Strong end to a successful year
Fourth quarter of 2025
• Net sales increased by 3.7 percent to SEK 1,931 million (1,863). Organic growth was 0.3 percent, and order intake was slightly higher than net sales.
• Adjusted operating profit (EBITA) amounted to SEK 252 million (201), corresponding to an operating margin of 13.1 percent (10.8).
• Operating profit (EBITA) totalled SEK 233 million (179), with an operating margin of 12.1 percent (9.6).
• Earnings per share were SEK 0.79 (0.59).
• Cash flow from operating activities amounted to SEK 224 million (125), corresponding to a cash conversion of 93 percent (64).
• Net debt/EBITDA, adjusted, was 2.6 (2.8).
• Acquisition of novia Group with annual sales of approximately EUR 50 million.
Full-year 2025
• Net sales increased by 0.5 percent to SEK 8,072 million (8,035). Organic growth was 0.3 percent, and order intake was slightly higher than net sales.
• Adjusted operating profit (EBITA) amounted to SEK 1,070 million (959), corresponding to an operating margin of 13.3 percent (11.9).
• Operating profit (EBITA) totalled SEK 1,050 million (959), with an operating margin of 13.0 percent (11.9).
• Earnings per share were SEK 3.30 (2.91).
• A share split was carried out during the period, whereby each share was divided into five new shares (share split 5:1).
• Cash flow from operating activities amounted to SEK 925 million (1,101), corresponding to a cash conversion of 86 percent (111).
• The Board of Directors proposes a dividend of SEK 1.30 (1.05) per share.
CEO's overview
2025 was another successful year for Bufab. We continued to deliver on our strategy, with a strong focus on creating value for our customers, which once again generated solid results. Altogether, this led to a record-high gross margin and operating profit.
In line with our strategy, we have broadened our customer offering during the year with more value-added services, strengthened our offering in logistic solutions and sustainability, and worked actively to implement value-based pricing across the organisation. We also secured several interesting customer projects in important industries such as defence, infrastructure and general industry. In addition, we acquired novia Group and divested a smaller manufacturing unit within Component Solutions Group in the USA. In summary, we are in a strong position for the future.
Continued varied demand
I am also very pleased with our performance in the fourth quarter despite a continued weak market. Net sales amounted to SEK 1,931 million, corresponding to an organic growth of 0.3 percent compared with the previous year. The modest organic growth during the quarter reflects the continued uncertain market, which varies between countries and customer segments, and was also negatively impacted by a large one-time project delivered in the comparative period. Among the larger customer segments, demand was strong in energy, agriculture and food, digital infrastructure and defence. Demand in the mobile home and trailer market was stable, while the construction, furniture and interior design, and the automotive industry remained weak.
Strong performance in the fourth quarter
Both the gross margin and the adjusted operating margin increased compared with the previous year and reached high levels. The gross margin amounted to 33.8 percent in the quarter, driven by purchasing savings, our focused work to improve the customer and product mix, price adjustments and the strengthened Swedish krona. Over the past ten quarters, we have gradually strengthened our gross margin and we expect continued solid development during 2026.
All the regions except UK/Ireland delivered very strong results during the quarter. Region West had a strong development driven by price adjustments and a better added-value on new projects. The adjusted operating margin for Bufab as a whole amounted to 13.1 percent in the quarter and 13.3 percent for the full year and is a step in the right direction towards our profitability target of 14 percent by 2026. The cost level increased compared with the previous year, but when adjusted for the acquisitions of novia Group and VITAL, the underlying cost level was in line with the previous year. We continue to maintain a strong focus on cost control throughout the organisation while simultaneously investing in growth.
Major customer project with a world-leading supplier to the semiconductor industry
Despite a challenging business climate, we have secured many new and interesting customer project during the year. I am particularly proud of a new contract with a world-leading manufacturer of semiconductor equipment, which will generate large volumes in 2026/2027. It is our subsidiaries Bumax and Flos that deliver 366 unique items and tailor-made logistics solutions, resulting in shorter lead times, cost savings and sustainability benefits for the customer.
Outlook and priorities - well positioned for the future
We continue to see an uncertain global environment, but this does not affect our priorities going forward. We will continue to execute on our strategy, focusing on the things we can influence: gaining market share, gradually improving our gross margin and cost base, and delivering strong cash flow. This will put us in a strong positioned for profitable growth when demand returns. So despite the uncertainty in the world, we remain optimistic about the future and in our ability to create value for our customers and shareholders.
Finally, I would like to extend my sincere thanks to our 1,900 "solutionists" around the world for their strong performance during 2025.
Värnamo, 5 February 2026
Erik Lundén
President and CEO
Conference call
A conference call will be held on 5 February 2026 at 10:00 a.m. CET. Erik Lundén, President and CEO, and Helena Häger, acting CFO, will present the results. Analysts and investors who wish to ask questions are asked to connect to the presentation via the following Teams link: Click here to join the meeting and use the "Raise Your Hand" function during the Q&A session.
Bufab AB (publ)
Box 2266
SE-331 02, Värnamo, Sweden
Corp. Reg. No. 556685-6240
Phone: +46 370 69 69 00
www.bufabgroup.com
This information is information that Bufab 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 2026-02-05 07:30 CET.
For further information, please contact:
Erik Lundén
President & CEO
+46 370 69 69 00
erik.lunden@bufab.com
About Bufab
Bufab is a trading company that offers its customers a full-service solution as Supply Chain Partner for sourcing, quality control, sustainability and logistics for C-Parts. Bufab was founded in 1977 in Småland, Sweden, and is an international group that today consists of more than 60 companies. The group has 1,900 employees in 31 countries and annual sales of SEK 8.1 billion in 2025. The share is listed on Nasdaq Stockholm since 2014. Read more on www.bufabgroup.com.
