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Arjo Ends 2025 With Solid Demand, Weaker Margins and New Strategy Drive

Story Highlights
  • Arjo saw stable global demand in Q4 2025 with 3.4% organic growth, but reported lower sales, weaker gross margins and reduced adjusted operating profit due to currencies, tariffs and mix effects.
  • Strong cash flow and cash conversion allowed Arjo to maintain its dividend and confirm 2026 growth targets, while launching a strategic review under its new CEO to improve long-term profitability and market position.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Arjo Ends 2025 With Solid Demand, Weaker Margins and New Strategy Drive

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Arjo AB ( ($SE:ARJO.B) ) has provided an announcement.

Arjo reported stable global demand in the fourth quarter of 2025, posting 3.4% organic sales growth but a decline in reported net sales to SEK 2.8 billion and weaker profitability, as the gross margin fell to 42.1% and adjusted operating profit dropped to SEK 249 million, pressured by adverse currency movements, US tariffs, product and geographic mix, and margin pressure in US DVT and rental operations. Despite missing its profitability ambitions for 2025, the company delivered strong cash generation with a Q4 cash conversion of nearly 120% and full-year conversion in line with its 80% target, proposed an unchanged dividend of SEK 0.95 per share, reaffirmed its 3–5% organic growth target for 2026, and launched a strategic review under its new CEO to sharpen its long‑term direction, efficiency and market positioning, with a new plan expected in the second half of 2026.

The most recent analyst rating on ($SE:ARJO.B) stock is a Hold with a SEK33.00 price target. To see the full list of analyst forecasts on Arjo AB stock, see the SE:ARJO.B Stock Forecast page.

More about Arjo AB

Arjo AB is a medical technology company focused on products and solutions that improve quality of life for people with reduced mobility and support healthcare professionals in care environments. Its portfolio spans patient handling equipment, therapeutic surfaces, hygiene systems and related services, with a strong presence in North America, Europe and selected emerging markets, targeting hospitals and long-term care facilities amid growing demand driven by aging populations.

Average Trading Volume: 465,591

Technical Sentiment Signal: Strong Sell

Current Market Cap: SEK8.24B

For an in-depth examination of ARJO.B stock, go to TipRanks’ Overview page.

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