Lassila & Tikanoja (LASTIK) Q4 2025 earnings summary

Executive summary

• Net sales grew 0.7% to EUR 426.6 million in 2025, with adjusted EBITA at EUR 40.6 million and adjusted EBITDA at EUR 84.3 million.

• Successful completion of a partial demerger created a focused circular economy company, now listed on Nasdaq Helsinki.

• Three acquisitions completed, expanding in plastics recycling, pallet, sewer maintenance, and entry into Sweden.

• Significant investments in IT infrastructure, including rollout of a new cloud-based ERP system.

• Board proposes a dividend of EUR 0.42 per share, to be paid in two instalments in 2026.

Financial highlights

• Operating cash flow after investments per share was EUR 1.08, with free cash flow totaling EUR 41.4 million, up from EUR 34.3 million in 2024.

• Net working capital at year-end was minus EUR 29.8 million, slightly improved from minus EUR 28 million.

• Capital expenditure for 2025 was EUR 41.7 million, with EUR 29.2 million organic CapEx and EUR 11.1 million for acquisitions.

• Leverage ratio at 1.78, equity ratio 35%, gearing ratio 86.9%.

• Net debt at year-end was EUR 150.2 million; cash and equivalents at EUR 37.4 million.

Outlook and guidance

• 2026 net sales estimated at EUR 420–450 million; adjusted EBITA guidance EUR 38–44 million.

• Market recovery expected in the second half of 2026, with stronger improvement anticipated in 2027.

• Efficiency measures and ERP benefits to materialize more fully from 2027 onwards.

• Mid-term targets: average annual net sales growth over 6%, adjusted EBITA margin of 11%, net debt/EBITDA 1.5x–2.5x, and dividend payout ratio of at least 50%.