So good morning, everybody. Well, I would like to start by apologizing for the technical problems, but we are back. So good morning, everybody, and welcome to this Q4 and full year webcast for 2025. And with that said, let's move into the presentation. Starting with the highlights, market, the overall market conditions is still challenging. Consumer confidence is still not where we would like it to be, and at the same time, retailers and dealers, as well as OEMs, are still cautious in building inventories. Having said that, we also feel that inventories at retail level are improving. They are just now at low level, and it's very much just now a question about consumers starting to buy.
Looking at growth, 3% negative organic growth for the quarter, with Service and Aftermarket down 3%, which is obviously an improvement in comparison to previous quarters. Distribution, back to growth, very much driven by Mobile Cooling. And then we see also improvements from an OEM perspective, where is still Marine is slightly negative. We also have LV slightly negative, while we see improvements in other areas. EBITDA margin, 6% in comparison to 7.3%, but then we also need to consider that we have a major effect on FX, like for like. So we have a substantial negative effect by currencies, driven by currencies, and we will get back to that on the details.
And at the same time, as we previously communicated at the end of last quarter, we also have negative impact in Mobile Cooling, specifically from increased labor costs, since we added about 250 new people in the organization, at the same time as we also have the price corrections to compensate for the higher tariffs in Mobile Cooling. Looking at free cash cash flow, we ended up at SEK 20 million, which is a bit lower than one year ago, even there, very much influenced by the currencies. But at the same time, as we have seen, more positive order intake and backlog is starting to come to the same level as last year, and we have been building inventories for the start of the season in Q2.
At the same time, we also had later invoicing in the quarter this year in comparison to last year. All those factors have an impact on the free cash flow. Leverage ended up at 3.3 in comparison to 3.1 in previous year. If we move over to numbers, sales ended up at slightly above SEK 4 billion for the year, with 3% organic growth, 12% FX, meaning obviously a substantial impact, and then -1% by the portfolio changes that we are doing. EBITDA ending up at SEK 245 million, or an EBITDA margin of 6%, as I commented before, compared to 7.3 last year. We got a negative EPS in the quarter of SEK -0.67 earnings, adjusted negative EPS of SEK -0.39 earnings.
As commented before, cash flow, SEK 20 million, free cash flow of SEK 20 million, and leverage of 3.3. Moving to the whole year, ended up at SEK 21 billion in sales, with a total negative effect of FX for the year of 6%, 8% down organic growth, and the same 1% on portfolio changes. With EBITDA landing above SEK 2.2 billion, or an EBITDA margin of 10.6% versus 10.8%. And of course, considering the negative growth, we feel quite proud of what we are achieving, working very, very hard to keep our costs in control despite the negative top line decline. EPS ending up at SEK 1.34 earnings, with an adjusted EPS of SEK 2.52 earnings, and a free cash flow of above SEK 1.4 billion.
Net sales, obviously, we're still not there, but we're starting to get close. As you can see on the graph, we are coming from hovering around 10, 11, 12% quarter by quarter for the last 3 years. And, we saw Q3 landing on -6%, now -3%. And as commented before, we see order intake gradually improving. Difficult to say, obviously, when we are going to see, Dometic moving into positive territory, but it's quite clear as well that we are getting very close. Looking at the different segments, Land Vehicles ended up at -4%, with Americas down 10%, EMEA positive for the quarter, +1%, APAC, -10%. Marine came back to a negative growth of 3% after, slightly growth shown in Q3, and we don't see that as anything strange.
Obviously, the market needs to stabilize. We are coming from pretty negative growth. We saw +1%, now we're seeing -3%. We are expecting, obviously, to see improvements moving forward as well. Mobile Cooling, good to see that we are back to growth and optimistic about the expectation for 2026, and then Global Ventures, -3%. And we'll come back later to some more details on the different segments. Looking at different channels, no major differences. In reality is, really we see Service and Aftermarket becoming a little bit higher on the share, while the OEM channel is becoming a little bit lower, ending up at 13%. And just as comparison, we are coming from a situation, 2018, where the OEM side stood for 62% of total sales.
Looking at the different channels, again, it's quite obvious that we are moving in the right direction. Service and Aftermarket, we were positive in Europe, while we were negative in Americas. Distribution, as I commented, we have positive in parts of Global Ventures and positive on Mobile Cooling, having an effect, a 2% positive effect on the distribution channel. And then OEM is also quite clear that on one side, the European market is stabilizing. We see, especially in Southern Europe, that we are starting to see growth, while Central Europe is still sitting on a little bit too high inventories, even if they are coming down. So we expect, even from that perspective, improvements moving forward.
We also saw, as a matter of fact, the commercial vehicles showing growth for the quarter, and we have seen growth for the entire year. So that's also a positive sign that things are improving. Looking at EBITDA, as I commented at the beginning, 6% versus 7.3 last year. Looking at the underlying margin when comparing like-for-like, 2.9 higher than one year ago. FX, again, we will get back later, but had a major impact in this specific quarter. We also have the additional labor cost and the comparison to duty drawbacks in Mobile Cooling that we commented in previous quarter, was going to have an effect, also in Q4. We are happy to see gross margins improving, ending up at 28.7% versus 26.8%, despite the lower sales.
So it's clear that the restructuring is biting quite a bit. On top of the restructuring program, we also have a number of other activities to increase efficiency overall in the company. And then, even if we are showing negative EBITDA in development in the quarter, we also see that both Land Vehicles and Global Ventures are showing better margins despite the currency situation. Moving on to the specifics to Land Vehicles. We have on Land Vehicles, let's say, SEK 1.8 billion with negative organic growth of 4%. We got decline in both channels, but as I commented before, growth on the CPV channel as part of Land Vehicles.
We also showed growth in EMEA for the first time during the last 5 quarters, which is telling us really that the LV, the RV business in Europe is stabilizing. EBITDA higher, SEK 66 million in comparison to SEK 33 million last year, or 3.6% EBITDA margin, with clearly a positive impact of the global restructuring program. As we commented when we announced the program, the LV segment was going to be the one showing the major impacts during that program. We see both increased profitability in EMEA. We see reduced losses in Americas, and APAC still delivering pretty high margins, despite the drop on the top line. Marine down in organic growth, 3%, with sales aftermarket stabilizing as well, flattish in comparison to one year ago, and seeing the decline in the OEM channel.
EBITDA almost SEK 200 million or 18.5%, so a slight decline on the EBITDA margin. Defending, in other words, protecting the margins pretty well, despite the drop in the top line. In this case, the margin decrease is very much due to the currencies, as Stefan is going to come back to. And then we see even there that we are doing a pretty good job in reducing cost to compensate for the drop on the top line. Mobile Cooling, organic growth, positive. That was the positive in the quarter. We see a strong recovery in North America in Q4 in comparison to Q3. On the negative side, obviously, the margin in the quarter is not coming as a surprise.
We also already announced that we had, on one side, the positive one-time effect of the SEK 63 million coming from the duty drawback. At the same time, as we also have the inefficiencies caused on one side by labor, since we employed, again, about 250 new people, at the same time as we have additional training costs, and at the same time as we implemented prices, but the prices are kicking in in January. So we are not expecting negative effects from those factors from January this year. Moving over to Global Ventures, ending up at 3% negative as well, with good continuous organic growth in other global verticals. At the same time as we see decline in Mobile Power Solutions, driven by the soft RV industry, even if it's improving.
Even here, we are pleased to see that the EBITDA margin is improving 7.1%, and also in absolute value is improving to SEK 20 million in comparison to SEK 24 million last year. As a consequence, on one side of the sales mix, positive sales mix, at the same time as we keep working on reducing our cost. On sustainability, we are happy to see progress in all areas, but one. Injuries coming down to, I would say, all-time low in this case after a lot of investments that we have been doing across the company to improve in this area. Female managers up to all-time high, 31% in the quarter. We would like, obviously, we will continue to work in that area, but again, showing progress.
Energy, renewable energy and operations, 37%, and also beating own targets, while Innovation Index, the same, ending up at 23% in comparison to 21%, one year ago. And that's a super important one, because that has an immediate impact as well on climate. So new products drive lower climate. The one where we-
Your line is muted.
So looking at the products in the marine area, we have a new sanitation product for sailing boats that we just launched. And then last but not least, also starting to see the synergies coming from our mobile power business and introducing new products in the marine area, where we are going to increase efficiency by connecting a number of different batteries into one single device. Happy to report as well, that our global restructuring program is running slightly better than the expectations. As you may remember, we are expecting SEK 750 million in savings at the end of 2026, running rate at the end of 2026. So far, 300 employees have been impacted. We have closed one manufacturing site and five distribution centers.
We are running, at the end of December, at a rate, a saving rate of SEK 350 million, and we had cash out that also impacted obviously our free cash flow in the quarter of SEK 100 million, a little bit higher than SEK 100 million, and totally for the year, cash out has been a little bit above SEK 200 million. Then on, we keep working on the divestments. Unfortunately, we cannot communicate anything yet, but we are working on that. Then on discontinued businesses, we stopped a couple of businesses leading to a 1% negative organic growth, for the year, for total year. And we will see that number now fading away step by step. And with that said, Stefan, stage is yours.
Thank you, Juan. Good morning. We are starting with the Q4 income statement. Gross profit-wise, we continue the positive trend in improving our gross profit, and that is despite that we have a SEK 30 million negative effect from the tariff, labor cost increases within Mobile Cooling. Then we have an underlying development in the EBITDA margin, so let me save that for the next slide here, and then so we will come back to the different details on that. Further comments that on operating expenses, that we have reductions driven by global restructuring programs and other measures, and at the same time, we feel that we are able to invest in strategic growth areas like product development and sales resources.
On the net financial expenses, in the quarter, we can see that the interest on bank loans is slightly higher than last year, and that is very much driven by the fact that we have, in the short term perspective, higher debt than basically needed with the plan that we are going to repay debt. We have also done that in the later part of the quarter, and we will continue to do another repayment in May 2026. So that has been driving up the net interest on bank loans and financial income somewhat. On the tax side, the tax rate is negatively affected by non-deductible interest expenses in Sweden, and then we also have made a tax provision in the fourth quarter for ongoing tax audits.
So let's move over to the specification of the EBITDA in the quarter. As you recall, we had in Q4 last year, a duty drawback repayment of SEK 63 million related to Mobile Cooling, which was a one-time off, and that did, of course, not repeat itself this year. We also, as communicated in Q3, have a delay between the price increases we are taking out to compensate ourselves for tariff cost and higher labor cost, also mainly in Mobile Cooling, that is SEK 30 million. That is the second part for the adjustment. If we sum that up, then we have an underlying EBITDA of 6.8 versus 6% last year.
Then we have the currency impact, of course, especially the US dollar has been swinging a lot. It's almost a SEK 2 difference to the US dollar between Q4 last year and Q4 this year. And that have had an effect, which measured in EBITDA margin is 2.1%. So that's the specification on how we come to the 8.9% underlying versus 6% last year. Let's move on to the next. Coming into our cash flow statement, we have a somewhat lower operating or free cash flow than what we have seen in the past.
And from a working capital point of view, we have seen that, and also that we talked about in Q3, that we also have to build up inventory to meet demand that we are expecting, to come. And then, there is also a currency effect, in the, in the free cash flow, impacting it is approximately SEK 250 million. And then obviously, there is also an underlying lower, lower profit that is, impacting, the cash flow. Then, we have a cash out related to our restructuring program of SEK 103 million in the quarter. That means that, program to date, so starting to count from Q4 last year, we have now had a cash flow effect of SEK 270 million on our restructuring program.
As you remember, SEK 400 million is what we have said will be the cash flow impacting part of the restructuring program. On the free cash flow before M&A, interest expenses paid is down, and also taxes paid are down. Then, as you can see at the bottom, we did a repayment of $229 million in a loan here using cash on hand, which is perfectly according to plan. Yeah, moving over to the next slide, you see the free cash flow development more in a time horizon.
If we look into 2026, I mean, I still feel that the free cash flow it's probably not going to come up to the full level of 2025, but slightly below that level is my expectation for the full year of 2026. Look to the working capital, there we see positive development here. The working capital over the last 12 months is 25% of net sales. It was 29% of net sales last year. If we look not on the LTM basis, but in the quarter standalone for Q4, we are down to 23%. This is, of course, driven by the inventory balance, which is now SEK 4.8 billion, compared to SEK 6.5 billion last year.
We can also see that the days of inventory on hand is down to 119 days versus 138 last year. So I think I'm satisfied with how we have been able to drive down inventory during the year. Then there is still further potential to optimize working capital going forward, where the target is 20% of net sales. You can see the different components here, and obviously, where we have the most profound development within inventories, the other two stays pretty stable. Moving over to CapEx and R&D expenses. CapEx is a little bit down in the quarter, and we are also making strategic decisions about where we spend.
But it's also partly related to timing. If we look on R&D, it's now 3.5% of net sales, and that has been clearly a target that we have had, continue to develop and launch new products, which you also see in the Innovation Index, which is continuing to come up. Moving over to our debt maturity profile, as you see, we have some debt falling due in 2026. The EUR 2.2 billion is the remaining part of the 2026 Euro bond. EUR 100 million we paid off when we did the new bond in September in 2025, and that is intended to be paid off with cash on hand.
Then we also have SEK 0.8 billion falling due in September, and we are keeping our options open here. But if the cash situation allows for it, we are considering to pay it off in September. Looking a little bit on our debt portfolio, it now has an average maturity of 2.7 years. And we have also extended a $233 million term loan to 2029. And then the undrawn revolving credit facility of SEK 300 million is maturing in 2028.
So with that, we move over to our leverage ratio, which ended at 3.3, which is 0.1 up versus Q3, and it's of course driven by the reduced EBITDA, and which is then the impact from lower net sales, mainly. And we are highly focused in the organization on protecting margin and reducing working capital, and which we have seen in the past. And that work, of course, continue, combined with a very clear growth focus, as well. And we are, as we have said all the time, committed to drive towards our target of around 2.5 times of leverage. So with that, that was my last slide. So I hand over to you, Juan, to conclude the presentation.
Thank you, Stefan. So looking at the business, we continue to see a market stabilization, and we see also the signs in our intake and backlog situation. EBITDA in the quarter was, of course, disappointing, even for us. And of course, the currencies is not a lot that we cannot, but nonetheless, we're disappointed, clearly. Massive impact from currencies. We already commented after Q3 Mobile Cooling, and that was obviously confirmed during the quarter. Happy to see that Land Vehicles, that has been the tough first, obviously, segment, very much impacted by the RV industry, is showing better margins as well as Global Ventures. Despite, again, the currencies. Free cash flow, I want to repeat myself, currency did have an important effect even here, but we also built up some inventories in preparation for the Q2 when looking at better intake and backlog.
We have lower profits, clearly, which is also impacting the free cash flow. And on top of that, we have this one hundred million due to the restructuring program that cash out in the quarter. Leverage 3.3 versus 3.1. Difficult to predict when we are going to move into positive territory, but we feel that we are getting very, very close. We have seen the trend moving from, again, around 10%, 11%, 12% into 6% into 3%. And again, we feel confident that the intake and the backlog is going to lead us to positive territory, provided obviously, that the geopolitical situation doesn't have more negative impact on the consumer confidence. Strategically, we keep working exactly on the same topics.
Innovation, super important for us and our future, ending up at 23%, an improvement three percentage points versus last year. I'm happy to see that the global restructuring program is biting and how our gross margins are improving quarter by quarter. And with that said, with that said, I would like to open for the Q&A session.
If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. Please mute your line when you have asked your question, and please limit yourself to only two questions. You can also write your questions on the webcast page. The next question comes from Fredrik Ivarsson from ABG Sundal Collier. Please go ahead.
Thank you. Good morning, gentlemen. First, you talk about the stronger order backlog, obviously, and a gradually stronger demand. My question is, did you see any big swings from the previous quarter, or is it just smaller, gradual improvements that you see?
No, we have seen a stepwise improvement quarter by quarter since Q1. So it's a major improvement if you're comparing with Q1 step by step. And it is a little bit-
But it-
In all areas, I would say, including the OEM channel, has been showing better numbers during the last two quarters.
... Thank you. And then on the FX drag, 2 percentage points on the margin in Q4, do you have any guidance for us as we look into Q1, Q2, in terms of FX? And maybe also if you could say anything about the specific impact from tariffs during the front end of the year.
Yeah, that was an obvious question. And I can say, I mean, just to give you a little bit of guidance, I mean, if the dollar changes ±5%, that will have an effect of $47 million on the EBITDA, and equivalent on the euro side is EUR 37 million. And that is on a full year basis, right? So it's... So I mean, where are the currencies going to go here? But I mean, we have actually been spending some time on that to try to understand that. And our view, and that is, of course, followed by 100 disclaimers, but depending on certain things.
But, I would say that, that maybe we will have to assume, from the rate that we are using by the end of December until the end of March, a 5%-7% movement on, on the dollar, and maybe a 3% movement, on the euro. But, you know, that is just, I mean, as you know, the PNL is driven by an average, so, so it's obviously not moving as fast as the, as the closing rates here. But, I would say, a negative 5%-7% in the dollar rate, and then a minus 3% on the euro rate, and then you obviously need to use, the, the numbers that I gave you here in the beginning.
We are actually considering to have a specific call with analysts on the currency effects so that we can talk about it in such a format. But so it's going to be negative, but not as negative as we saw now in Q4. I mean, it's also a little bit unfortunate, obviously, that Q4 is a small quarter, and these type of effects also, because of that, has a bigger effect on the margin as such. Then tariff-wise, we are expecting that we from Q1 will have compensated ourselves with price increases, and which we also communicated in connection with the Q3 report. So we don't see any changes in that.
Perfect, thanks. And if I may squeeze in one last one for you, Stefan, on cash flow, coming back to what you said regarding the 2026 expectation, not fully reaching last year's level, I think you said. Oh, in that statement, what do you assume in terms of working capital? Because you still seem to be quite positive on the upside in working capital.
Yeah, no, but I still see that we have more to do on inventory. Then, of course, there is also going to be a component in here where we need to increase inventory to make sure that we maintain the service level to the customer. But we still have pockets where we know that we will have to continue to work with that. And, I mean, the ambition in the mid-term is to come down to 100 days of inventory, and as you know, we are 119 as we speak. And will we be able to take that full step in 2026? Maybe not, but still moving towards that target, I would say.
But then we are also working with the other components here in finding ways to improve that. So I still feel that we will, you know, continue to move towards the 20% working capital to net sales here. And as you saw in Q4, we are on 23%, and we are on LTM 25% basis. So continue to move towards that level.
Perfect. Thanks so much.
Thank you.
The next question comes from Daniel Schmidt, from Danske Bank. Please go ahead.
Yes, good morning, Juan and Stefan.
Good morning.
Morning. Two questions from me then. Just coming back to organic growth and the lack of organic growth so far, you mentioned that you've seen order intake improving since Q1 last year. It doesn't sound like that has changed recently, heading into Q1 this year. Just simply, doesn't that mean that you are in positive territory in terms of sales, organically now, or sort of-
Yeah.
The delay between ordering, taking sales longer than normal, or have you seen cancellations during the year of sort of the backlog, or what's happening there?
No, what happens, obviously, that this is a gradual recovery, month by month and quarter by quarter. So we are much closer in Q4 than we were in Q2 in comparison to Q1. So the major drop we saw really in the second half of 2023-
... and 2024. And then we entered Q1 2025 on a low level, and we have been recovering since then. Keep in mind how the market has been evolving. First, you had a drop in North America, RV. As the market on the RV in North America was stabilizing, then we got in the last quarter, the second half of 2024, the European market dropping big time, at the same time as Marine was dropping. So the American market has been improving, while the European market is starting to recover now during the last three months. So again, it's not that you have a big bang upwards or downwards when, you know, normally, being global is, is an advantage.
In our case, because of the magnitude of the drop in the different geographies, that's the reason for showing this negative growth for so long in comparison to many other companies. If you look at our American colleagues, they have been dropping 45%, but then after 18 months, they are back. As we have been recovering some areas, we have been deteriorating some other areas.
Mm.
We see the recovery on the order intake is all over. I wouldn't say that this in one geography. We see improvements all over, but still, we don't see the sales yet. Then you have, at the same time, a little bit what we have seen with Mobile Cooling, that people are super careful in building up inventories. So they place an order, and then they see whether they have the sell-through or not. And then depending a little bit on how they see it, they will wait another period of time. So I believe, really, that we are getting into more stability. But to tell you that we're going to show positive growth on the fifteenth of February, I would be lying to you. I believe that we will see still what we have seen in Marine.
One quarter, plus one or plus two, and then another quarter, plus minus three minus three. It's very, very seldom that you are dropping 10%, and then all of a sudden, you're moving to 10% growth. I believe that we are going to be, most probably, one more quarter, and then we should be seeing the growth coming back. I'm more positive on the European market. Clearly, we see that Southern Europe and the Southern European players are starting to manufacture again. They were not doing that a few months ago. We see that the German manufacturers are a little bit more hesitant. They are still talking about the dealers in Germany are still talking about a little bit too high inventories.
While at the same time, we know that companies like Knaus or like Hymer, part of Thor, are more optimistic about 2026, and we see a major gap between manufacturing in 2025 and registrations. Registrations in Europe ended up -2%, while manufacturing, after nine months, was down 17% or 25%, if you look at rolling September. So that's telling me, obviously, that we are reaching the break-even point somewhere.
Yeah. I was just sort of maybe referring to that you potentially now have said that order intake has been improving for maybe 12 months as we get through this quarter, but let's say 9 months and... But maybe you're also saying that, sort of the certainty in the order intake is a bit less, it sounds like, when it comes to dealers postponing orders and so on.
I mean, we saw that, and we have seen that in Marine, we have seen that in Mobile Cooling, that people are still hesitant to build up inventories. So they place orders, and then they wait. So everything is depending just now on the sell-through. The good news is that altogether, the inventory levels are lower, so it's going to be more and more difficult to postpone the orders. That's what we are trying to say.
Yeah. Okay, and then, then secondly, we talked about it in Q3, the Igloo court case being moved to March from September. Is still March, the date.
Yep
... for the court, and any changes to what you've provisioned?
Nope. So we still feel very confident about our provisions, and we will be in trial, I think it's the second week in March.
Okay.
I mean, our point is still that we don't believe it lack any merit, this court case. We still believe that that we should not pay anything more. That's what we basically say.
What is the length of such a trial normally?
Yeah, you know, because, I mean, there is a trial, and then, if it is a fast judge, she will—it's a she—will take a decision directly after the hearing, but they have up to six months time to come with their verdict, so to speak. And then there is obviously a chance to appeal after that from either side. So it's, you know, it's like we have said all along, it could be a lengthy process.
Okay. Thank you. Thank you so much.
Welcome.
The next question comes from Johan Eliason from SB1 Markets. Please go ahead.
... Yeah, hello, Juan and Stefan. Just a short question on market share developments.
Yep.
You have a little bit of a history losing some market share during the pandemic to the Chinese and the fridges-
Sure
and the one inside. How are things developing more recently in the current quarter? Obviously, disregarding the business you are closing down. Are you keeping, taking, or are you still losing some areas?
No, I think it's, it's very much the same situation. So obviously, what you, we are referring to is obviously Chinese company is very much active in North America, and I don't see that the situation has changed anything. On the rest of the business, is very much the same. So obviously, we are into a number of industries, and we are into a number of different product areas. Sometimes you lose 1% here, and then you win another % there. So I, I do believe that, I don't see any changes, altogether.
Good. Then I think you mentioned that you hoped you would regain some market share in the awnings, moving it back to the U.S. again. Has that materialized or?
Not yet. Not yet. We are working on that.
Okay. That's all I had. Thank you very much.
You are welcome.
Thank you.
The next question comes from Agnieszka Vilela from Nordea. Please go ahead.
Thank you. I have two questions. The first one, my understanding is that, when it comes to tariffs, you have been protected by the USMCA agreement, when you imported things from Canada and Mexico.
Mm.
Does the situation change at all with the Section 232 right now? Do you have like... Do you expect more tariff burden, or it does not apply to your products?
We don't see any effect so far. Then, of course, we have Mr. Trump's statement last week about 100% on tariffs on a number of different products. We don't have any more detailed information, but obviously, the communication has not been official. There's going to be or when it's going to be.
Mm.
We are in a waiting mode.
All right, understood. And then, apologies, I missed the beginning to the call, and maybe you commented on that. But can you just explain the profitability development in Marine, specifically? What are the headwinds there, and also, should we expect these headwinds to sustain during 2026?
I would say that in Q4 specifically, Marine is the segment that has been impacted the most by the currency effect. So, so that we obviously- I mean, who knows what's going to happen with the currencies? But, you know, if we are staying with the, with the what I what I mentioned before, I mean, our you know assumptions on how we believe that the currency is going to develop based upon our our average rates then I would I would expect that impact to be to be less going forward. But that's of course with some disclaimers no doubt.
Okay, and maybe just to follow up on Marine as well, just looking at the organic growth development in the business as well. Now you, I think, the organic growth declined by 3%, somewhat worse than what was the case in Q4. Any kind of flavor you could give us when it comes to your expectations for the Marine business, specifically into 2026 and beyond there?
I can give you some indications, Agnieszka. On one side, we have the European market, which obviously, size-wise, is much smaller than the American market. But we had two-digit growth in the European market, Marine, in Q4. On the contrary, we had negative growth in the American market. On the American market, what we see is that on one side, Marine dealers are still very cautious and talking about high inventories. At the same time, we see as well that engine manufacturers are starting to show nice growth on engine manufacturing, which is going to bigger boats, and that could benefit us. The question is, when are we going to see that in our order intake and in our sales?
Mm.
We have a couple of indicators that are positive. The one that obviously needs to change is dealer sentiment on the American side.
Thank you so much.
You are welcome.
Now we have a couple of questions from the webcast audience. The first one being about our restructuring measures, whether or not the current ones are enough, or do we feel that we need to come up with additional measures?
You will never be done, right? Because there is always something more to improve. But our perspective just now is that the markets... We have indications the market is improving. Priority number 1, number 2, number 3, number 4, number 5, is to put management attention on growth, while keeping, of course, full control on the cost, while carrying out the restructuring program we have. Just now, we are going for growth, and we intend to show growth in 2026.
Mm. And then there's a question on our accounts receivable program.
Mm.
If you, Stefan, please could provide a few comments-
Yeah
... and expectations on that.
... It's a program that we have been putting in place. It's a tool. I was speaking to that. We were also working with the other components, working capital, and that is an example of what we are working with. So for some of our customer bases, we have that in place now. And if I would look on what that would mean by the end of the year, so let's say by the end of 2026, I would say that it would contribute with another SEK 300 million-SEK 400 million. And then, of course, as we are a very seasonal company, it will be significantly more in certain parts of the year.
But if we look on it from end of year to the end of year, I would say compared to where we ended 2025, I would probably say that there is another SEK 300 million-SEK 400 million to be gained out of that program.
Thank you. And then a short question on FX, and in particular, full year 2025, the impact on EBITDA, approximately margin.
There we have, it's significantly less than what we have seen in... I mean, we were talking about 2.1%, units in Q4, and on the full year, it's 0.4. So this is this has been an accelerating situation, and also, of course, versus the comparison to 2024, where the dollar ended with 11.1 at the end of 2024, and now it is more on 9.1. So it's a dramatic development that we have seen there. But for the full year, 0.4% units on the profitability or on the profit margin.
Thank you. Finally, if we can share some more comments on leverage in 2026, ambitions, expectations.
Yeah, but I mean, as one important driver, of course, here is obviously growth, and as Juan quoted before, that the very clear ambition for 2026 is obviously to show growth, even though it's not going to be, you should not expect double-digit growth. It's going to be low to mid single digit growth, I would say in our base case here. So that is, of course, an important part, but then to generate to drive the other parts of free cash flow as well, in order to be able to reduce the net debt.
We also, with the plan on how to pay back gross debt, we are also going to reduce our financial net as we go. So, I still feel that we should see a reduction in leverage in 2026. Then the question is, how far that is going to be. I could say personally, I would be disappointed if that would not be a 2 at the beginning, and so that we get out of the area with a 3 at the beginning. So if you see my point.
I think just to fill in, if you go back to the last 3.5, 4 years, it has been very much about protecting margins, protecting cash flow, releasing inventories. It has been about navigating along a very, very, very tough period of time in any consumer business. At the same time, we feel that we are very, very close to turning, and that means as well, that we need to also spend as management team moving from the defense to the offense. Just now, it's about growing the company, and that will have, obviously, a major effect both on free cash flow and leverage, without forgetting cost control.
We can assure you that we will keep working on restructuring program, we will keep working on protecting margins, but at the same time, we simply need to see the results of all the hard work that we have been doing also and get back to growth.
Good. And with that, I think we have one more question from the conference call audience, please.
The next question comes from Daniel Schmidt, from Danske Bank. Please go ahead.
Yes, it's me again. Just two short follow-ups. Maybe Stefan, you mentioned reduction of debt in 2026, and you outlined that on a slide earlier today. But what is the run rate in terms of financial net, you think, heading into Q1? Just could you give us any indication? On a quarterly basis.
Okay, Daniel, can you hear us now?
Yep, yep.
I don't seem to be. Can you repeat your question? We didn't really, we were-
I was just wondering, we talked about reducing debt and all that, and you did a lot toward the end of Q4, I think, if I'm not mistaken. What is the current run rate on the financial net heading into Q1 now, on a quarterly basis?
Now, I would say that Q1, there is not going to be, it's going to be a little bit down, but not significantly. But then after May, when we are paying back the big also the remaining part of our euro bond, it should be trending down. So I would say, I mean, we are a little bit above SEK 200 now, so we should probably see that coming down to, let's say SEK 180 or something like that.
Okay. Okay. Thank you. And then just a detailed question on the tariff/labor cost impact that you had in Q4. I think that combined with SEK 30 million, and now you're raising prices to adjust your profitability in Mobile Cooling as of January. How much of that SEK 30 million can you sort of counteract with this price increases? All of it, or still you're gonna end up with higher labor costs that are still gonna have a negative impact, or how do you view it?
No, I see that on the pricing. Our expectation is really to cover up for the increases that we saw during 2025. Absolutely.
Yeah.
We increased prices, Daniel. The problem is-
Yeah
... that they are not kicking in before first of January.
Some of them.
So, most of them kicked in the year, but we had a couple of major customers, obviously, that were the prices are kicking in, in January, first of January. So we should... Our expectation is that we are going to cover up for those inefficiencies that we had in 2025.
And tariffs.
The tariffs, of course.
As of the full quarter Q1, there won't be any sort of delays into Q1?
Price increases should be effective from the first of January.
Okay. Thank you so much.
You are welcome.
That was the last question at this time, so I hand the conference back to the speakers for any closing comments.
So we would like to thank you for your attention. It's clear that we are not happy with the performance that we showed in the quarter. We have a number of underlying indicators are positive, but we cannot be happy, obviously, when our EBITDA, for whatever reason it is, is lower than one year ago, and our profit margins are lower than one year ago. Our job is left. We keep working very, very hard to prove that we are going to come back to growth, that we are going to see margin improvements, and that we are going to see higher free cash flow next year. With that said, thank you very much for your attention, and have a good day.