Stock Markets January 29, 2026

Indutrade posts resilient Q4 with stronger underlying margin and robust cash flow

Net sales steady for comparable units; excluding non-recurring items EBITA margin improved as inventory reductions support operating cash flow

By Nina Shah
Indutrade posts resilient Q4 with stronger underlying margin and robust cash flow

Indutrade delivered a resilient fourth quarter with a modest rise in order intake and an improved underlying EBITA margin after adjusting for one-off items. While reported EBITA and quarterly profit declined versus the prior year, operating cash generation remained strong and the board has proposed a higher dividend. The company completed multiple acquisitions during 2025 and enters 2026 with a slightly firmer order book amid ongoing market uncertainty.

Key Points

  • Order intake rose 2% to SEK 8,196 million in Q4; comparable units +3% - impacts industrials and manufacturing supply chains.
  • Adjusted EBITA margin improved to 14.9% from 14.3% year-on-year, driven mainly by a strong gross margin - relevant to investor assessment of profitability and margins in industrial distribution.
  • Operating cash flow remained robust at SEK 1,595 million, aided by inventory reductions; full-year free operating cash flow was SEK 3.5 billion - important for funding, dividends, and acquisitions.

Indutrade reported solid operating cash flow and a stronger adjusted profitability metric for the fourth quarter, according to the company’s year-end report published Thursday.

Order intake for the industrial group rose 2% to SEK 8,196 million in the quarter, with comparable units registering a 3% increase. Reported net sales edged down 1% to SEK 8,226 million, while sales were unchanged for comparable units.

Reported EBITA fell 10% to SEK 1,094 million, corresponding to a margin of 13.3%. Excluding non-recurring items, however, the company recorded an improved underlying EBITA margin of 14.9%, up from 14.3% in the same period a year earlier. Management attributed the margin improvement primarily to a continued strong gross margin.

Profit for the quarter declined 14% to SEK 626 million, and earnings per share were SEK 1.72. Cash flow from operating activities remained strong at SEK 1,595 million, a performance supported by continued reductions in inventory levels.

The Board has proposed raising the dividend to SEK 3.10 per share, up from SEK 3.00. The company said operational and strategic progress was made during 2025 despite a backdrop of market uncertainty and muted demand, as noted by CEO Bo Annvik.

For the full year 2025, Indutrade reported net sales of SEK 32.2 billion, an annual EBITA margin of 13.8%, and free operating cash flow of SEK 3.5 billion.

Acquisition activity remained a notable feature of the year. Indutrade completed 13 acquisitions during 2025 with combined annual sales of approximately SEK 1.3 billion. Transactions in the fourth quarter included:

  • Magistor and ETS in the Netherlands
  • Thermibel in Belgium
  • ATM in Spain - Indutrade’s first acquisition in that country

Looking ahead, management reported that demand gradually improved over the course of 2025, with positive development across most large customer segments. Nonetheless, the company emphasized that market uncertainty persists. Indutrade enters 2026 with a slightly stronger order book and lower comparative figures from the prior year, according to the report.

Overall, the fourth-quarter results paint a mixed picture: headline profitability and net income were lower year-on-year, but underlying margin performance and cash generation strengthened. Inventory reductions helped underpin operating cash flow, and continued dealmaking expanded the group's footprint and sales base heading into the new year.

Risks

  • Market uncertainty and muted demand noted by management may continue to affect sales and order volumes - impacts industrials, manufacturing, and distribution sectors.
  • Comparative figures from the prior year are lower, which may complicate near-term year-on-year comparisons for revenue and margins - affects investor visibility in financial markets.
  • Integration risk from 13 acquisitions completed in 2025, including new country entry in Spain, could pose operational challenges if synergies do not materialize as expected - relevant to M&A activity in industrials and specialty distribution.

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