Latour (LATO) Q4 2025 earnings summary

Executive summary

• Record Q4 2025 results with improved profitability and strong performance in industrial operations, despite challenging market conditions and underperformance in the investment portfolio.

• Organic order intake and net sales growth achieved, with segment results varying by industry and region.

• High acquisition activity in 2025, with seven acquisitions completed and two divestments, adding SEK 1.8 billion in annual revenue.

• Board proposes a 10.9% higher dividend to SEK 5.10 per share, reflecting strong operational and portfolio performance.

Financial highlights

• Net asset value per share increased 2.4% to SEK 216, with the share price ending at SEK 225, a 4% premium.

• Consolidated net sales rose 9% year-over-year to SEK 28,145m; adjusted operating profit up 4% to SEK 3,935m.

• Profit after tax was SEK 4,947m (down from SEK 6,200m), with EPS at SEK 7.69 (9.65).

• Net debt at year-end was SEK 15 billion, about 10% of investment market value.

• Strong cash flow from operations, exceeding SEK 3.7 billion.

Outlook and guidance

• Entering 2026 with a strong order backlog and an organization prepared for both opportunities and challenges.

• Financial targets set at >10% annual growth, >15% operating margin, and >15% return on operating capital; actuals for 2025 were 9%, 14%, and 14% respectively.

• Management remains cautious due to geopolitical uncertainty and mixed market conditions, especially in construction.