down 38.4% YoY), and for the year SEK 118.8m (down from 150.5m); EBITDA margin 11.7% in Q4 and 13.9% for the year.

• EBIT margin decreased to 3.6% in Q4 (11.6% prior year) and 5.8% for the year (9.7% prior year).

• Profit for the period was SEK 13.2m in Q4 (down 41.2% YoY) and SEK 35.8m for the year (down from 61.6m); EPS SEK 0.49 in Q4 and SEK 1.33 for the year.

• Equity ratio at year-end was 62.6% (64.6% prior year).

Outlook and guidance

• Several initiatives underway to unlock market potential, focusing on technology, structural capital, and market offerings.

• Integration and efficiency initiatives are expected to continue impacting margins through H1 2026, with anticipated long-term value creation.

• Impact of financial lease accounting in Sweden will be significantly reduced from Q1 2026, expected to benefit sales and margins.

• Anticipated benefits from the planned closure of analogue telecom infrastructure in the UK.

• Increased focus on the care platform as a strategic priority.