This article first appeared on GuruFocus .
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Revenue Growth:1.6% overall growth; more than 4% organic growth when adjusting for currency effects.
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Organic Growth by Market:Sweden and Norway around 8%; other Europe around 4%.
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Adjusted EBITDA:SEK513 million, with a margin of 9.2%.
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RevPAR Growth:Nordic markets saw a 7.5% increase in local currencies; Denmark over 15% growth.
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Cash Flow:Strong cash flow development with a free cash flow of SEK914 million.
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Net Debt:SEK35 million, indicating a leverage of 0 times.
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Dividend Proposal:SEK2.60 per share, representing 53% of net profit.
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Hotel Pipeline:20 hotels with more than 4000 rooms; 9 hotels to open in 2026.
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New Openings:Scandic Stuttgart Europaviertel with 173 rooms; new hotel in Hamburg with 328 rooms planned for 2028.
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Dalata Acquisition Contribution:SEK39 million to topline and SEK35 million to EBITDA.
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Release Date: February 18, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Scandic Hotels Group AB ( FRA:10H ) reported good organic growth with revenues increasing by 1.6%, and more than 4% when adjusted for currency effects.
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The company experienced strong cash flow development and maintains a robust financial position, proposing an ordinary dividend of SEK2.60 per share.
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Occupancy rates increased across the Nordic markets, with Norway maintaining solid levels and Denmark showing strong performance with RevPAR growth of over 15%.
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The acquisition of Dalata is progressing well, with operations performing in line with expectations and contributing positively from day one.
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The company completed several major initiatives, including a new web and app and a loyalty program, which are expected to strengthen the commercial and operational platform in 2026.
Negative Points
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Finland remains a challenging market with cautious demand and pricing pressure, particularly in larger cities where capacity has increased.
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Currency headwinds negatively impacted the top-line by SEK183 million in the fourth quarter and over SEK500 million for the full year 2025.
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Central costs were higher in the fourth quarter due to finalizing major initiatives, although they are expected to stabilize in 2026.
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The Finnish market's recovery is uncertain, largely impacted by external factors such as the ongoing war in Ukraine.
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The company faces potential challenges in integrating Dalata's operations, although they currently have good visibility and control over costs.
Q & A Highlights
Q: Is there any possibility to renegotiate the fixed rental agreements in Finland due to the market's slow recovery? A: Jens Mathiesen, CEO: We are comfortable with our acquisition in Finland despite the current challenges. The fixed leases are higher, but we believe the market will recover, especially once the geopolitical situation improves. We have already exited a few hotels, but the majority will remain with Scandic.
Q: Can you expand on the reported 5% price increase in Finland? A: Jens Mathiesen, CEO: Occupancy has been slightly positive, and we are now seeing a 5% increase in prices year-to-date, which is a positive sign compared to last year when prices did not increase.
Q: What needs to happen for growth to pick up in Sweden, given the soft ARR growth? A: Jens Mathiesen, CEO: Sweden, particularly Stockholm, saw a significant increase in room sales, over 12%, due to new capacity and renovations. With no new capacity expected soon, we anticipate room for improvement. Overall, Sweden grew by 8% last year.
Q: Why was the margin down in Norway despite increased room rates and occupancy? A: Jens Mathiesen, CEO: We faced tough comparables from the previous year. However, Norway remains stable with strong results, and we are gaining market share. The recent opening in Troms has been successful, supporting rate increases.
Q: Are there any concerns about unforeseen costs related to the Dalata integration? A: Par Christiansen, CFO: We have good visibility and control over the costs. The integration is progressing well, and we do not expect any surprises.
Q: What is needed for the Finnish market to improve profitability? A: Jens Mathiesen, CEO: The Finnish market needs a full recovery for profitability to improve. We are seeing positive signs with increased occupancy and prices, and we expect strong returns once the market normalizes.
Q: How is the event calendar for 2026 looking, and what impact will it have? A: Jens Mathiesen, CEO: 2026 looks promising with many concerts and more congresses in Stockholm compared to last year. This supports the region, and we see continued strong demand for travel and events.
Q: How has the partnership with SAS progressed, and what impact has it had? A: Jens Mathiesen, CEO: The partnership has been very successful, with a significant increase in loyalty members and additional turnover. We have a strong collaboration with SAS, benefiting both companies.
Q: What is the outlook for central costs in 2026? A: Par Christiansen, CFO: We expect central costs to flatten out in 2026, remaining stable in absolute terms and decreasing as a percentage of sales. The Q4 peak was due to finalizing deliverables and restructuring for efficiency.
Q: How will the integration of Dalata affect Scandic's central organization? A: Jens Mathiesen, CEO: We do not foresee changes to Scandic's organization. The integration is progressing well, with strong cooperation between both teams, and we are preparing for a smooth transition.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
