Railcare Group (RAIL) Q4 2025 earnings summary

Executive summary

• Net sales for Q4 2025 reached SEK 170.1 million, up 8.4% year-over-year, with full-year sales totaling SEK 667.6 million, a 5.1% increase.

• Operating profit (EBIT) for Q4 2025 was SEK 14.9 million, up 8.4% year-over-year; full-year EBIT reached SEK 67.6 million.

• The Transport segment was the main growth driver, while Contracting and Technology segments saw lower sales.

• The Board proposes a dividend of SEK 0.70 per share for 2025.

• Decision made to wind down UK operations due to declining volumes and insufficient government funding.

Financial highlights

• Q4 operating margin remained steady at 8.8%; full-year margin slightly decreased to 10.1% from 10.4%.

• Profit for Q4 was SEK 6.9 million (up from 3.1); full-year profit was SEK 39.8 million (up from 30.4).

• Earnings per share for Q4 were SEK 0.29 (0.13); full-year EPS was SEK 1.65 (1.26).

• Cash flow from operating activities for the year increased to SEK 166.9 million (151.7).

• Equity/assets ratio at year-end was 26.9% (27.4%).

Outlook and guidance

• Financial targets for 2027: net sales of SEK 1,000 million and operating margin of 13%.

• Continued focus on expanding Transport operations and evaluating growth at the Långsele site.

• Operational activities in the United Kingdom will be wound down.

• Continued focus on sales through new construction, life extension projects, and maintenance.

• Growth in transport operations is expected, with new contracts needed to meet 2027 targets.