Fourth quarter, October-December 2025 in brief
- Net sales increased by 9% to SEK 2,323 m (2,126)
- Operating profit (EBIT) increased by 5% to SEK 216 m (206)
- Profit before tax (EBT) increased by 2% to SEK 212 m (209)
- Profit margin before tax (EBT %) was 9.1% (9.8)
- Profit after tax amounted to SEK 168 m (154)
- Cash flow from operating activities amounted to SEK 123 m (288)
- Earnings per share before dilution amounted to SEK 1.84 (1.69)
Full year 2025 in brief
- Net sales increased by 6% to SEK 9,071 m (8,554)
- Operating profit (EBIT) was unchanged and amounted to SEK 840 m (840)
- Profit before tax (EBT) increased by 1% to SEK 831 m (824)
- Profit margin before tax (EBT %) was 9.2% (9.6)
- Profit after tax amounted to SEK 677 m (666)
- Cash flow from operating activities amounted to SEK 921 m (1,197)
- Earnings per share before dilution amounted to SEK 7.38 (7.27)
- Equity ratio was 68% (67)
- The Board of Directors proposes a dividend of SEK 1.80 /share (SEK 1.60 /share)
A word from the CEO
We sell more transformers
During the past year, we have sold more customer unique transformers and inductors than ever before, which now represents 25% of AQ's total sales. There is a great demand for dry transformers for demanding customer applications such as data centers, railway and electric power. We are currently increasing the capacity in our factories in Finland, Hungary, the Czech Republic, China and the US to meet current and future demand. Designing transformers for new applications is complicated, even though we use the latest technology and have extensive experience. Therefore, there is an increased risk for AQ in this area compared to other products that we deliver on contract. During the fourth quarter, we received quality complaints that had a negative impact on earnings. Our design teams are working closely with our customers, and we have together decided to invest in more test equipment in our factories to increase the quality both on prototypes and serial deliveries. Our goal is to continue to grow our transformer business so that in the future we will be a world leading supplier of specialized transformers and inductors for niche applications such as data centers, electrification, ships and railway.
Acquisitions
Our growth from acquisitions during the quarter was 5%. The work to integrate mdexx and Riedel is progressing according to plan, and we continue to fill up the factories with new volumes to reach the 2026 target of 8% in EBT margin. We continue our work to make value-creating acquisitions and aim to grow through acquisitions by at least 5% per year.
Market and investments
In the quarter, our sales increased organically by 9% compared to the same quarter last year. During the year, our organic growth was 2%. This is clearly lower than our goal of selling 10% more every year. Our sales increased to electrification and defense in Europe as well as to data centers in the US, while sales decreased to buses in the US and Mexico and packaging equipment to the food industry in Europe. We believe it to be a strength that we, due to our decentralized and geographically dispersed organization, can grow despite lower demands in some of our market segments.
During the quarter, we signed an LOI for the delivery of 200 transformers and inductors for data centers in the US and received a first prototype order for 25 transformers for data centers from a new customer in the US.
During the fourth quarter, the testing of our new painting facility in Bulgaria was completed, which will enable painting of higher volumes and larger components. This is the largest machine investment we have ever made in Bulgaria. It will also improve the quality of our products and reduce our energy costs. The line will be fully operational from February 2026.
Cash flow, balance sheet and margin
Our cash flow from operating activities was SEK 123 m in the quarter. This is lower than last year and is due to increased trade receivables due to volume growth and cancelled factoring in newly acquired entities. At the same time, we have increased our inventory turnover rate to 3.2 times/year, which is positive but still lower than our target of 3.5 times/year. At the end of the year, we had a net cash position of SEK 427 m. This gives us the freedom to support continued growth with our customers and to carry out value-creating acquisitions. Our profit margin before tax (EBT) in the quarter was 9.1%. Our EBT margin in the quarter was negatively impacted by quality costs and lower margin in mdexx.
AQ's employees and culture are the secret
AQ has no patents but operates in an extremely competitive market where cost control, smart solutions to difficult problems and high productivity are the keys to success. Our people and our core values are what make us successful. I am proud that for over three decades we have managed to make a profit every quarter. At the same time, I am grateful that together we manage to maintain the corporate culture that has made us successful for so many years. Finally, I would like to thank our customers, suppliers and employees for another fun year where we all together have become a little better than before. Thank you.
James Ahrgren
CEO
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This disclosure contains information that AQ Group is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was released for publication by James Ahrgren on 12-02-2026 08:00 CET.
For further information, please contact:
James Ahrgren, CEO and IR, telephone +46 76 052 58 88 or
CFO, Christina Hegg, telephone +46 70 318 92 48
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AQ is a global manufacturer of components and systems to demanding industrial customers and is listed on Nasdaq Stockholm's main market. The Group consists mainly of operating companies each of which develop their special skills, and in cooperation with other companies, striving to provide cost effective solutions in close cooperation with the customer.
The Group headquarter is in Västerås, Sweden. AQ has 8,000 employees in Bulgaria, Poland, Lithuania, Sweden, China, Estonia, Hungary, Mexico, Finland, India, Canada, USA, Germany, Italy, Brazil, Great Britain and Czech Republic. In 2025 AQ had net sales of SEK 9 billion, and the Group has since its start in 1994 shown profit every quarter.
www.aqgroup.com
