Slides
Page 1
Year-end presentation January-December 2025 Vestum AB (publ)2025 Q4
Page 2
Vestum Internal Summary 2025 • Increased level of specialisation driven by M&A • Completed five divestitures and two acquisitions • Successfully re-financed the balance sheet and redeemed all outstanding bonds Streamlining continued • Organic growth of 1% (-7%) • Adjusted EBITA margin of 10.1% (9.8%) • Free cash flow, excluding change in NWC, of SEK 137m (127m) Stable performance in a challenging market • Organic growth investments in several businesses as seen in increased capex • Two acquisitions – both of which in the Flow Technology segment in the UK Growth investments 10.1% Adj. EBITA margin 2 Number of acquisitions 1.0% Organic growth
Page 3
Vestum Internal Highlights Q4 2025 • Growth in adjusted EBITA for the first time in 10 quarters • Growth in cash flows • Adjusted EBITA margin expansion to 10.8% (8.8%) • One acquisition completed during the quarter • Leverage, as measured by reported EBITDA, increased to 3.4x driven by the acquisition 975 Net sales (SEKm) 105 Adj. EBITA (SEKm) 10.8% Adj. EBITA margin 164 Cash flow (SEKm) -1% Organic growth 3.4x Leverage multiple
Page 4
Flow Technology segment • Overall solid demand with double digit organic growth, adjusted for currency • Growth in all geographies • Margin expansion driven by product mix and acquisitions • Beginning to see positive effects of the new UK investment plan AMP8 • Market outlook remains favourable Flow Technology Market leading product technology specialists in improving water infrastructure 212 267 226 231 256 258 287 288 289 341 317 354 44 65 34 33 51 55 52 43 52 66 66 76 20,6% 24,4% 15,0% 14,4% 20,0% 21,3% 18,1% 14,8% 18,1% 19,4% 20,7% 21,6% Q1 2023 Q2 2023 Q3 2023Q4 2023 Q1 2024 Q2 2024Q3 2024Q4 2024 Q1 2025 Q2 2025Q3 2025Q4 2025 SEK 1,300m LTM net sales SEK 261m LTM EBITA 20.0% LTM EBITA margin
Page 5
Niche Products segment • Sales and profitability in line with last year • Low-margin business divested after end of quarter – will boost profitability going forward • Focus on growing volumes and expanding profitability Niche Products Leading product companies in selected technology niches SEK 694m LTM net sales SEK 83m LTM EBITA 12.0% LTM EBITA margin 219 209 191 198 170 190 165 181 170 187 160 177 32 34 30 23 16 22 27 21 17 23 23 21 14,6% 16,3% 15,8% 11,6% 9,7% 11,6% 16,5% 11,5% 10,0% 12,4% 14,1% 11,6% Q1 2023 Q2 2023 Q3 2023Q4 2023 Q1 2024 Q2 2024Q3 2024Q4 2024 Q1 2025 Q2 2025Q3 2025Q4 2025
Page 6
Solutions segment • Lower sales in absolute terms driven by divestitures in Q1 2025 and Q4 2025 • Low-margin businesses divested after end of quarter – will boost profitability going forward • Sequential profitability decrease driven by seasonality effect • Continued to see positive signs in the market, improved volumes and profitability likely in Q2 2026 Solutions Specialised solutions for maintaining, developing and streamlining properties and transport networks SEK 1,784m LTM net sales SEK 88m LTM EBITA 4.9% LTM EBITA margin 589 684 654 754 568 638 569 684 442 486 413 444 47 65 76 73 25 47 52 50 21 25 23 20 8,0% 9,5% 11,6% 9,7% 4,4% 7,3% 9,1% 7,4% 4,8% 5,0% 5,6% 4,4% Q1 2023 Q2 2023 Q3 2023Q4 2023 Q1 2024 Q2 2024Q3 2024Q4 2024 Q1 2025 Q2 2025Q3 2025Q4 2025
Page 7
10,4% 11,8%11,6% 10,8% 8,2% 10,3% 11,8% 8,8% 8,7% 10,1% 11,0%10,8% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024 2025 Net sales and adjusted EBITA per quarter Adjusted EBITANet salesSEKm Adjusted EBITA margin LTM 3,776 SEKm LTM 383 LTM 10.1% 993 1 171 1 070 1 182 991 1 083 1 019 1 153 900 1 012 889 975 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024 2025 103 138 124 127 81 111 120 102 78 102 98 105 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024 2025 10,4% 11,8% 11,6% 10,8% 8,2% 10,3% 11,8% 8,8% 8,7% 10,1% 11,0%10,8% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024 2025
Page 8
Net sales growth in Q4 • Net sales in the quarter decreased by 15% vs same quarter last year driven primarily by the divestments in Q1 and Q4, which to some extent was offset by the acquisition of Nortech and DFS • Organic growth was negative 1%, which is in line with the development in the previous quarter 1 153 -147 -19 -11 975 Q4 2024 Acquisitions & divestments Fx Organic growth Q4 2025 SEKm
Page 9
LTM free cash flow bridge SEKm • LTM cash flow from operating activities, before NWC, was SEK 37m higher than previous quarter • Net working capital release in Q4 in line with expectations • LTM capex spending increased from SEK 73m last quarter to SEK 83m • LTM free cash flow amounted to SEK 111m, or SEK 137m excluding change in NWC 340 -26 -83 -119 111 CF Op Activities before NWC Change in NWC Capex Leasing amort. FCF
Page 10
• Reported leverage at period end increased to 3.4x, in line with expectations, driven by the acquisition of DFS in October • Earn-out debt amounted to SEK 24m Net debt and leverage 2,5 2,6 2,4 2,1 2,0 2,0 2,1 1,4 1,4 1,6 1,6 1,9 2,7x 2,9x 2,8x 2,5x 2,5x 2,7x 2,8x 2,2x 2,1x 2,7x 2,8x 3,4x 0 1 2 3 4 5 0,0x 0,5x 1,0x 1,5x 2,0x 2,5x 3,0x 3,5x Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024 2025 Financial net debt, SEK Bn Financial net debt / EBITDA R12 months (Leverage) Financial net debt Financial net debt / EBITDA R12 months (Leverage) Financial target, 2.5x
Page 11
Initiated structural changes • The Board of Directors has decided to carry out a structural split of the Group • Parts of the Flow Technology segment is intended to be organised as a separate business • Decision based on Vestum currently operating with two clearly distinct business logics: – Product companies with focus on water infrastructure in Northern Europe (parts of the Flow Technology segment) – Product and services companies with focus on Swedish industry and infrastructure (Niche Products and Solutions segment) • Decision also includes to evaluate further structural alternatives for the separated Flow Technology business – including a possible future sale
Page 12
Vestum Internal Summary • Growth in adjusted EBITA and cash flows with strong uptick in margin • Solid performance in Flow Technology and strong market outlook in coming years • Niche Products in line with last year – low-margin divestiture after end of quarter to boost profitability going forward • Solutions still at historical low profitability levels driven by challenging market conditions in the Swedish construction industry - continued positive market outlook signs, likely to see improved volumes and profitability from Q2 2026 • Structural changes initiated