Welcome to Sdiptech Q4 2025 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the questions-and-answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now I will hand the conference over to CEO Anders Mattsson and CFO Bengt Lejdström. Please go ahead.
Hello everybody, welcome to Sdiptech's presentation for the fourth quarter. I'm Anders Mattsson, CEO of Sdiptech, and I will be presenting here today together with our CFO Bengt Lejdström. A short intro to Sdiptech for any new listener on the call today: Sdiptech acquires, develops, and creates a long-term home for niche companies within attractive infrastructure. Today we consist of 31 companies in the group, and we operate in a decentralized structure, and each company is responsible for the day-to-day operations. We divide the group into four business areas, and each business area has a clear structural underlying growth trend that we see for the future. For the full year 2025, Sdiptech as a group has SEK 4.5 billion in revenues and SEK 968 million in adjusted EBITDA, and an adjusted EBITDA margin of 21.5%. These are numbers for our core operation, excluding companies that are currently being divested.
To start with, I would like to give you some highlights to the quarter. On a strategic level, we have made clear progress during the quarter with our divestments. Today we have signed 8 out of the 11 companies for completion. A short- and long-term target for return on capital employed is being implemented for each business unit, and we have done one acquisition in the quarter, which ties nicely into our growing Cold Chain cluster. Financially, we are satisfied with a strong organic sales growth of the quarter, showing a good demand for our products and services in the market. I also would like to highlight the strong cash conversion of 134% in the quarter, primarily coming from reduction in working capital levels. Supply Chain & Transportation had a challenging quarter, but outlook looks strong.
Priorities going forward: many of our companies have a strong return on capital employed, but we have a number of companies we can improve going forward. To be able to reach our growth target, we need to acquire in a higher pace, which is in the plan for 2026. We have several companies in the group with good momentum, and we need to ensure that we are growing smart. By smart, I mean being prudent with working capital and CapEx to facilitate that growth going forward. I also would like to follow up on the implementation of our four key strategic pillars that we presented on our Capital Markets Day during Q4 last year. The first one is around portfolio management. I already mentioned the progress of our divestment: 8 out of them have been signed for divestment with new owners.
We have achieved an enterprise value of full year 2025 EBIT times 6x for these companies, which then is in line with our expectations of the value. We have also been more prudent on which companies to allocate CapEx to during our budget for 2026, and that's also according to our updated framework on how to look at CapEx investment going forward. Second pillar, as we call proactive ownership, we have defined a short and a long-term target for each company according to the DuPont framework. We have some outliers in the group we need to focus on, but the majority of our companies have a great return on capital employed number as a base. Bengt will go through that a little bit later, but on average, 62% for the year. We have also aligned incentives towards capital efficiency in bonus plans for 2026.
The third pillar is about discipline and return-focused M&A. One example of an action here is that we have implemented a cash flow parameter in all earnout discussions that we have in early stages for the LOIs with each and every potential acquisition. We have also intensified local sourcing companies. This is not a short-term fix, and this is something that's going to be very important for us going forward to be able to increase hit rate and also efficiency in our sourcing. The fourth pillar is around clusters. Our latest was linked to our cold chain cluster, which is now four companies connected. And just for an example, the commercial due diligence was very efficient and straightforward, as we already had a lot of information about the market and actually even the company in the group.
So in summary, glad to report the strong momentum in implementing our key strategic initiatives. However, we all know that it's not just a short fix, and we look forward to a long-term mindset shift as well for us as a group. Then we are coming into the financial development in the quarter. We are satisfied with the net sales development in the quarter: +3% in total and 6% organic sales growth indicate the strong demand for our products and services in the market. The currency effect of -8% is substantial, of course, and is exposure to the sterling. In the quarter, we had a stable development for 3 out of 4 business areas. We were expecting more sales from Supply Chain & Transportation as we have over the year. We have invested for higher volumes.
For the full year, we achieved 6% sales growth and 3% organic growth. The year started weak but improved during the second half of the year and reached a solid growth number for the year, a trend that we foresee to continue in 2026 as well. No significant change in our geographic distribution of sales, with the UK as our largest market. Proprietary products are at the same amount as previously, with 67% of total sales. If we then go to Adjusted EBITDA in the quarter, Adjusted EBITDA came in at SEK 255 million. Organic growth was flat and a large negative effect from the currency of -7%. The flat organic growth is primarily a result of a weak quarter in the business area Supply Chain & Transportation, with three large companies that have invested for future growth. I will come back to that.
I will give you some highlights per business area later as well. The margin of 22.4% in the quarter is strong, even though lower compared to an exceptional margin. For the full year, Adjusted EBITDA increased by 3% to SEK 968 million. This is an organic decline of 1% and mainly due to the weak first half of the year. The full year margin of 21.5% is in line where we see the margin. We expect our Adjusted EBITDA margin to be between 21% and 21.5%. We need to ensure sustainable growth, and we need also new acquisitions with potentially lower margins coming in and being part of the mix. So with that said, I will now hand over to Bengt, and he will continue with more financial update.
Thank you, Anders. I will start then with some numbers for the full group. What you just described, Anders, was for our core operations. Looking then on the profit levels for the full group, as you can see on the left-hand side for the full years this year and a couple of years back, we have had a strong average growth of 24%, even though it was then slowing off in 2025 where it only increased 1% compared to last year. Of that 1%, there was an organic decline of 4% and another negative effect from the strong Swedish currency, especially against the British pound sterling, with a -3% currency effect on the full year. Then for non-comparable growth, that is, the companies we have acquired, the effect from the one we divested was +8%. All in all, quite good.
But of course, then the, as Anders also said, the first half of the year was a bit sluggish. For the quarter for the full group, the quarter EBITDA was an organic ±0. Looking then on the return on the capital employed, as you can see on the right-hand side, we have a chart showing, on one hand, the actual capital employed, which has been reduced a little bit from last year. The improvement then from 12.6 to 13.5 is mainly because of an increased EBITDA for the group. Of course, the 13.5% is much lower than the return on capital employed in our operations, where the average for our core operations, that is, excluding the goodwill and material assets that we book in connection with the acquisitions, continued to be strong around 60%.
We also show the number from another popular KPI, the profit over working capital, that some peers focus a lot on. We focus more on the return on capital employed, but anyhow, it has been quite steady around 80% for a number of years, which is, of course, an important KPI as well and a sign of how we manage and get profit out of our working capital. Looking then at the cash and cash conversion, you can look to the left-hand bottom. You see the cash flow generation Anders mentioned as well. It's very strong for the last quarter, exceptionally strong, I would say, perhaps at 134%. But that was mainly due to reduced inventories and also getting the money in from our customers. We have had that focus for some time now.
Of course, the activities continue to improve this even further going on, even though perhaps the cash flow generation will not be at that level consistently over time. A yellow-marked area where we have our ambitions between 70%-90% over the different quarters to stay there in the cash flow generation and conversion. Another important KPI is then the free cash flow. That is then not only the cash flow from our operations but also reducing with the leasing part and any CapEx that we do in the quarter. For the last 12 months, that free cash flow per share has been almost 17 SEK per share, up from almost 13 SEK a year ago. In that chart, you also see the earnings per share, which is somewhat lower. It's around 12 SEK per share if we exclude goodwill write-downs that we did during Q3 2025.
That is lower than the free cash flow. That is based on that we do some accounting when it comes to IFRS rules in connection with our acquisitions. So for example, we need to book non-cash interest rates, discount rates for our provisions for continued considerations. And that hurts with about SEK 1.50 per share. So that explains to some part the gap between the free cash flow and the actual net earnings per share. But all in all, we are satisfied with the quarter from a cash flow perspective and will continue to work on that. Then look at the balance sheet from a leverage perspective. One of our financial targets is now to have our total net debt leverage, the total net debt compared with the EBITDA, to be below 3.
For the quarter, measured then, of course, on a 12-month basis, it was then below. It was 2.84. You see the trend on the left-hand side of this slide. We also have another KPI for our debt, and that's what we call the financial net debt, which is all debt but excluding the provisions for earnouts. That one did also decrease to 2.12. The main reason for this is that the net debt was reduced because of cash flow coming in both from the operations and from, for example, the divestment of one of the companies that we closed then last year. These earnout provisions are always tricky to understand fully, the impact on the leverage and so on. You see on the right-hand side that our provisions booked as a debt have decreased over the years as a share of the total net debt.
Coming from almost half or even more than half of all the debt is now 25% of the net debt. That is a number we expect to decrease as each and every acquisition becomes a smaller part of the total picture. During this quarter, we did some write-downs of these provisions. That means that the actual model works, that if some companies under earnout are performing a little bit less than expected, then we don't expect to pay out the earnouts that we have booked. We release some of that debt, and that makes an income. But that's not including in our Adjusted EBITDA numbers. It's one-offs, and we have detailed those in the report towards the end if you want to dig into that in more detail. Right. So I hand over back to Anders for the business areas.
Yes. Thank you, Bengt. So we have updated the presentation and going through a little bit more in detail. Business area now. Starting with Supply Chain & Transportation, our largest business area, we had a poor performance, a relatively poor performance in the quarter, an organic decline in Adjusted EBITDA of roughly 9%. And the result is mainly due to three business units. Transport Refrigeration, GAH, they actually came out of a four-year earnout, and we have increased investment to ensure a stable operation going forward. On top of this, two larger customers have throughout the year been postponing the orders. And that was unfortunately into 2026 as well. The other company, our company within Winter Road Maintenance, Hilltip, have invested in an improved factory and organization in the US to be able to serve the North American market locally. And the cost for this has affected the result.
But we are convinced that this is the right thing to do, as shipping in containers from Finland with Finnish goods is not a long-term solution for a market where we see great potential for our products for the future. And our company within Port Automation, Certus, has experienced projects to be postponed during the year, and we were awaiting that to happen in Q4. And those global bigger projects, we feel it's the global uncertainty that is affecting these kinds of major decisions for the larger ports in this example. However, we have in the business area are not long-term as we see it, and we have a positive outlook for 2026 for the business area as a group.
Within the business area, we are also happy to announce the acquisition of Storr late in the quarter, company based in the Netherlands, and fits well, as I already said, into our Cold Chain cluster. Storr provides partition walls for refrigerated transportation. They have a product with a very high precision, which is needed to be able to separate frozen food from chilled food, for example. And the business model is interesting because the end customer, they usually don't know exactly how they would like to fit the lorry when they buy the bigger lorry. So Storr can actually come in and tailor flexible solutions depending on the needs, which also then can change over the lifetime for the lorry operator. So we look forward to continue to develop this company as part of the Sdiptech going forward.
Then we're coming into Energy & Electrification, which had a very strong quarter. Net sales SEK 281 million and Adjusted EBITDA of SEK 73 million. That's an organic sales growth of 14% and roughly the same Adjusted EBITDA organic growth as well. And also on top of that, a strong acquisition coming in Q1 and delivering a very strong result for the year. Our return on capital employed, as you can see, is below the average in the group. And we have a few companies where we see improvement potential here, and that is primarily around inventory management. The demand is strong for several business units in this business area. I just would like to highlight one company that has a very strong year, and that is Unipower. Company from Alingsås. They offer equipment for measuring and monitoring power quality in the networks.
As we know, when renewable energy sources grow and also the network is growing itself, power quality becomes even more important to protect critical applications in a production environment, or it could actually be in a hospital, for example. Even though we had a great 2025, we see that demand is still there, and we see that's going to continue for the future. On another note for this business area, we have the new leader, the new head of the business area, started in January. It feels great to have recruited somebody that is actually based in the UK for such an important segment for us where the majority of our companies is in the UK. If we then move to Water & Bioeconomy, they deliver a solid result in Q4, which is positive after a relatively weak development in Q1 to Q3.
Net sales at SEK 241 million and Adjusted EBITDA at SEK 56 million. Organic sales grows 9% and Adjusted EBITDA grows of roughly 5%. In the business area, we see that we have more potential. In 2024, we decided to make a number of leadership changes to the local businesses. We have the right products. The market is there. So we have said that we need to focus on more or bringing in more commercial-oriented leadership in some of the units. We believe this will have a positive impact for the long-term development of the portfolio. Then we go to the last business area, Safety & Security. They had a development in line with last year and kept up the high margin of 29%. Organic sales growth of 1% and organic Adjusted EBITDA growth of 2%. For the full year, Eagle Automation had a very strong year.
I mentioned it the last quarter as well. But Eagle, they provide high security gates, bollards, and blockers. Eagle's products are certified to withstand vehicle attacks, which is then a specific certification needed. Customer segments are data center and airports, for example. The strong development has led to further needs for expanding their assembly facility in the U.K. Just to tie it back to our framework around where to allocate CapEx, this is a good example of where it makes sense to increase CapEx to expand the operations to get that market share that is out there for us to gain further. Then we're moving into M&A. In the quarter, as we said, we finalized the latest acquisition of Storr, and total acquired growth landed at SEK 50 million in 2025.
For the full year, we have been more selective, which has helped us to decrease the leverage as a group as well. This is something we have been able to achieve, and we now look forward to our ambition in 2026 for M&A. As part of our updated strategic initiatives, we will be strict on our valuation principles and prioritize cash flow or IRR for each investment we're going into. Another action is that we would like to intensify the local sourcing throughout our existing companies as well. With that said, we are looking forward to more acquisition in 2026. Yeah. Just to give you a summary of the quarter, what we presented here today, we have had a solid financial result in the fourth quarter with many KPIs in the right direction.
Most of the business unit developed a stable result in Q4, except from a few businesses in Supply Chain & Transportation. But we see for 2026. We have had a selective M&A agenda in 2025, but that's going to be a strong focus now, 2026, going forward. The strategic initiatives, we are happy that we have made good progress with those. And I'm also very glad to have a team in place now going into 2026 as well. And the outlook remains positive for us as a group. So that was all from the presentation here today. I think we can open up, Bengt, for the.
If you wish to ask a question, please dial pound key 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key 6 on your telephone keypad. The next question comes from Max Bäck from SEB. Please go ahead.
Thank you. Good afternoon, Anders and Bengt. Well done in the quarter. A couple of questions from my side, if that's all right. Perhaps starting then with the supply chain and supply chain segment. You mentioned during the presentation that sales, both in the quarter but I guess for 2025 as a whole, has been impacted by some delays in project sales. You mentioned on the slide as well, on the outlook, that you have seen some early signs of improvement here in 2026. Basically, curious to hear more if you have already seen customers returning to those kind of orders already by now.
Yep. We have heard a lot of GHA is then, of course, one of our important companies in that segment. And exactly what you said there, they were pushing out orders, and they wanted to place them in 2026 instead. So order intake for early signals is looking good for the first half of the year. They are securing those orders. It's major decisions for many of these customers as they're planning to renew a total fleet, a big, let's say, retail customer in the UK. And yeah, so from that perspective, we have received some good orders for GHA. Certus is still a little bit of a hesitation of the customers. We have not lost the projects, but major ports see issues or, let's say, hesitant to place those orders. But I can also say that we are not just sitting there, of course, waiting for those bigger orders.
We are having a lot of medium and smaller orders coming in all the time. So I think that's also a way of mitigating just sitting and waiting for big orders, trying to be active and develop new potential customers as well then.
Okay. Good. Sounds promising for 2026 or perhaps the latter parts. And then turning to the energy and electrification segment, very nice profitability here for the full year, some 26.4%, I think. And I guess to some extent supported by the acquisitions that have been done as of lately. Do you see this, say, 26%, is that a sustainable level for that specific segment?
Maybe Bengt, you can answer that one.
No. We can perhaps look at that slide since we're talking about the different business areas so we know what we're talking about. Energy electrification, as you see, it has had a developmental margins going up and down together with the acquisitions. We made an acquisition early 2025 with phase III coming in and doing these connectors for temporary connections with electricity. Phase III and IDE working close together in many projects. But as you see, it has been quite steady around 25%-26% EBIT margin, the different business units going a bit up and down. But I would say that it could be fair to expect around that level going forward. Yes.
Okay. Perfect. And then a question on the opposite side for the Water & Bioeconomy segment, some 24% margin here 2025, which is, of course, a nice level but a bit below historical levels. And I guess that has been the segment the most impacted by the value inflation in the UK and so on and so forth. With the price increases and actions that have been taken in the segment, and I guess some effect is still to be seen, do you see a potential to get back to those 25%-26% profitability perhaps in one or two years?
We have been trying to challenge a little bit the past that we cannot change existing contracts there. We're trying to be a little bit more proactive with those kind of contracts. And there is some flexibility to step in and maybe make adjustments during the way. We have seen some example of that. But still, it's hurting us, as you are saying. But I think it's going to be a challenge to come back up there. We're trying. It's depending on a little bit also with inflation in salaries going into now 2026 with so many, let's say, people business in the UK. But we are working hard with all the different business units here to steadily increase. We're going to work with pricing as far as possible to mitigate staying down at, let's say, lower levels then.
Okay. Understood. And then two final ones, quite short ones. With the additional seven investments signed here after Q4, so eight in total then including KSS, how much of other operations are remaining in terms of sales and EBITDA if you look at the 2025 level, I guess, is the best?
Yeah. We reported for 2025, I think, a little bit more than SEK 50 million for these companies. Our run rate is rather around the 65 for all of these. That's at least what we base our negotiations on. So the ones we have divested are the major ones. We have three more, but they are a bit smaller. So I would say that perhaps they represent around 20% of that profit going further. It's another SEK 10 million-SEK 15 million perhaps then that we're looking at divesting.
Okay. Perfect. And then the final one. You mentioned it during the presentation, very nice cash flow here in the quarter, but also for the full year, both supported by working capital, but also CapEx levels coming down quite notably for the full year. Do you see more to do on, I guess, both working capital but also, I mean, the CapEx level relative to sales that we saw 2025? Is that a good indication of where you intend to be going ahead as well?
I think we have said that we will aim for not about 3% of sales in CapEx. And definitely, if we can be below that in a specific year, that can be good. But I think, as an example I gave you here with Eagle, we need to support with CapEx to be able to drive that further growth in some of the business areas as well. So yeah, some year can be lower, but I think we need to be up there towards the 3% to be able to have a sustainable growth going forward. On the working capital side, yes, I think we have more to do there. As I mentioned in the energy and electrification segment, the return on capital employed there around, I think it was 49%. It's definitely more room to work on the inventory side there, just an example.
So that's part of our incentive models as well for 2026 to try to bring that further down.
Okay. Perfect. That was all my questions. Thank you very much for taking them. And well done.
Thank you, Max.
Thank you.
The next question comes from Simon Jönsson from ABG Sundal Collier. Please go ahead.
Hello, guys, and good afternoon. Thanks for taking my question. So I guess I just have maybe a few follow-ups on the cash flow. I think you made it clear what you are looking for into this year in terms of CapEx and improving the working capital further. But maybe if you can just elaborate a bit more on what you have been doing more recently, specifically for the units to improve their working capital. I understand that it will be part of the incentive programs or bonus programs for units going forward here. But what more specifically have you done recently? Because we can see in the last two quarters or so that there has been a clear improvement in the trend. So yeah, just wondering more specifically what you have been successful with here in recent quarters.
I think from CapEx perspective, it's definitely now coming into 2026 as well. We have been more prudent and selective where we would like to spend the money and for what reason. We mentioned on the Capital Markets Day the framework with companies that are in a strengthened position. We need to make sure that you fix whatever you need to fix before we can accelerate growing the companies. And also that we are being selective, saying that for us, this is a harvest position. Let's try to harvest as much as possible and investing more prudent. So that framework, I think, has been quite good implemented with the company now coming into 2026.
On the working capital perspective, we have started we've always talked about it, but we have intensified the discussion with the companies during the autumn that we need to improve working capital and show them example of how other companies in the group have done or how they have performed. So I think that has, let's say, the low-hanging fruit that. Into stepping into a more structured work as we do it. We're looking at the DuPont framework. We see you have these kind of inventory levels. We believe you can move further down 5%. That will take you here. And making sure that we are aligned on what kind of action specifically you can do. So I would say low-hanging fruit initially, and now the real work starts to really go through each and every company to make sure we are optimizing it.
All right. Makes sense. Do you know already how the bonus incentives will look like in terms of cash flow specifically? Will it be overall cash flow or focus on working capital? How much will that impact bonuses? Will it be different metrics or more sort of cohesive metrics like return on capital for the units or something like that?
It's, let's say, a mix. So we have some companies that we feel need to grow more. So we have revenue targets for that. We have EBIT target usually as our most important one or with, let's say, the highest percentage. And then we have return on capital employed, or it can be working capital as a percent of revenue. That's depending on how we see what's the focus should be for the companies. But we tailor that depending on how we see the need for it. And we can also say that this company should then have 70% of the incentive based on, let's say, the capital efficiency part and only 30% on EBIT part. So that's part of our, let's say, proactive model to see what we would like to incentivize from our perspective.
All right. Thanks for that. Very good job here recently on the cash flow side specifically.
Thank you.
Right. Thanks, Simon.
The next question comes from Carl Korsheden from DNB Carnegie. Please go ahead.
Yeah. Hi, and good afternoon. Just, yeah, a couple of questions from my side. I'll just start off with a follow-up question on one of the first questions, then regarding the postponed sort of deliveries in the Supply Chain & Transportation area. Is it possible to quantify that anyhow in terms of magnitude? How much do you feel you have been promised that has been postponed to the future? And how much of that could we expect will land in Q1 versus Q2? Thanks.
No, we have actually not quantified that. It's more that some specific orders we were talking about for a long time over the year. And yeah, so it's been more about we as an organization preparing to deliver those. And we cannot actually say how much of that is actually now happening exactly in January, in February. But as I said, I think 2026 looks positive. It's not only because we believe we're going to get those bigger orders. It's also in the general that we are in a good momentum with not only these three units in the Supply Chain & Transportation segment.
Yep. That's clear. Thanks. And just, I mean, on your capital markets day, you talked a little bit about yeah, you obviously had this new financial target of growing 15%. And then you said that 2026 might be sort of a call it a slightly more of a transition year again that you will hopefully do some delivering and also complement with some additional M&A. Now, it seems like your financial position has come down a little bit quicker than expected and you have seen very strong cash flows here in the quarter. Would you reissue sort of that view still, or are you expecting you can do a little bit more M&A now in 2026 compared to your previous assessment?
No, I would say it's important for us to work with, let's say, our plans that we have put in place. It's still quite, as we said it as well, it's a lot that needs to be gained from the M&A perspective. So no, we are not adjusting that based on the good cash flow right now. But organic needs to show now coming into Q1, Q2 to be able to continue with that M&A growth. So it's still a lot of things to do, actually, to be able to accelerate the M&A to be within our financial target metrics.
Yeah. I see. Thanks. That's clear. Yeah, I think that was all from me, actually. Thank you very much for answering my question.
Thank you.
The next question comes from Linus Allenton from Nordea. Please go ahead.
Hi, and good afternoon, Anders and Bengt. Congratulations on the report. Just some quick questions here from me. If we continue here on the ROCE from the past question here, it improved to 13.5 from 12.6. I mean, with the divestments and you're focused on disciplined M&A, what's the realistic time frame here to reach the 15% target here? Is this a 2026 or 2027 target, I guess, when the divestments are not in the balance sheets, the ROCE will have some upside as well?
Yeah, that's correct. We simulated that during the fall and said perhaps 1-1.5% of the ROCE will improve after the divestment. Still, it's pretty complex to make a very solid forecast. But we have said that this will take perhaps a year or two to reach that 15%. It depends a bit also on how the M&As are lining up during the different quarters since we get the balance sheet first and the profits later. But I still would say that it's not early this year, perhaps around early next year or late this year, depending on how things develop. Really to go into next year for this.
All right. All right. Thanks. Just continued on the supply chain orders here. You said that they are in a good momentum. Is this something that has kicked in now in January? We're at the end of last quarter. Can you see a significant improvement here, or how should we see this?
Yeah, but I'm not talking only about those three business units we mentioned had those problems. Overall, it's a good momentum, our ELM, our company-producing attachment as well, coming into from a very good second half of the year coming into this year. And we see the same activity. JR, producing different kind of doors as well to the transportation sector, having a great year and also continue to do that. And Hilltip, we talked about the U.S. facility in Europe, having a very good development. They are expanding their product assortment and making bigger salt-spreading equipment, not only to the pickup trucks, also to the tractor and to the bigger segments, the van segment. And Certus is having they are growing their service level agreement base with every order they are taking.
I think from that perspective, the mix of the companies and the good development there, that's what I when I see the talking about the good momentum in the business area.
Oh, okay. That's clear. Thanks. Just the question here when we look at Q1, how has the weather conditions been here so far for the winter-dependent companies like Hilltip and HeatWork? Are you seeing the weather here is more favorable compared to last year?
We've been talking a lot about that. It's actually that what we see is that the winter season is getting shorter. In the past, it could have been that they bought something, and then they see early December or early January, they needed more to be able to go through the entire winter. The trend is that they do not have that kind of second wave in the winter because what they bought should be enough for the winter. Now, Hilltip actually said, with the condition that we've had in full Europe, it's better than last year in that kind of the salt-spreading equipment. I think also HeatWork, another company dependent on especially the temperature, has also had a good start because of the cold climate, especially in the Nordic countries. Yeah.
In effect because the winter is, the feeling is it's going to be a longer period right now, at least.
Okay. Super. That was all for me. Thanks for taking my questions.
There are no more questions at this time. So I hand the conference back to the speakers for any written questions and closing comments.
Yes. We have one written question so far regarding share buybacks. And the question is if we have ever considered share buybacks instead of M&A as our stock is trading at the current low levels. And as always through all the years, we have always been prioritizing to acquire companies and believe that in the long run, that gives the shareholders a better return. So there are no discussions going on on that theme. That's a simple answer on that. Yeah. And I think that was the only written question. So any final remark?
Yeah. No, I think it's good. The message we would like to send is that, yes, we are continue to do or work with our strategic priorities. We are not done, for sure not. We are working on it. We're implementing it. And it's also going to be a long-term mindset shift for us as a group. We talk about the capital efficiency and everything around that. That's important to have for us for the long term. But again, we are happy with a solid quarter ending 2025. And now we are definitely looking forward to 2026. It's going to be exciting for the group to enter into this new year as well. So with that, I think thank you, everybody, for listening and good questions as well.
Thank you.