Orkla (ORK) Q4 2025 earnings summary

Executive summary

• Organic growth for Q4 2025 was 4.5% year-over-year, with underlying adjusted EBIT for consolidated portfolio companies up 17% and adjusted EPS of NOK 1.74, reflecting strong operational performance and margin improvement.

• Jotun delivered 28% underlying operating profit growth, and Orkla Snacks achieved 16% EBIT adjusted growth in Q4, with all major portfolio companies except Foods contributing positively.

• The Board proposes a total dividend of NOK 6 per share for 2025, including an extra NOK 2.2, and a NOK 4 billion share buyback program is ongoing.

• Strategic progress included the IPO of Orkla India, sale of Hydro Power assets, and further portfolio simplification.

• Full-year 2025 saw organic growth of 3.5%, underlying EBIT (adj.) growth of 7%, and cash conversion of 101%.

Financial highlights

• Q4 2025 operating revenues were NOK 18,775 million, up 2% year-over-year; adjusted EBIT was NOK 1,977 million, up 12%.

• Adjusted EPS reached NOK 1.74, up 24% year-over-year; profit before tax rose 24% to NOK 2,140 million.

• Cash flow from operations was NOK 7.8 billion for 2025, with cash flow before capital allocation at NOK 6.9 billion.

• Net debt stood at NOK 14.2 billion, equal to 1.4x EBITDA (0.9x excluding Orkla Food Ingredients).

• Profit from associates and JVs was NOK 505 million, up 36% year-over-year, mainly from Jotun.

Outlook and guidance

• Jotun expects sales growth to outpace the market in 2026, but margin pressure from competition and negative currency effects is anticipated.

• Portfolio companies are targeting 8–10% CAGR in underlying adjusted EBIT and 1.5–2.0 pp margin improvement through 2026.

• Orkla Snacks anticipates favorable input cost development in 2026, while Orkla Health expects continued negative impact from cod liver oil price trends.

• Inflation in key input costs (meat, marine, berries, cocoa) is expected to persist into 2026.

• Portfolio companies are developing strategy plans for 2027–2030, focusing on volume growth and cost efficiency.