Addtech Posts Strong Q4 2025/26 Earnings as EBITA Beats Forecasts and Dividend Rises
Addtech Posts Strong Q4 2025/26 Earnings as EBITA Beats Forecasts and Dividend Rises
Addtech AB ended its 2025/26 financial year with a stronger-than-expected fourth quarter, supported by solid demand, improved margins, acquisitions, and disciplined cost control.
Q4 Revenue and Profit Performance
The Swedish technology trading group reported fourth-quarter net sales of SEK 5.86 billion, up 2% from SEK 5.75 billion a year earlier. Although sales came in slightly below market expectations, profitability was clearly stronger than forecast.
EBITA rose 15% to SEK 1.01 billion, compared with SEK 880 million in the same period last year. The EBITA margin improved to 17.3%, up from 15.3%, showing that Addtech was able to convert modest sales growth into much stronger earnings.
Operating profit increased 16% to SEK 862 million, while net profit climbed 13% to SEK 615 million. Earnings per share rose to SEK 2.25, compared with SEK 1.95 a year earlier.
Full-Year Results Show Steady Growth
For the full fiscal year 2025/26, Addtech reported net sales of SEK 22.70 billion, up 4% from the previous year. Organic growth accounted for 2%, while acquisitions also helped lift revenue.
Full-year EBITA increased 12% to SEK 3.64 billion, and the EBITA margin reached a record 16.0%. Profit after tax rose 14% to SEK 2.21 billion, while earnings per share increased to SEK 7.95.
Dividend Raised After Strong Cash Flow
Addtech’s board proposed a dividend of SEK 3.60 per share, up from SEK 3.20 last year. The increase reflects the company’s solid earnings, stable balance sheet, and strong operating cash flow.
Operating cash flow for the full year improved to SEK 3.00 billion, compared with SEK 2.71 billion in the prior year. In the fourth quarter alone, operating cash flow remained high at SEK 862 million.
Business Areas Deliver Mixed but Healthy Results
Addtech said market conditions were generally positive in the fourth quarter. Automation, Electrification, and Process contributed to sales growth, while Energy and Safety faced tougher comparisons and softer demand in some segments.
Electrification was one of the strongest areas, supported by demand in energy, medical technology, and special vehicles. EBITA in the segment rose sharply, helped by a favorable product mix and acquisitions.
Energy remained profitable, with good underlying demand in transmission and stable conditions in power distribution and transport. However, sales declined due to tough year-earlier comparisons and weaker order intake in previous quarters.
Industry benefited from stronger demand in special vehicles, data and telecom, and marine, although sawmill and subsea markets remained weaker.
Acquisitions Remain a Key Growth Driver
Addtech continued to expand through acquisitions during the year. The company completed nine acquisitions in fiscal 2025/26, adding about SEK 1.60 billion in annual sales and 410 employees.
Six acquisitions were completed in the fourth quarter, and two more were announced after the reporting period. Management said the acquisition pipeline remains strong, supported by Addtech’s financial position.
Outlook Remains Positive but Selective
Addtech’s management described customer activity as high, with solid order intake and a positive book-to-bill ratio in the fourth quarter. Still, some customers continued to delay investment decisions, especially in weaker end markets.
The company remains focused on profitable growth, niche acquisitions, margin improvement, and disciplined capital allocation. Its decentralized model, broad customer base, and exposure to long-term trends such as electrification, automation, energy efficiency, and infrastructure investment continue to support the outlook.
Conclusion
Addtech closed fiscal 2025/26 with a strong fourth quarter, higher profitability, improved margins, and a larger dividend. While revenue growth was modest, the company showed strong earnings quality through better product mix, acquisitions, cost actions, and high cash generation. Investors will now watch whether Addtech can maintain this momentum as it enters the new financial year.
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