This article first appeared on GuruFocus .
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Reported Sales:Increased 23.7% to SEK657 million.
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Organic Sales Growth:Increased by SEK77 million or 14.5%.
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Book-to-Bill Ratio:1.1, indicating sustainable sales speed.
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EBITA:SEK38.6 million, SEK20.8 million higher than last year.
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Financial Costs:SEK20.9 million non-recurring, impacting earnings per share.
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Earnings Per Share:Dropped from SEK0.4 to minus SEK0.1.
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Cash Flow:Strong cash flow of SEK101 million compared to SEK70 million last year.
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Net Debt/EBITDA Ratio:Reduced to 2.3.
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Dividend Proposal:SEK0.6 per share.
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Full-Year Sales:Increased by SEK56 million to SEK2.206 billion.
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Full-Year EBITA:SEK111 million, SEK14 million lower than last year.
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EMS Organic Growth:19% for the quarter.
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Enedo EBITA Improvement:3.5% better than last year.
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Financial Targets for 2026:Sales between SEK2.3 billion and SEK2.5 billion; EBITA margin above 6%.
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Release Date: February 20, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Reported sales increased by 23.7% to SEK657 million, indicating strong revenue growth.
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The book-to-bill ratio is over 1.1, suggesting sustained demand and potential for continued sales growth.
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Enedo returned to profitability at the EBITA level for the quarter, marking a positive turnaround.
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Strong cash flow of SEK101 million was achieved, significantly higher than SEK70 million last year.
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The Board of Directors proposed a dividend of SEK0.6 per share, reflecting confidence in financial stability.
Negative Points
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Earnings per share dropped from SEK0.4 to minus SEK0.1 due to high financial costs.
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Restructuring costs in Enedo and Inission EMS totaled SEK6.8 million, impacting profitability.
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Organic sales showed a small decrease of SEK50 million or 2.3% for the full year.
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High financial costs, including a non-recurring SEK20.9 million impact from the AXXE acquisition, affected earnings.
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The EBITA result for the full year was SEK14 million lower than the previous year, indicating challenges in maintaining profitability.
Q & A Highlights
Q: In the quarter, Enedo achieved an adjusted margin of 6.7% EBITA. Is this a reasonable level to expect in the near term? A: If volumes remain stable, achieving a 6.7% EBITA margin is possible. However, the target for the full year is set above 2%, reflecting a cautious approach as Enedo is still on an improving journey. - Fredrik Berghel, CEO
Q: Assuming you achieve the 15% annual sales growth target, how long would it take to reach a 9% EBITA margin? A: With organic growth being extremely helpful for margins, it could take two to three years to reach a 9% EBITA margin. Some companies within the group are already achieving double-digit margins. - Fredrik Berghel, CEO
Q: Are there any updates on the strategic options for Enedo? A: The management and board are reviewing strategic options, but the main track remains the current business plan. Enedo is now a focused product company, and the goal is to grow and achieve a medium-term target of 9% EBITA. - Fredrik Berghel, CEO
Q: Were there any inventory write-downs impacting Q4 numbers? A: There were no substantial inventory write-downs in Q4. The company continuously reviews and writes off non-moving inventory, but nothing extraordinary occurred this quarter. - Fredrik Berghel, CEO
Q: What EBIT margin is AXXE generating currently? A: Specific EBIT margin figures for AXXE are not disclosed, but it is performing above average. The acquisition of AXXE was completed earlier than planned due to its strong performance. - Fredrik Berghel, CEO
Q: Are there plans for more acquisitions of OEM companies? A: The original plan includes potential add-on acquisitions for Enedo if it achieves solid growth and profitability. The power supply industry is fragmented, and acquisitions could be interesting. - Fredrik Berghel, CEO
Q: The revenue target of SEK2.3 billion to SEK2.5 billion seems cautious. Is it achievable? A: The target is considered achievable, and internal stretched targets exist. The goal is to set realistic market targets that are attainable under normal circumstances. - Fredrik Berghel, CEO
Q: What activities are underway to increase participation in the defense industry? A: Inission is working with existing customers like KONGSBERG and exploring new opportunities. The company is also a member of SOFF, which helps connect with potential defense sector partners. - Fredrik Berghel, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
