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Regulatory press release

Vestum’s Year-End Report 2025: Profit growth and margin expansion

Vestum
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Highlights of the period October – December 2025

  • Net sales amounted to SEK 975 (1,153) million
  • Adjusted EBITA amounted to SEK 105 (102) million, corresponding to an adjusted EBITA margin of 10.8% (8.8%)
  • EBITA amounted to SEK 112 (133) million, corresponding to an EBITA margin of 11.5% (11.5%)
  • Operating profit (EBIT) amounted to SEK 37 (60) million
  • Cash flow from operating activities amounted to SEK 164 (117) million

Highlights of the period January – December 2025

  • Net sales amounted to SEK 3,776 (4,246) million
  • Adjusted EBITA amounted to SEK 383 (415) million, corresponding to an adjusted EBITA margin of 10.1% (9.8%)
  • EBITA amounted to SEK 376 (447) million, corresponding to an EBITA margin of 10.0% (10.5%)
  • Operating profit (EBIT) amounted to SEK 91 (164) million
  • Cash flow from operating activities amounted to SEK 314 (377) million

Summarising comments by CEO Simon Göthberg

In the fourth quarter, Vestum delivered growth in adjusted EBITA and cash flows, while the adjusted EBITA margin improved from 8.8% to 10.8%. This marks the first time in ten quarters that we are generating adjusted EBITA growth. Organic sales growth for the quarter amounted to –1%. For the full year 2025, we achieved positive organic sales growth of 1%, improved adjusted EBITA margin from 9.8% to 10.1%, and higher free cash flow excluding changes in working capital, increasing from SEK 127 million to SEK 137 million – despite negative non-recurring items of approximately SEK 25 million linked to the early redemption of bonds. Throughout the year, we have invested in both organic and acquired growth and completed two acquisitions, including one in the fourth quarter, which contributed to the financial net debt in relation to reported EBITDA increasing to 3.4x.

 
The Flow Technology segment continues to develop positively with profit growth and margin expansion across all markets. Sales grew by 23% while the EBITA margin increased from 14.8% to 21.6%, driven by both organic development and acquisitions. We have implemented several new growth initiatives that have emerged through increased collaboration between the companies. We have not yet seen any positive impact from the new UK investment plan AMP8, under which more than £100 billion will be invested over the coming five years to improve water infrastructure. That said, we are beginning to see early indications that investment activity will pick up during the first half of 2026, partly supported by new framework agreements awarded to several of our companies. During the quarter, we completed the acquisition of Dynamic Fluid Solutions, a leading UK supplier of advanced pumping and fluid management systems for complex industrial and environmental applications. The company has already secured its first significant joint order together with another business within the segment. The market outlook for the segment remains favourable, and we expect stable development going forward.
 
In the Niche Products segment, volumes developed in line with previous year, while the EBITA margin improved slightly from 11.5% to 11.6%. We are beginning to see signs of a gradual recovery in the market, although the pace remains modest. Our focus continues to be on strengthening profitability in the segment, which led to the divestment of a less profitable business after the end of the quarter. This is expected to contribute to higher margins and improved resource efficiency going forward.
 
Within the Solutions segment, we have, with the aim of sharpening the segment’s focus and strengthening profitability, carried out several divestments during the year. In the first quarter, we divested both the largest and third largest company, respectively. This work continued during the fourth quarter and into the first quarter of 2026, where we have divested a number of smaller low-margin businesses. Collectively, these divestments are contributing to lower volumes, with expected margin improvements ahead. We will see the effects of these activities gradually throughout 2026. In the fourth quarter, the EBITA margin declined from 7.4% to 4.4%, partly due to low margin volumes in the divested businesses. Looking ahead, we see a slightly improved market environment, although it will likely take until the summer before we see a turnaround in both growth and margins. Our focus remains firmly on improving profitability in the segment.
 
Cash flow developed in line with expectations and remained strong during the quarter. Free cash flow amounted to SEK 113 million, an increase from SEK 72 million in the previous year. For the full year 2025, free cash flow totalled SEK 111 million, or SEK 137 million excluding changes in working capital – an improvement compared to the full year 2024.
 
On 11 February 2026, Vestum’s Board of Directors decided to carry out a structural separation of the Group, whereby parts of the Flow Technology segment will be organised as a separate business. The decision is based on the Group currently operating with two clearly distinct business logics: products with focus on British and Nordic water infrastructure, and products and services with a focus on the Swedish industry and infrastructure. These two businesses have different growth potential, limited synergies and are considered to be able to develop better as two independent Groups. The Board’s decision enables more focused development, higher profitability and a clearer strategic positioning for each Group. The Board has also decided to evaluate additional structural alternatives for the separated Flow Technology business – including a possible future sale. However, no decision on a divestment has been made, and all alternatives will be evaluated based on what is considered to create the most value for the company’s shareholders.
 
The market outlook for the Flow Technology segment remains favourable for the coming years, and we have a strong pipeline of acquisition candidates, particularly in the UK. At the same time, the markets for Niche Products and Solutions are gradually improving, and with an increased focus on organic development, we aim to strengthen profitability and increase volumes from the historically low levels at which we currently operate. We look forward to 2026.
 
The Year End Report is available on Vestum’s website: https://www.vestum.se/en/ir/financial-reports/

For additional information, please contact:

Olof Andersson, CFO, Vestum AB (publ)
Email: olof.andersson@vestum.se

About Vestum

Vestum is an industrial group that provides services and products to the infrastructure sector. We have the most prominent specialists with extensive industry experience and strong positions in regional markets. With about 1,500 employees, we operate in Scandinavia and the United Kingdom.

For additional information, please visit: www.vestum.se

Vestum's share is traded under the short name VESTUM on Nasdaq Stockholm.

This information is information that Vestum AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2026-02-12 07:00 CET.

Attachments

Year End Report Q4 2025

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