A SOLID END TO AN EVENTFUL YEAR

FOURTH QUARTER 2025, Group

• Net sales amounted to SEK 1,325 million (1,336) corresponding to organic growth of 4%, excluding currency effects.
• EBITA amounted to SEK 359 million (265), corresponding to an EBITA margin of 27.1% (19.8). The result was strengthened by non-recurring items totalling SEK +65 million (-6).
• Adjusted EBITA increased by 9% and amounted to SEK 284 million (260), corresponding to an adjusted EBITA margin of 21.4% (19.5) and an organic increase of 0%, excluding currency effects.
• Profit before tax for amounted to SEK 260 million (163). Profit after tax amounted to SEK 225 million (108) and earnings per share amounted to SEK 5.83 (2.73).
• Cash flow from operating activities amounted to SEK 328 million (302), corresponding to a cash conversion of 134% (109), and a free cash flow per share of SEK 7.33 (5.35).
• During the period, the divestment of Sdiptech's shares in the subsidiary KSS Klimat- & Styrsystem AB was completed.

FOURTH QUARTER 2025, Core operations

• Net sales increased by 3% to SEK 1,138 million (1,103) corresponding to an organic growth in the core operations of 6%, excluding currency effects.
• Adjusted EBITA amounted to SEK 255 million (257), corresponding to an adjusted EBITA margin of 22.4% (23.3) and an organic growth in the core operations of 0%, excluding currency effects.
• During the period, the acquisition of STORR B.V. was completed.

SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD

• The Group has entered into agreements to divest 7 of the total 10 business units that are not part of the core operations as of 10 February 2026.

COMMENTS BY THE CEO

2025 was an eventful and significant year for Sdiptech. Following a strategic review, we set a new direction based on a more focused core portfolio and updated our financial targets to reflect Sdiptech's long-term potential, with a clear focus on profitable growth and a solid return on capital employed. It is satisfying that the year ended with a stable financial quarter and clear progress on our strategic initiatives.

Stable fourth quarter with strong cash conversion and reduced debt leverage.

Overall, Sdiptech delivered a stable financial result during the fourth quarter. Net sales for the core business increased by 3 percent, of which organic growth contributed 6 percent, while currency effects had a negative effect of -8 percent.

Most business units within the core operations performed well during the fourth quarter, with the exception of a few business units in Supply Chain & Transportation, which continued to suffer delays in project sales, which negatively impacted net sales and adjusted EBITA in the quarter. Within the Energy and Electrification business area, organic growth and newly acquired units contributed to strong growth during the fourth quarter, resulting in an increase in EBITA and the EBITA margin for the business area. Water & Bioeconomy developed positively for several reasons: first, we are experiencing good demand; second, we are seeing the effects of improvement initiatives such as price compensation measures and organisational changes. Safety & Security performed in line with expectations, supported by stable demand.

Adjusted EBITA for the core business decreased by 1 percent, of which organic development was unchanged, and the negative currency effect amounted to -7 percent. The adjusted EBITA margin came in at a strong 22.4 percent despite increased investments for future growth in Supply Chain & Transportation.

The Group delivered strong cash conversion of 134 per cent, corresponding to SEK 328 million in cash flow from operating activities in the fourth quarter. This was driven by improved working capital, primarily through lower inventories and reduced trade receivables. At year-end, the reported net debt to EBITDA ratio was 2.84, in line with our financial target of being below 3. The ratio reflects strong cash generation and disciplined capital allocation in line with Sdiptech’s updated strategy.

Clear progress on our strategic initiatives

In line with the previously communicated plan, we have taken important steps in the process of divesting a portfolio of selected business units, creating better conditions for more disciplined and long-term value-creating capital allocation going forward. To date, we have signed eight of the eleven planned divestments, at an enterprise value of SEK 315 million, corresponding to an EBIT multiple of more than 6 times the companies’ 2025 earnings. Our aim is to complete all divestments by the second quarter of 2026 at the latest.

Our updated strategy, with a stronger focus on total return from each business unit, is being implemented on an ongoing basis. In 2026, this is being reinforced, among other things, by aligning our incentive schemes with the Group’s new priorities. Return on capital employed, ROCE, increased to 13.5 percent in the quarter, up from 12.6 percent in 2024.

Solid acquisition pipeline for 2026

During 2025, Sdiptech has been more selective in its M&A activities and, in addition to a couple of smaller add-on acquisitions, we acquired a total of two new business units: STORR and Phase 3. STORR was acquired at the end of the fourth quarter and complements Sdiptech’s growing cold-chain cluster within the Supply Chain & Transportation business area. We enter the new year with a solid acquisition pipeline and look forward to increasing the pace of M&A during 2026.

With optimism into the new year

We continued to sharpen our management team during the year, and in early January 2026 we announced the appointment of Nico van der Merwe as the new Head of Energy and Electrification. Nico will strengthen our team with his extensive industry experience in the segment.

With a strong core portfolio, an updated business strategy, clear financial targets and a strong management team in place, I am convinced that Sdiptech has good conditions for 2026. We look forward to continuing our journey towards achieving our long-term financial targets.

Thank you for your continued and invaluable support!

Anders Mattson,
President and CEO