Improved Gross Margin and Cost Control
Gross margin improved to 28.7% from 26.8% year-over-year; restructuring and efficiency actions driving underlying margin improvement despite lower sales.
Restructuring Program Progress
Program running ahead of expectations with SEK 350 million running-rate savings achieved vs SEK 750 million target by end-2026; ~300 employees impacted, 1 manufacturing site and 5 distribution centers closed; cash out ~SEK 270 million to date (SEK ~200m+ for the year).
Full-Year Profitability and Cash Generation
Full-year net sales ~SEK 21 billion with EBITA above SEK 2.2 billion (EBITA margin 10.6% vs 10.8% prior year) and free cash flow above SEK 1.4 billion.
Segment Margin Improvements
Land Vehicles EBITA improved to SEK 66 million (from SEK 23 million year-ago) with a 3.6% margin; Global Ventures EBITA increased to SEK 28 million (from SEK 24 million) and margin improved to 7.1%; Marine maintained a high EBITA level (~SEK 200 million) and defended margins despite lower sales.
Mobile Cooling: Return to Growth
Mobile Cooling returned to organic growth in Q4 with a strong recovery in North America; pricing measures implemented to address tariffs and higher labor (price increases effective from Jan 1).
Working Capital and Inventory Reductions
Inventory reduced to SEK 4.8 billion from SEK 6.5 billion year-over-year; days of inventory down to 119 from 138; working capital LTM 25% of net sales (quarter 23%), moving toward 20% target.
Debt Management Actions
Repaid USD 229 million loan in Q4; extended a USD 233 million term loan to 2029; average debt maturity 2.7 years; clear plan to repay remaining 2026 eurobond using cash on hand.
Sustainability and Innovation Progress
Female managers up to an all-time high 31%; renewable energy operations 37% (beating targets); innovation index increased to 23% from 21%; workplace injuries reduced to near all-time low.
Strong Full-Year Adjusted Earnings
Full-year adjusted EPS of SEK 2.52 and reported EPS of SEK 1.34, demonstrating underlying profitability despite volume declines.
Cash Recovery Programs
Receivables program expected to free up SEK 300–400 million by end-2026; management expects further working capital improvements and continued free cash flow generation in 2026 (albeit somewhat below 2025).