Essity AB

Latest Results (26.03.2026):

Essity AB — Quarter 4, 2025 (and full-year 2025): In Q4 2025 Essity reported net sales of SEK 34,695m (down 8.2% y/y), organic sales -1.1%, EBITA SEK 5,005m (+9% y/y) and EBITA excl. IAC SEK 5,117m (+3% y/y) with an EBITA margin excl. IAC of 14.7% (up 1.6 pp). Profit for the period (total operations) was SEK 3,224m (Q4 2024: 2,893) and EPS was SEK 4.69 (4.13). For full-year 2025 net sales were SEK 138,494m (-4.8% y/y), organic sales +0.9%, EBITA SEK 19,503m (flat y/y) and EBITA excl. IAC SEK 19,572m (-4% y/y); profit for the period (total operations) was SEK 12,718m and EPS SEK 18.37. The Board proposes a 6% higher dividend to SEK 8.75 per share and the company continued a SEK 3bn buyback program.

Revenue and growth

Q4 net sales: SEK 34,695m (-8.2% y/y). Organic sales growth Q4: -1.1% (volume -0.2%, price/mix -0.9%). Full-year net sales: SEK 138,494m (-4.8% y/y) with organic growth +0.9% for 2025.

Profitability

Q4 EBITA: SEK 5,005m (+9% y/y). Q4 EBITA excl. IAC: SEK 5,117m (+3% y/y) and EBITA margin excl. IAC 14.7% (up 1.6 percentage points). Full-year EBITA: SEK 19,503m; EBITA excl. IAC SEK 19,572m (-4% y/y) and full-year EBITA margin excl. IAC 14.1% (up 0.1 pp).

Net income and EPS

Q4 profit for the period (total operations): SEK 3,224m (vs 2,893). Q4 EPS: SEK 4.69 (vs 4.13). Full-year profit for the period (total operations): SEK 12,718m (2024: 21,048; note large prior-year discontinued items) and full-year EPS SEK 18.37 (2024: 29.83).

Cash flow and leverage

Q4 operating cash flow: SEK 4,369m (Q4 2024: 3,297). Full-year operating cash flow: SEK 14,998m. Net cash flow, continuing operations in Q4: SEK 2,243m. Net debt at Dec 31, 2025: SEK 26,543m (down SEK 4,226m vs Dec 31, 2024). Net debt/EBITDA excl. IAC: 1.03.

Shareholder returns

Board proposes dividend up 6% to SEK 8.75/share (total ~SEK 5,977m based on outstanding shares at Dec 31, 2025). SEK 3bn buyback program continued in 2025 (total repurchased in 2025: 11,895,826 Class B shares for SEK 3,160m; Q4 repurchase 2,150,228 shares for SEK 555m). Repurchased shares held at year-end: 10,005,826 (≈1.4% of outstanding).

One-off items, costs and programs

Items affecting comparability (IAC) Q4: SEK -131m (mainly restructuring). Essity launched a cost savings program in Q4 targeting ~SEK 1bn annual savings (full effect by end-2026) with estimated restructuring costs ~SEK 1bn (SEK 71m recorded in Q4 2025).

M&A and organizational actions

On Nov 12, 2025 Essity agreed to acquire Edgewell’s feminine care business (brands including Carefree, Stayfree, Playtex); transaction expected to close Q1 2026. New organization effective Jan 1, 2026 and appointments to accelerate growth and supply‑chain enablement were announced.

Other notable metrics

ROCE (Q4) increased to 17.6% (15.8). Gross margin improvements cited (lower input costs and price management). Q4 tax rate ~27.5% (tax expense SEK 1,226m in Q4). Management highlights increased market shares for >65% of branded retail sales and continued sustainability recognitions.