Boreo Plc, FINANCIAL STATEMENTS RELEASE JAN. 1 TO DEC. 31, 2025
February 13, 2026, at 9:00 EET
A strong year-end performance
October-December 2025
- Net sales increased by 18% to EUR 46.3 million (2024: 39.2). Organic growth was 12%.
- Operational EBIT increased by 33% to EUR 2.8 million (2024: 2.1) and amounted to 6.0% of net sales (2024: 5.3%).
- EBIT increased to EUR 2.1 million (2024: 1.7).
- Net cash flow from operating activities was EUR 5.6 million (2024: 7.1).
- Earnings per share increased to EUR 0.35 (2024: 0.13).
January-December 2025
- Net sales increased by 14% to EUR 153.3 million (2024: 134.0). Organic growth was 11%.
- Operational EBIT increased by 17% to EUR 8.0 million (2024: 6.8), representing 5.2% of net sales (2024: 5.1%).
- EBIT rose to EUR 6.7 million (2024: 4.1).
- Net cash flow from operating activities was EUR 7.5 million (2024: 12.0).
- Earnings per share increased significantly to EUR 0.72 (2024: -0.30).
Group's key figures
EUR million | Q4 2025 | Q4 2024 | Change | Q1-Q4 2025 | Q1-Q4 2024 | Change |
Net sales | 46.3 | 39.2 | 18 % | 153.3 | 134.0 | 14 % |
Operational EBIT | 2.8 | 2.1 | 33 % | 8.0 | 6.8 | 17 % |
relative to the net sales % | 6.0 % | 5.3 % | - | 5.2 % | 5.1 % | - |
EBIT | 2.1 | 1.7 | 22 % | 6.7 | 4.1 | 64 % |
Cash conversion, % | 176 % | 320 % | - | 83 % | 180 % | - |
Net debt / EBITDA 1) | 2.1 | 2.8 | - | 2.1 | 2.8 | - |
Return on Capital Employed (ROCE %) 2) | 8.8% | 7.9% | - | 8.8% | 7.9% | - |
EPS, EUR 3) | 0.35 | 0.13 | 169 % | 0.72 | -0.30 | - |
1) Net debt relative to operational EBITDA of the previous 12 months. Calculated in accordance with the calculation principles established with financiers. The formula for the calculation is presented later in this report.
2) Calculated on a rolling 12-month basis (R12).
3) Starting from 2022, the effect of the interest on the hybrid bond recorded in equity, adjusted by the tax effect, has been considered in the calculation of earnings per share. In Q4 2025, this net effect was EUR 0.19 per share, in Q4 2024 EUR 0.19 per share, in Q1-Q4 2025 EUR 0.72 per share, and in Q1-Q4 2024 EUR 0.70 per share.
Q4/2025 - CEO Kari Nerg:
Operational EBIT increased significantly
The final quarter of 2025 was successful for the company. Net sales increased by 18%, which supported a clear 33% improvement in operational EBIT. Net sales grew for the fifth consecutive quarter. For the full year 2025, net sales increased by 14% and operational EBIT by 17%. The strong performance in the fourth quarter was driven in particular by clearly stronger year-on-year development in the Technical Trade business area, while the Electronics business area declined from the exceptionally strong comparison quarter of the previous year.
In addition to strong earnings growth, we succeeded in managing working capital toward the end of the year. As a result of the reduction in working capital, cash conversion was strong at 176%. The company's financial position strengthened, and net debt relative to the last twelve months' operational EBITDA decreased to 2.1.
Order books continued to strengthen
The order books of our companies strengthened compared to the previous quarter and are clearly above the levels seen at the beginning of 2025. Although economic conditions, especially in Finland and the Baltic countries, are expected to remain modest in 2026, we see a solid foundation for earnings improvement.
Due to a higher-than-normal weighting of the order book toward the latter part of the year 2026 and ERP renewal projects concentrated in the early part of the year, we expect the company's earnings capacity to improve toward the end of the year. The short-term demand outlook for our companies serving industrial customers is reasonable, and in particular the strong development of the defense industry further supports the growth of Milcon, which has strengthened its position in the defense sector. Investment appetite among customers in the Finnish metal industry also picked up in the second half of the year, supporting the performance of our companies operating in the sector. The outlook for companies operating in the construction industry remains subdued, although operations in Sweden and Estonia grew significantly in 2025.
Focus on growth organically and through acquisitions
In 2026 we will focus on developing our existing companies and continue to identify acquisition targets that meet our ownership criteria. The four ongoing ERP renewal projects are progressing as planned. These projects will increase costs during the first half of 2026, but will improve efficiency and reduce fixed costs in the coming years.
The year 2025 will be remembered as the year in which we returned the company to a growth path. Operational EBIT growth of more than 15% in challenging conditions, and considering the investments made in future growth, is a strong performance. I would like to thank the entire organization for this achievement. I would also like to extend my thanks to all personnel and the company's partners for the past years. This will be my final interim report as the company's CEO, and I am grateful for the opportunity I have had to work in the company's management. I wish the company, its renewing management team and its partners success in the future. The company is well positioned to move into the next strategy period, aiming for significant growth.
Financial guidance and business model
Boreo's focus is on earnings growth with attractive return on capital. The company's long-term strategic financial targets are:
- Minimum 15% average annual operational EBIT growth
- Minimum 15% Return on Capital Employed (ROCE)
- Net debt to operational EBITDA between 2 and 3 (including acquired businesses as if they had been held for 12 months at the reporting date)
Boreo's dividend policy is to pay an annually increasing dividend per share, considering capital allocation priorities.
The above-mentioned strategic financial objectives serve as the company's financial guidelines. In line with its guidance policy, the company does not give separate short-term financial guidance.
The Board of Directors' dividend distribution proposal
The distributable assets of the parent company Boreo Plc on December 31, 2025, were EUR 28.2 million, of which the profit for 2025 is EUR 3.7 million. Boreo's aim is to pay an annually increasing dividend per share, considering capital allocation priorities. In the short term, however, the company's objective is to strengthen its financial position and thus ensure the implementation of its growth strategy also going forward. As a result, the Board of Directors of the company proposes to the Annual General Meeting that no dividend will be paid for the financial year that ended on December 31, 2025.
Briefing for investors, analysts and media
A webcast where CEO Kari Nerg and CFO Jesse Petäjä present the Financial Statements Release will be held today at 11:00 am EET. The presentation is in English and questions can be asked after the presentation. The presentation material is available before the webcast on Boreo's website: www.boreo.com/investors.
You can watch the webcast at: https://boreo.events.inderes.com/q4-2025. The event will be recorded and the recording will be available after the event at: www.boreo.com/investors.
Boreo Plc's financial reporting 2026
2025 financial statements release: 13 February 2026
Interim report for January-March 2026: 29 April 2026
Half-year report for January-June 2026: 6 August 2026
Interim report for January-September 2026: 29 October 2026
Financial reports will be published in Finnish and in English approximately at 9:00 EET. Boreo applies a 30-day silent period which ends on the day of publication. Annual Report including the Report of the Board of Directors as well as the financial statements for 2025 will be published during week 12.
Vantaa, February 13, 2026
BOREO PLC
Board of Directors
Additional information:
Kari Nerg
CEO
tel +358 44 341 8514
Jesse Petäjä
CFO
tel +358 40 706 9450
Distribution:
NASDAQ Helsinki Ltd
Financial Supervisory Authority
Principal media
www.boreo.com
Boreo in brief:
Boreo is a company listed on Nasdaq Helsinki that creates value by owning. acquiring and developing small and medium-sized companies in the long-term. Boreo's business operations are organized into two business areas: Electronics and Technical Trade.
Boreo's primary objective is sustainable long-term profit generation. This is achieved with a business model that is based on the acquisition and ownership of great entrepreneurial companies with the ability to generate sustainable long-term earnings growth and strong cash flows. The profits generated by the portfolio of companies are re-invested back to operations or to acquisitions with attractive expected returns on capital. The decentralized operating structure promoting a culture of ownership and release of entrepreneurial energy is a core pillar of the company's business concept and sustainable earnings growth is ensured through the support and coaching of companies and the personnel.
The Group's net sales in 2025 were EUR 153 million and it employs over 300 people in seven countries. The company's headquarter is in Vantaa.
