Seafire Year End Report 2025: Organic growth, improved results and strong cash flow

Q4 2025

• Net sales amounted to SEK 234 (211) million, an increase of 11 percent compared with the same period in 2024, of which organic growth accounted for 11 percent.
• Adjusted EBITA amounted to SEK 10 (6) million, an increase of 66 percent, corresponding to a margin of 4 (3) percent.
• EBITA amounted to SEK -8 (1) million, corresponding to a margin of -3 (0) percent. The quarter was impacted by items affecting comparability totaling SEK 18 (5) million, mainly related to restructuring projects in Borö-Pannan and Nordbutiker.
• Operating profit/loss (EBIT) amounted to SEK -17 (-92) million. The comparative period was affected by impairment of goodwill of SEK 87 million.
• Basic and diluted earnings per share amounted to SEK -0.18 (-2.26).
• Operating cash flow before tax amounted to SEK 24 (-6) million.

The period January – December 2025

• Net sales amounted to SEK 929 (905) million, an increase of 3 percent compared to 2024, of which organic growth accounted for 3 percent.
• Adjusted EBITA amounted to SEK 49 (42) million, an increase of 17 percent, corresponding to a margin of 5 (5) percent.
• EBITA amounted to SEK 33 (42) million, corresponding to a margin of 4 (5) percent. The year 2025 was impacted by items affecting comparability totaling SEK 16 (0) million net, mainly related to restructuring projects in Borö-Pannan and Nordbutiker.
• Operating profit/loss (EBIT) amounted to SEK 5 (-105) million. The comparative period was affected by impairment of goodwill of SEK 122 million.
• Basic and diluted earnings per share amounted to SEK -0.09 (-3.12).
• Operating cash flow before tax amounted to SEK 66 (49) million.

Significant events during and after the reporting period

• New financing facilities agreement of in total SEK 250 million with existing bank was signed in February 2026. The agreement runs for 2+1 years and involves lower amortization rates and lower interest margins.
• The Board proposes that no dividend should be paid for 2025.

THE CEO’S COMMENTS ON Q4

Net sales in the fourth quarter increased by 11 percent to SEK 234 (211) million. In Q4, a seasonally weak quarter across the group, nine out of twelve subsidiaries showed growth.  Adjusted EBITA amounted to SEK 10 (6) million, the improvement in earnings was driven by increased sales while the gross margin was unchanged. Operating cash flow before tax was very strong in Q4 and amounted to SEK 24 million (SEK -6 million) and was driven by active efforts in relation to working capital.
 
Stronger markets and measures are driving growth
Organic growth in Q4 amounted to +11%. For the full year, growth was 3% after a strong second half.  Seafire has a large exposure to Sweden, and in particular to the construction, consumer and installation segments. Since late spring, we have seen a clear stabilization and improvement of market conditions. DOFAB, a leading supplier of customized doors and windows, developed particularly strongly. After a few tough years, improved customer sentiment and focused sales efforts have generated growth for DOFAB of 40 percent for the full year. In SolidEngineer, proactive customer development work combined with successful collaboration with partners has led to good growth and increased market shares. A weak performance was seen primarily in Kenpo Sandwich, where the truck bodybuilding market has been sluggish but is showing signs of a stabilization.
 
Improved earnings
Adjusted EBITA in the fourth quarter amounted to SEK 10 (6) million, and for the full year 2025 to SEK 49 (42) million, corresponding to an increase of 17 percent. The improvement in earnings was driven by increased sales and implemented measures, primarily related to gross margins, which for the full year increased by one percentage point, despite the fact that the fourth quarter was impacted by some sales discounts relating to product lines that are being discontinued. The full year 2025 was particularly notable for Solid Engineer, which with new leadership and increased focus showed strong profit growth. DOFAB also reported a significant improvement in earnings, a testament to the strong operational leverage in the business model when the volume increases. The cost level in the fourth quarter was elevated, driven primarily by Borö-Pannan, which is preparing the Kalix facility to receive production when the Motala factory closes in Q2 2026. The increased cost level is temporary and we anticipate a significantly lower cost base once the move is completed.
 
Strong cash flow
Operating cash flow before tax for the full year amounted to SEK 66 (49) million. The strong cash flow is a result of structured efforts in relation to working capital, which, despite sales growth, decreased sharply during the year, as well as restraint with investments. In 2025, tax deferrals of SEK 31 million was repaid and now SEK 53 million remains with repayment plans for 2026 and 2027. Net debt at year-end including the tax deferrals amounted to SEK 251 million (SEK 300 million) and the Net debt/EBITDA ratio was 3.2x (4.2x). Seafire’s debt ratio remains high but with good margins relative to the terms of our financing agreement. With continued strong cash flow, debt is expected to continue decreasing going forward.
 
Restructuring costs
As described in the Q3 report, a number of structural changes were decided on with the aim of increasing profitability and reducing complexity and tied-up capital. Seafire reported restructuring costs totaling SEK 18 million in Q4. Borö-Pannan accounted for most of this (SEK 11 million) related to transfer of production from Motala to Kalix. The restructuring costs relate, among other things, to impairment of inventory of SEK 4 million for discontinued products, termination and relocation costs, of which about half do not affect cash flow. The changes reduce the fixed cost base and have a short payback period. 
 
Nordbutiker is discontinuing the operations in Rull and Sportig segments and is consolidating its logistics to one warehouse. Restructuring costs amounted to SEK 4 million, of which SEK 3 million do not affect cash flow, related to relocation costs as well as impairment of inventory for discontinued products. 
 
A year of decisions that create better conditions for the future
The above-mentioned restructuring measures, and number of other projects are sharpening the Group and paving the way for higher margins going forward. Our divestment of the Pexymek real estate added value and created flexibility in our balance sheet.
 
During the year, we have welcomed six new key individuals to the Group, four new subsidiary CEOs, new CFO and new COO. In small organisations with a high degree of decentralization, having the right people is absolutely crucial.
 
We have implemented a new governance model during the year and worked with our values and further developed selected areas where Seafire will create value centrally. We have a clear focus on profit growth and cash flow. With decentralized management and a courageous, decision-making culture focused on what is critical to the business, Seafire has great potential going forward.

2026
The end of 2025 was strong compared to a weak comparative quarter. Looking ahead to 2026, there are clear signs that our markets should continue to develop positively, even though the trend from Q4 is not expected to continue at the same pace. Geopolitics are unstable, and global turbulence could cause cautious markets similar to what we saw in the spring of 2025, even though Seafire is primarily exposed to Sweden and the Nordic countries. For the full year, however, end markets are expected to continue to show recovery, and with significant operational leverage, Seafire should have good potential for continued improvements in earnings. We expect some negative impact on sales from discontinued operations, but with a positive effect on earnings and cash flow.
 
Our focus on gross margins and working capital remains, as there is still significant potential. In addition to this, and to ensure the successful implementation of our transformation projects, the focus is once again on acquisitions. We have an active pipeline of attractive acquisitions that creates industrial value for our subsidiaries, which can and should become larger.
 
I would like to thank all employees and managers in the Group for your dedicated efforts in 2025, and I look forward to continuing the high level of activity during 2026.
 
To our shareholders, thank you for your continued support and trust.
 
Daniel Repfennig
President and CEO

Investor Presentation
An investor presentation on Q4 / FY 2025 is published on Seafire’s homepage https://www.seafireab.com/en/investor-relations