Stratec (SBS) Q4 2025 earnings summary

Executive summary

• 2025 was marked by geopolitical and market uncertainties, impacting supply chains and customer order behavior, but sales remained nearly stable year-over-year with strong double-digit growth in systems in Q4.

• Adjusted EBIT margin met guidance at 10.0% for 2025, down from 13.0% in 2024, reflecting lower scale benefits, adverse product mix, and effective cost management.

• Significant progress was made in development partnerships, with new programs and numerous upcoming product launches expected to drive growth from 2026 onward.

• Dividend proposal remains stable at EUR 0.60 per share, pending AGM approval.

Financial highlights

• FY 2025 sales were EUR 250.9 million, down 2.6% year-over-year (1.1% decline at constant currency).

• Adjusted EBIT was EUR 25.2 million (10% margin), down from 13% in 2024.

• Adjusted EBITDA was EUR 40.6 million (16.2% margin), down 17.4% from 2024.

• Adjusted net income dropped 30.6% to EUR 14.2 million; adjusted EPS fell to EUR 1.17.

• Free cash flow turned negative at -EUR 17.2 million, down from EUR 32.7 million in FY 2024.

• Net financial debt rose to EUR 112 million; net debt/EBITDA ratio increased to 3.3 from 1.9.

• Equity ratio stands at 55.7%.

Outlook and guidance

• 2026 sales expected to grow mid- to high-single digits (constant currency), with growth back-end loaded in H2.

• EBIT margin guidance for 2026 is 10%, with efficiency gains offset by higher input costs.

• Investment in tangible and intangible assets targeted at 6.5%-8.5% of sales.

• 2026–2028: 6%-8% annual sales growth expected; 2028–2030: 10%-12% CAGR.

• Adjusted EBIT margin targeted at 13% by 2028 and 15% by 2030.