Arjo AB

Latest Results (21.04.2026):

Arjo AB — fourth quarter 2025: Revenue remained resilient with Q4 net sales of SEK 2,814 M (2,989), organic sales growth of 3.4% and full-year net sales of SEK 11,000 M. Demand was described as stable, but profitability weakened: gross margin fell to 42.1% (44.7) and adjusted operating profit for Q4 was SEK 249 M (375). Adjusted EBITDA for the quarter was SEK 526 M (653) and profit after financial items was SEK 104 M (245). Cash flow from operations strengthened to SEK 600 M (479) in Q4, giving a cash conversion of 119.9% (82.3). The Board proposes a dividend of SEK 0.95 per share and 2026 organic sales growth is guided to 3–5%.

Revenue and growth

Q4 net sales: SEK 2,814 M vs SEK 2,989 M a year earlier; organic growth +3.4% in the quarter and +3.4% for the full year. Global Sales and North America were the largest contributors; Global Sales +3.6% organic in Q4, North America +2.7% organic in Q4.

Profitability and margins

Gross margin declined to 42.1% in Q4 (44.7) mainly due to negative currency effects, US tariffs and product/geographic mix. Adjusted EBITDA margin in Q4 was 18.7% (21.9) and adjusted operating profit fell to SEK 249 M (375).

Cash flow and balance sheet

Operating cash flow improved to SEK 600 M in Q4 (479) and cash conversion was 119.9% for the quarter; full-year cash conversion was 79.3%. Interest‑bearing net debt was SEK 4,255 M at year-end and equity/assets ratio was 49.8%.

Exceptional items and one-offs

Exceptional items in Q4 totaled SEK 68 M (88), largely linked to measures to strengthen long‑term profitability (including ERP-related impairments and restructuring). Adjusted results presented exclude these items.

Regional and product trends

North America remained stable (US growth despite a late influenza season and temporary federal shutdown), Canada grew, several European and emerging markets showed healthy demand, while the UK remained weak. Strong demand continued for patient handling and service; rental margins in the US were pressured by the late flu season.

Dividend and outlook

The Board proposes a dividend of SEK 0.95 per share (≈SEK 259 M). Outlook for 2026: organic sales growth expected within Arjo’s target range of 3–5%.

Management view and next steps

CEO Andréas Elgaard notes stable demand but a disappointing margin development driven by currencies, tariffs and mix; the company is initiating a strategic review and plans efficiency and portfolio actions, with a new strategy to be presented in H2 2026.