Karnov boosts 2025 profit and margins after EHS divestment and AI-driven growth

An announcement from Karnov Group AB ( (SE:KAR) ) is now available.

Karnov Group reported a solid finish to 2025, with fourth-quarter organic growth of 3.8% and a higher adjusted EBITA margin of 25.9%, driven by strong 10% organic growth in its Region North legal information operations and an uplift in AI package sales. For the full year, net sales rose to SEK 2.64 billion, adjusted EBITA increased nearly 15%, and profitability surged as the divestment of the EHS division boosted EBIT and net profit, while cost-efficiency programs delivered SEK 217 million in annual run-rate synergies and the company launched a SEK 500 million share buy-back to optimize its capital structure.

The disposal of the EHS businesses to Infopro Digital generated SEK 1.06 billion in proceeds and sharpened Karnov’s focus on higher-margin core content and AI-driven solutions, significantly improving earnings and leverage. Strong cash generation, with adjusted free cash flow up to SEK 445 million for the year, and enhanced margins position the group more competitively in its niche information markets, supporting both reinvestment in AI capabilities and returns to shareholders through the buy-back program.

The most recent analyst rating on (SE:KAR) stock is a Buy with a SEK125.00 price target. To see the full list of analyst forecasts on Karnov Group AB stock, see the SE:KAR Stock Forecast page.

More about Karnov Group AB

Karnov Group AB operates in the legal information and knowledge solutions sector, with a focus on delivering content-driven AI tools and digital services. The company serves professional users in its core Region North markets, where its legal information businesses are showing strong organic growth, particularly through AI-enhanced product packages.

Average Trading Volume: 124,817

Technical Sentiment Signal: Sell

Current Market Cap: SEK8.32B

See more data about KAR stock on TipRanks’ Stock Analysis page.