Year-end report 2025

In the 2025 year-end report, VBG Group reports a stable fourth quarter with continued international growth.

Fourth quarter 2025

Full-year 2025

Comment from VBG Group's President & CEO, Anders ErkénVBG Group ended the year with a good fourth quarter in terms of sales, despite a geopolitical situation that remained turbulent. Net sales increased 2.8% to SEK 1,313 M (1,278), and organic growth amounted to 4.6% adjusted for acquisitions and currency effects. Currency effects had a negative impact of 10% on sales, but the underlying performance remained healthy in all divisions.

Growth in markets outside Europe and North America has accelerated, and we increased 20% in the quarter. Adjusted for currency effects, all geographic regions posted growth, which confirms the strength of our geographic diversification.

Our long-term ventures in enhancing profitability are continuing through strategic efficiency improvements, price adjustments and a broader product offering that continues to strengthen our competitiveness.

EBITA for the quarter amounted to SEK 173 M (183), with a margin of 13.1% (14.3). Operating cash flow amounted to SEK 270 M (294) and continues to provide good conditions for investments and expansion.

Full-year 2025Net sales for the full year amounted to SEK 5,394 M (5,583). EBITA amounted to SEK 699 M (796), corresponding to an operating margin (EBITA) of 13.0% (14.3). On the basis of the company's earnings, the Board of Directors proposes maintaining a dividend of SEK 7.25 (7.25), corresponding to 43.0% (33.5) of profit after tax.

Our divisionsThe contributions of the acquired companies - Italytec, Ledson and Malmedie - to the divisions' sales and results were in line with expectations. The Group's order bookings and revenue growth for the quarter, adjusted for currency effects, was in the double digits with positive performances in all divisions.

Truck & Trailer Equipment delivered a strong quarter with growth of 10.6%, driven by continued good demand in the military segment and by Ledson's strong performance. Underlying organic growth for the quarter was thus 5.2%. Stable demand in the truck segment offset the continued weakness in the semi-trailer market.

Mobile Thermal Solutions grew 9.5% in the fourth quarter, adjusted for currency effects and acquisitions, due primarily to continued robust performance in the side-by-side-segment in North America. Profitability was adversely impacted by an increase in raw materials costs, which is being addressed through price adjustments to be implemented during the first half of 2026.

At the Mobile Thermal Solutions company in Poland, technical accounting errors in inventory valuation have been detected and addressed through strengthened internal controls and processes in order to ensure long-term quality and confidence. The inaccuracies apply to the years from 2022 to 2025, and for 2025 the earnings for this quarter were impacted by SEK 13 M. The corrections pertaining to 2022 through 2024 are reported in Note 2 on page 20 in the year-end report 2025.

Ringfeder Power Transmission faced record-high comparative figures from 2024, and returned negative underlying organic growth of 7.6%. Robust order bookings in the quarter bode well for good growth going forward. Operating profit (EBITA) was strengthened by a reversal of an earnout linked to the acquisition of Carlyle Johnson, which was completed in 2021.

The futureThe geopolitical situation remains unpredictable and we are in a business environment that is characterized by serious turbulence. The world is moving towards a multipolar, fragmented structure, with regional alliances, technological competition and geopolitical risk becoming increasingly significant.

VBG Group is well-prepared to face these conditions. Our diversified operations, robust operational resilience and solid financial position provide us with stability and agility. We are well positioned, with a regional value chain that enhances our resilience in turbulent business conditions. The solid experience and industrial expertise that we have gathered in the Group's employee community give us the strength and the capacity for continued development. I would like to thank our dedicated and skilled staff for a quarter of hard and diligent work.

Order bookings in the quarter increased 16% adjusted for currency effects, which provides us with a strong starting point ahead of 2026. Going forward, we will be focusing on expanding our customer base and enhancing our customer offering through an expanded product range that increases customer value. We are seeing good opportunities for future acquisitions that can complement the business and promote continued profitable growth.

Thank you for your continued confidence in VBG Group.

ContactAnders Erkén President & CEO VBG GroupTelephone: +46 521 27 77 88E-mail: [email protected]

About UsVBG Group AB (publ), domiciled in Vänersborg, is the Parent company of an international engineering Group with wholly owned companies in Europe, North America, Brazil, South Africa, India, Australia and China. The Group's operations are divided into three divisions - Truck & Trailer Equipment, Mobile Thermal Solutions and Ringfeder Power Transmission - with products that are marketed under strong, well-known brands. VBG Group AB's Series B share was introduced on the stock exchange in 1987 and is listed today on the Nasdaq Stockholm Mid Cap list.

This information is information that VBG Group AB (publ) 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 2026-02-18 11:48 CET.

Attachments2025 Q4 VBG GROUP ENG