Alfa Laval Corporate AB (ALFA) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning and welcome to Alfa Laval's fourth quarter and full year earnings call for 2025. So Fredrik and I, we will give you a rundown presentation, a summary of the quarter and the year, and then we will go to the Q&A as always. So let me start with some introductory comments to the quarter and the year. In all, we felt it was a strong year in 2025, resulting in record invoicing and record earnings, with earnings per share for the first time climbing to 20 sec per share. The supply chain was strong, especially in the quarter, and we delivered a record invoicing of 19 billion SEC in the fourth quarter. With that said, we still need capacity additions that are required to support our customer base in the data center applications. And yesterday, the board of directors approved a targeted CapEx program of 1 billion SEC for this purpose specifically. Then finally, during 2025, Alfa Laval has prepared for further growth by simplifying the operating model and consolidating the business unit structure. It is a substantial reorganization of the company. And as of January 1st, the new organization is operational after considerable efforts on many hands. And with that, let's move on to key figures. Orders held up well with a 2% organic decline in Q4. We had good support and strong demand from the US and several important Asian markets. The margin was okay, and as always, a bit affected by the seasonal high share of project invoicing. In addition, we carried approximately 150 million sec of one-off costs, partly related to the ongoing reorganization program. On a divisional level, first to the energy division. Orders reached an all-time high in the quarter at 6.1 billion SEC with firm demand in both HEVAC and cleantech applications. Data center orders were increasing as ant...