This article first appeared on GuruFocus .
Release Date: February 10, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Net sales increased by 9% to 4.7 billion, with a strong performance in West and Central regions.
-
Adjusted EBITDA grew by 16%, reaching a 10% margin for the first time, which is a significant milestone.
-
The company maintained a stable leverage ratio of 2.26 despite completing 14 acquisitions in the year.
-
Strong cash flow was reported, supporting ongoing M&A activities and a proposed dividend of 30% per share.
-
The company entered four new markets, expanding its presence to 19 countries, indicating successful geographic expansion.
Negative Points
-
Tough comparables in the North region due to previous years defense-related sales impacted growth figures.
-
Organic growth was only 1% in Q4, indicating reliance on acquisitions and FX for overall growth.
-
The company faced a 3% FX headwind, which affected the overall financial performance.
-
There were one-off costs related to warehouse reorganization in the Netherlands, impacting organic EBITDA growth.
-
The new distribution center in Gothenburg is expected to cause some operational disturbances and additional costs in the short term.
Q & A Highlights
-
Warning! GuruFocus has detected 2 Warning Sign with FRA:I88.
-
Is FRA:I88 fairly valued? Test your thesis with our free DCF calculator.
Q: Can you explain the margin drivers in the North region, especially given the defense volumes and the comparison to Q3 margins? A: (CFO) The North region's core operations are capable of delivering a 13-14% EBITDA margin. Despite losing some higher-margin defense business, the rest of the business performed well, showing strong performance across core distribution operations. Q4 is typically the strongest quarter, which explains the margin improvement compared to Q3.
Q: What are the expectations for organic growth in the North region entering Q1, considering the impact of defense volumes? A: (CFO) The fundamentals in the North are stable and moving in the right direction. While there is uncertainty about the timing of new business, the underlying momentum is expected to remain consistent without dramatic changes.
Q: What was the impact of the new logistics center in the Netherlands on sales and EBITDA during the quarter? A: (CFO) The sales impact was minimal, with less than a million euros in extra costs affecting the quarter's results. These costs were one-time and will not continue into 2026.
Q: Can you provide guidance on capital expenditures for 2026, considering the investments in Gothenburg and the Netherlands? A: (CFO) The total cost for the Gothenburg warehouse is approximately 300 million SEK, with half spent in 2025 and the remainder spread through 2026. Post these investments, the business is expected to return to a more normal CapEx level, around 2% of revenue.
Q: How are you structuring M&A deals to maintain acquisition pace, given the high contingent liabilities? A: (CEO) We maintain a standard deal structure, typically paying 70-80% upfront with a 2-3 year earnout model. This approach has been consistent over the years, and we do not plan to adjust it to keep up the acquisition pace.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
