Comments on the report

Fourth quarter

The Group’s consolidated net sales for the period decreased by 10 percent compared to last year and amounted to SEK 925 M (1,033). The decline is explained by negative organic tonnage growth of -4 percent, negative price and mix effects of -3 percent, currency effects of -2 percent and closure of the Polish unit of -1 percent.

During the fourth quarter, the steel market in the Nordic region continued to be characterized by weak demand. The Finnish operations remained negatively affected by reduced efficiency following the transition to the new business system implemented in early March, although performance has gradually improved throughout the year.

Organically, tonnage to the manufacturing industry declined by 8 percent, primarily driven by lower demand within the subcontractor segment. However, deliveries to OEM customers remained unchanged. The recovery within the construction segment continued, with volumes increasing by 8 percent.

Gross profit amounted to SEK 81 M (82) and gross margin to a low 8.7 percent (8.0) as a result of pressured steel prices and decreased tonnage. The operating result amounted to SEK -52 M (-69) corresponding to an operating margin of -5.6 percent (-6.6). Adjusted for inventory gains and losses of SEK 1 M (-26) and items affecting comparability of SEK -1 M (-28), the underlying operating result amounted to SEK -52 M (-15) and the underlying operating margin to -5.7 percent (-1.5).

Full-year 2025

During the year, the Group’s net sales decreased by 16 percent compared to last year and amounted to SEK 3,934 M (4,667). The decline is explained by negative organic tonnage growth of -8 percent, negative price and mix effects of -3 percent, closure of the Baltic and Polish units of -3 percent and currency effects of -2 percent. Tonnage in the Swedish unit was unchanged while the Finnish unit delivered -13 percent less.

Gross profit amounted to SEK 396 M (517) and the gross margin amounted to 10.1 percent (11.1). The operating result amounted to SEK -586 M (-49). Adjusted for inventory losses of SEK -2 M (-53) and items affecting comparability of SEK -471 M (-47), the underlying operating result amounted to SEK -113 M (51). The underlying operating margin amounted to -2.9 percent (1.1).

Items affecting comparability

In the second quarter, a review of the book value of the assets was conducted as a result of the market environment and the continued high yield requirements from the market which puts pressure on the value of the assets. The impairment testing of goodwill and participations in shares in subsidiaries indicated that there was a need for a goodwill impairment of SEK -409 M to better calibrate with the current market situation. The impairment test has been carried out in accordance with the method described in the annual report. The company has conducted sensitivity analyses based on updated forecasts and assessed growth. Furthermore, assumptions have been updated regarding steel price development, operating margin, cost levels, working capital requirements, and investment needs. Impairment of goodwill resulted in the parent company to write-down its shares in the Swedish subsidiary  with SEK -234 M. The book value of the new business system was also reviewed. Certain functionality and configuration have not met the requirements and needed to be adjusted to increase efficiency, which led to a write-down of SEK -31 M. The write-downs have been recognized as items affecting comparability during the full-year, see note 4.

During the period, the closure of the units in Arvika and Poland have been finalized and the restructuring has been completed in the Swedish and Finnish units. One-off costs of SEK -30 M are recognized as items affecting comparability, see note 4.