EQL Pharma (EQL) Q4 25/26 earnings summary

Executive summary

• Q4 revenue grew 6% year-over-year to SEK 120.2 million, setting a new quarterly sales record, but gross margin dropped sharply from 41% to 28% due to SEK 13 million in one-off items and higher logistics costs.

• Operating profit (EBIT) for Q4 fell to SEK 5.1 million from SEK 23.0 million, with a margin of 4% versus 20% last year, mainly due to non-recurring costs.

• Operational challenges, including supply chain disruptions and delayed product launches, weighed on performance.

• Management remains committed to the five-year growth plan, targeting recovery and improved profitability, with an average annual growth target of 30%.

• Cash and cash equivalents at period end were SEK 86.8 million, with an unused working capital facility of SEK 26.5 million.

Financial highlights

• Q4 revenue increased to SEK 120.2 million from SEK 113.3 million year-over-year.

• Full-year net sales reached SEK 432.7 million, up from SEK 373.5 million.

• Q4 gross margin fell to 28% from 41% due to SEK 13 million in one-offs, including a SEK 6 million write-down on abiraterone and SEK 2 million in increased logistics costs.

• EBITA margin was very low, reflecting the impact of one-offs and higher OpEx.

• CapEx for the quarter was SEK 16.7 million.

Outlook and guidance

• Sales growth for the coming year is guided at around 15%, below the long-term 30% target, mainly due to launch delays and ongoing supply issues.

• Management expects leverage to remain above the internal target for most of the year, improving toward year-end.

• OpEx growth will be kept to single digits for the foreseeable future.

• Margin downside of SEK 10–15 million possible if geopolitical disruptions persist.

• Five-year plan targets an EBITDA margin stabilizing at 25%.