Vestum AB (VESTUM) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello everyone and welcome to our presentation of Vestum's year-end report for 2025. My name is Simon Gothberg, CEO of Vestum and I also have our CFO Olof Andersson here. So let's start with a summary of the full year 2025. We have continued to streamline the business and increase the level of specialization in the group. Five divestitures were completed throughout the year and two acquisitions. We also successfully refinanced the balance sheet and redeemed all outstanding bonds. As for financial performance, it's been a challenging year with an uncertain macro environment and continued low economic activity in the Nordics. Even so, we delivered positive organic growth of 1% and an improved adjusted EBITDA margin from 9.8% to 10.1%. Free cash flow excluding changes in net working capital also improved from 127 million to 137 million. we've also continued to invest in growth both organically and through acquisitions mainly in our product related companies in the segments niche products and flow technology moving on to some highlights from the fourth quarter it's it's great to see that we for the first time in 10 quarters delivered growth in adjusted EBITDA, not least driven by a margin improvement from 8.8% to 10.8%. Cash flow was as expected strong with cash flow from operating activities of 164 million in comparison to 117 last year. One acquisition was completed in the quarter, which drove up leverage as measured by financial net debt in relation to reported EBITDA to 3.4 times. Let's have a look at the segments, starting with the Flow Technology segment. This segment has developed positively with profit growth and margin expansion across all markets. Sales grew by 23%, while the EBITDA margin increased from 14.8% to 21.6%, driven by both organic development and ac...