Fourth quarter of 2025 in brief

• Sales totaled SEK 2,272 million (2,382)
• Operating profit (EBITA) was SEK 236 million (240)
• EBITA margin of 10.4% (10.1)
• Profit after tax was SEK 151 million (163)
• Earnings per share, basic and diluted, totaled SEK 0.56 (0.61)
• Cash flow from operating activities amounted to SEK 310 million (480)

Consolidated sales in the fourth quarter increased by 2%, adjusted for currency, in a persistently challenging environment. At the same time, the EBITA margin strengthened by 0.3 percentage points to 10.4% in relation to the comparative quarter.

Business area performance

Medical Solutions sales amounted to SEK 1,314 million (1,359); adjusted for currency, sales increased by 5%. Operating profit (EBITA) was SEK 153 million (152), with an EBITA margin of 11.6% (11.2). Investments in future growth are proceeding according to plan, both through capacity expansion in Hungary and Poland as well as through establishing operations in Malaysia. Validation deliveries in our previously communicated significant customer project, in our Hungarian operations, continued during the fourth quarter and it is estimated that these deliveries will be at about the same levels until the end of the second quarter of the year, and then subsequently increase.

Engineered Solutions sales amounted to SEK 964 million (1,033); adjusted for currency, this was a decrease of 1%. Operating profit (EBITA) is unchanged at SEK 95 million (95) and EBITA margin rose to 9.9% (9.2). Implemented cost adjustments and advanced market positions have made a positive contribution, while lower volumes and sharply increased precious metal prices have, temporarily, had the opposite effect. The Consumer Electronics market area remained on a positive trend, particularly in the Asian operations, while Hygiene saw volumes decline due to inventory adjustments at year-end. The Other market area also continued to decline during the quarter. Operations in Materials grew by a full 10% adjusted for currency. Higher volumes for network equipment in Telecom and new products and technology areas, primarily data centers, explain the positive performance.

Full year 2025 in brief

• Sales totaled SEK 9,462 million (9,664)
• Operating profit (EBITA) increased to SEK 1,065 million (958)
• EBITA margin of 11.3% (9.9)
• Profit after tax was SEK 777 million (658)
• Earnings per share, basic and diluted, rose to SEK 2.88 (2.44)
• Cash flow from operating activities amounted to SEK 1,062 million (1,377)
• The equity/assets ratio was 60% (59) and net financial liabilities were SEK 756 million (671)
• The Board proposes a dividend of SEK 1.70 per share (1.50)

Comments from the CEO

Christer Wahlquist, President and CEO of Nolato AB, commented:

For the full year 2025, the Group reported an 11% improvement in earnings, achieving an operating profit (EBITA) of SEK 1,065 million, despite significant currency headwinds. This improvement was driven by an increase in the EBITA margin by 1.4 percentage points, reaching 11.3%.

We have a sustained strong financial position with net liabilities in relation to operating profit (EBITDA) that amounted to 0.5x. This favorable financial position supports our intensified M&A agenda. We have already established a position with production on three continents. Going forward, focus will shift to complementing our existing business with expertise in new materials and technologies.

Nolato will continue along its strategic journey with increased profitable growth – both organic and acquired – based on our global capabilities that enable directing business and production to the regions that best meet customers’ needs and further reinforce our position.

Dividend

At the Annual General Meeting, the Board of Directors and the President and CEO will propose a dividend of SEK 1.70 per share (1.50), which corresponds to SEK 458 million (404). The pay-out ratio is 59% (61). The dividend yield was 2.8% on the share price as of December 31, 2025.

Annual General Meeting

The Annual General Meeting will be held on May 6, 2026 at 3 pm CET at Grevieparken, Hålarpsvägen 14, Grevie, Sweden. Shareholders who would like to submit proposals to the Nomination Committee can contact the chairman of the Nomination Committee, Henrik Jorlén, by e-mail at henrik.jorlen@gmail.com or by mail at Kommendörsgatan 4, 269 77 Torekov, Sweden.