NOTE (NOTE) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 profitability and operating margin of 11.4%, reaching the upper end of long-term objectives and providing a solid foundation for future growth and market consolidation.

• Q4 sales exceeded SEK 1 billion, with full-year sales at SEK 3.8 billion, reflecting stable performance despite market and Defence sector delays.

• Order backlog increased 11% year-over-year, especially in Defence, supporting a positive outlook for 2026 and beyond.

• Acquisition of UK-based Kasdon Group (formerly Custom Electronics) strengthened Defence segment and UK market presence, consolidated from October 1.

• Major capacity expansions in Torsby, Lund, and Finland, with new, more efficient facilities coming online to support future growth.

Financial highlights

• Q4 net sales: SEK 1,001 million (down from SEK 1,025 million YoY); full-year net sales: SEK 3,814 million (down from SEK 3,901 million YoY).

• Q4 operating profit: SEK 113 million (up 16% YoY); full-year operating profit up 9%.

• Q4 profit after tax: SEK 86 million (up 18% YoY); full-year profit after tax: SEK 281 million (up 13% YoY).

• Q4 operating cash flow: SEK 58 million, down from SEK 140 million YoY; full-year: SEK 437 million.

• Net debt at year-end: SEK 403 million (up from zero in Q3 and SEK 87 million YoY); equity ratio nearly 50%.

Outlook and guidance

• Defence segment expected to deliver strong growth, with a +30% year-over-year target until 2030, supported by robust order backlog.

• Defence sector challenges expected to persist into early 2026, with gradual improvement anticipated later in the year.

• Anticipates a good year in 2026, with profitability at target levels and potential for further growth if sales increase.

• Expects at least one acquisition in 2026, supported by a strong balance sheet.

• CapEx investments for 2026 projected at SEK 100–125 million for equipment, plus SEK 20 million for buildings.

• No dividend proposed for 2025 to maintain financial flexibility amid sector transformation.