Seamless Distribution Systems (SDS) Q4 2025 earnings summary

Executive summary

• Revenue for Q4 2025 fell 39.1% year-over-year to 34.8 MSEK, with full-year revenue down 24.4% to 171.3 MSEK.

• EBITDA for Q4 was -29.3 MSEK (margin -84.0%), and for the year -25.0 MSEK (margin -14.6%), reflecting restructuring costs and lower sales.

• Net loss after tax was -42.3 MSEK for Q4 and -113.7 MSEK for the year; EPS was -1.97 SEK for Q4 and -5.64 SEK for the year.

• Major restructuring and cost-saving measures reduced the annual cost base by 66 MSEK, with full effect from January 2026.

• Recurring revenues now cover all operational costs and interest, positioning the company for profitable growth in 2026.

Financial highlights

• Q4 operating expenses increased 25.8% year-over-year due to restructuring, with temporary transition costs.

• Cash flow for Q4 was -9.5 MSEK; year-end cash position was 2.1 MSEK.

• Full-year operating expenses rose 23.9% to 253.2 MSEK, but pro forma operational costs (excluding discontinued operations and savings) dropped 38.6%.

• Negative currency effects and asset write-downs impacted results by -45.5 MSEK for the year.

• No dividend proposed for 2025.

Outlook and guidance

• Restructuring completed; company expects recurring revenues to cover operational costs and interest from 2026.

• Pre-tax profit for 2026 is forecasted in the range of 45–55 MSEK, based on historical order intake and new cost structure.

• Management expects no further covenant breaches in 2026 due to improved cash flow.