Hagar (HAGA) Q4 2025 earnings summary

Executive summary

• Strong operational year with core business expanded to the Faroe Islands through the acquisition of SMS, which contributed significantly to Q4 results and supports future growth and profitability.

• Revenue and profitability exceeded expectations, driven by improved performance in key subsidiaries, integration of SMS, and digital and sustainability initiatives.

• Strategic focus on efficiency, cost control, and expansion into new markets supported growth.

• All main business units performed well, with increased efficiency and improved service offerings.

• Notable milestones include the integration of SMS, digital initiatives, and sustainability progress.

Financial highlights

• Revenue for 12M 2024/25 was ISK 180.3bn, up 4.1% year-over-year; Q4 revenue was ISK 46.0bn, up 7.6%.

• EBITDA for the year reached ISK 14.7bn, up 12.8%; Q4 EBITDA was ISK 3.9bn, up 35.8%.

• Net income for the year was ISK 7.0bn, up 39.4%; Q4 net income was ISK 3.1bn, up 157.4%.

• EPS for the year was ISK 6.47, up 41% (21% excluding one-time SMS effects).

• Total assets at year-end were ISK 105.0bn, up 34.4% from last year.

Outlook and guidance

• Operations are strong with a positive outlook; EBITDA guidance for 2025/26 is ISK 16.0–16.5bn.

• Assumptions include 4% annual price inflation and 5% wage increases from labor agreements.

• Gradual but positive economic trends, with inflation and interest rates declining and increased predictability from wage agreements.

• Investment (CAPEX) expected to be in line with previous years, except for potential impact from the Álfabakki 2 project.

• Opportunities for further integration and synergies with SMS in the Faroe Islands.