Lifco (LIFCO) Q4 2025 earnings summary

Executive summary

• Net sales grew 8.1% year-over-year to SEK 28,251 million in 2025, with 4.2% organic growth and 7.4% from acquisitions, offset by negative currency effects.

• EBITA increased 6.8% to SEK 6,318 million, with a margin of 22.4%; net profit rose 9.6% to SEK 3,669 million and EPS up 10% to SEK 8.00.

• Operating cash flow rose 10.7% to SEK 5,124 million, with free cash flow per share growing at a 22% CAGR since 2014.

• Board proposed a dividend of SEK 2.70 per share, up from SEK 2.40, representing 33.8% of net profit.

• 16 acquisitions consolidated in 2025, adding SEK 2.2 billion in annual net sales; focus on high-margin, niche companies.

Financial highlights

• Organic growth contributed 4.2% to annual net sales; acquisition growth at 7.4%.

• EBITA margin was 22.4% for the year and 22.8% in Q4.

• Return on capital employed was 20.5%; excluding goodwill, 132%.

• Net debt/EBITDA at 1.7x; interest-bearing net debt/EBITDA at 1.1x.

• EBITDA CAGR of 18% and EPS CAGR of 16% from 2015 to 2025.

Outlook and guidance

• Financial position supports further acquisitions, with net debt well below target ceiling.

• Focus remains on profit growth, asset-light operations, and disciplined capital allocation.

• Targeting organic EBITA growth above GDP in relevant geographies, with acquisitions to supplement growth.

• Contract Manufacturing and Systems Solutions show stable trends entering 2026, but management remains cautious due to past volatility.

• Visibility remains limited, especially in Contract Manufacturing, with stability expected in the near term.