Q4 2025 Ferronordic AB Earnings Call Transcript
Key Points
- Gross profit increased by 12% despite a 10% decrease in revenue, showcasing effective cost management.
- Net finance costs declined by 24%, contributing to improved net profits of SEK150 million.
- The US segment showed strong performance with a 7% revenue increase and a 13% rise in operating profit.
- The acquisition of Housby Heavy in Iowa is expected to enhance the US segment's profitability and return on invested capital.
- Net debt to EBITDA improved significantly from 5.2x to 3.4x, indicating better financial health.
- Revenue decreased by 10% in Swedish kroner, with a 4% decline even after currency adjustments.
- Foreign exchange losses amounted to SEK180 million, impacting overall financial performance.
- Truck sales in Germany decreased by 50%, contributing to lower revenue in the region.
- Service and part sales declined by 6% in Swedish krona, indicating challenges in the aftermarket segment.
- Kazakhstan's operating profit was around break-even, with lower margins due to clearing old inventory.
Welcome to the Ferronordic Q4 2025 report presentation.
(Operator Instructions)
Now, I will hand the conference over to Speaker, CEO, Henrik Carlborg and CFO, Erik Danemar. Please go ahead.
Good morning, everybody, and welcome to Ferronordic's presentation of the fourth quarter of 2025.
Start by looking at some of the group highlights. Revenue in the quarter decreased by 10% in Swedish kroner to SEK1.2 billion, adjusted for currency, their revenue was more stable and was down 4%. Despite this, we increased gross profit by 12%, while at the same time increasing SG&A by only 1%. As a result, operating profit increased to SEK31 million despite one-off costs in the quarter of SEK23 million.
Net finance costs declined by 24% to SEK26 million. Net profits improved to SEK150 million despite further foreign exchange losses of SEK180 million. Net debt at the end of the quarter decreased to SEK1.6 billion, and net debt to EBITDA
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