Year-end Report 2025

Summary by AI ^BETAClose X

Lifco AB reported strong financial results for the twelve months ending December 2025, with net sales increasing by 8.1% to SEK 28,251 million and EBITA growing by 6.8% to SEK 6,318 million, maintaining an EBITA margin of 22.4%. Profit before tax rose by 6.8% to SEK 4,756 million, and net profit increased by 9.6% to SEK 3,669 million, leading to earnings per share of SEK 8.00, a 10.0% increase. The company also saw a 10.7% rise in cash flow from operating activities to SEK 5,124 million and proposed a dividend of SEK 2.70 per share. During the year, Lifco consolidated 16 new businesses, contributing approximately SEK 2.2 billion in estimated annual net sales.

Disclaimer*

Reporting period January – December

Net sales increased 8.1 per cent to SEK 28,251 (26,137) million. Organically, net sales grew by 4.2 per cent.
EBITA increased 6.8 per cent to SEK 6,318 (5,917) million.
The EBITA margin was 22.4 (22.6) per cent.
Profit before tax grew 6.8 per cent to SEK 4,756 (4,454) million.
Net profit for the period grew 9.6 per cent to SEK 3,669 (3,349) million.
Earnings per share increased 10.0 per cent to SEK 8.00 (7.27).
Cash flow from operating activities increased 10.7 per cent to SEK 5,124 (4,630) million.
16 new businesses were consolidated during the year with estimated total annual net sales of about SEK 2.2 billion on the acquisition dates.
Dividend per share is proposed at SEK 2.70 (2.40) per share, corresponding to SEK 1,226.4 (1,090.1) million.

Reporting period October – December

Net sales increased 5.7 per cent to SEK 7,534 (7,125) million. Organically, net sales grew by 3.8 per cent.
EBITA increased 5.2 per cent to SEK 1,717 (1,633) million.
The EBITA margin was 22.8 (22.9) per cent.
Profit before tax grew 4.7 per cent to SEK 1,319 (1,260) million.
Net profit for the period grew 7.0 per cent to SEK 1,046 (978) million.
Cash flow from operating activities increased 22.8 per cent to SEK 1,986 (1,617) million.

Summary of financial performance

	TWELVE MONTHS			FOURTH QUARTER
SEK million	2025	2024	change	2025	2024	change
Net sales	28,251	26,137	8.1%	7,534	7,125	5.7%
EBITA	6,318	5,917	6.8%	1,717	1,633	5.2%
EBITA margin	22.4%	22.6%	-0.2	22.8%	22.9%	-0.1
Profit before tax	4,756	4,454	6.8%	1,319	1,260	4.7%
Net profit for the period	3,669	3,349	9.6%	1,046	978	7.0%
Earnings per share	8.00	7.27	10.0%	2.28	2.13	7.0%
Return on capital employed	20.5%	20.9%	-0.4	20.5%	20.9%	-0.4
Return on capital employed excl. goodwill	132%	128%	4	132%	128%	4

Comments from the CEO

Lifco’s primary goal is to increase its earnings every year through organic growth and acquisitions. Net sales increased 8.1 per cent in 2025 to SEK 28,251 (26,137) million through acquisitions and organic growth in every business area. Exchange rate effects had a negative impact on sales of 3.5 per cent. During the year, EBITA increased 6.8 per cent to SEK 6,318 (5,917) million and the EBITA margin amounted to 22.4 (22.6) per cent.

Sales increased 5.7 per cent to SEK 7,534 (7,125) million in the fourth quarter, driven by acquisitions and organic growth. Exchange rate effects had a negative impact on sales of 5.2 per cent during the quarter. EBITA increased 5.2 per cent to SEK 1,717 (1,633) million during the quarter and the EBITA margin was 22.8 (22.9) per cent.

Earnings per share increased 10.0 per cent in 2025 to SEK 8.00 (7.27) and cash flow from operating activities increased 10.7 per cent to SEK 5,124 (4,630) million.

During the year, Lifco consolidated 16 acquisitions, of which six in the Dental business area and ten in Systems Solutions. The acquisitions include three companies in Italy, the Netherlands and the UK, two in Germany and one each in Denmark, San Marino, Switzerland, Sweden and Austria. These companies are highly specialised and market leaders in their respective niches. The acquisitions had a net positive impact on Lifco’s results and financial position during the year.

Lifco has a loan framework of SEK 8 billion in its MTN programme and bonds outstanding totalling SEK 4,750 million. Lifco’s financial position remains solid and interest-bearing net debt amounted to 1.1 times EBITDA at 31 December 2025, which is well in line with our target of interest-bearing net debt of a maximum of three times EBITDA and means that Lifco possesses the financial scope to make additional acquisitions.

Per Waldemarson
President and CEO

GROUP PERFORMANCE IN JANUARY – DECEMBER
Net sales increased 8.1 per cent to SEK 28,251 (26,137) million. Acquisitions contributed 7.4 per cent and organic growth amounted to 4.2 per cent. Exchange rate effects had a negative impact on sales of 3.5 per cent. All three business areas contributed to the organic growth.

The Italian companies Nobil Bio Ricerche, Toppy and UR FOG, the Dutch companies Citodent Imaging, Klemko Group and HedoN Electronic Developments, the UK companies DB Orthodontics, Heavy Duty Parts and MaxiMover, the German companies Fraga Dental and HEGUtechnik, the Swiss company Arnold Deppeler, the Swedish company Gestenco International, the Sammarinese company Italgears, the Danish company R&T Stainless and the Austrian company Stöffl were consolidated during the year. These acquisitions had estimated total annual net sales of about SEK 2.2 billion on the acquisition dates.

EBITA increased 6.8 per cent to SEK 6,318 (5,917) million, driven by acquisitions, and the EBITA margin amounted to 22.4 (22.6) per cent. Exchange rate changes had a negative impact on EBITA of 3.1 per cent.

During the year, 47 (46) per cent of EBITA was generated in EUR, 17 (18) per cent in SEK, 14 (14) per cent in GBP, 9 (11) per cent in NOK, 6 (5) per cent in DKK, 2 (3) per cent in USD and 4 (3) per cent in other currencies.

Net financial items improved to SEK -414 (-442) million.

Profit before tax grew 6.8 per cent to SEK 4,756 (4,454) million. Net profit for the period grew 9.6 per cent to SEK 3,669 (3,349) million.

Average capital employed excluding goodwill increased SEK 138 million during the year to
SEK 4,770 million at 31 December 2025, compared with SEK 4,632 million at 31 December 2024. EBITA in relation to average capital employed excluding goodwill was at 132 per cent at year-end and increased by 4 percentage points during the year.

The Group’s net debt increased SEK 454 million from 31 December 2024 to SEK 12,048 million at 31 December 2025, of which liabilities related to put/call options for acquisitions increased SEK 294 million to SEK 2,930 million. Interest-bearing net debt increased during the year by SEK 51 million to SEK 7,801 million at 31 December 2025.

On 31 December 2025, Lifco had bonds outstanding totalling SEK 4,750 million. In addition to bonds outstanding, Lifco has standard short-term credit facilities.

The net debt/equity ratio at 31 December 2025 was 0.6 and was unchanged compared with 31 December 2024. Net debt in relation to EBITDA was 1.7 (1.8) and interest-bearing net debt in relation to EBITDA was 1.1 (1.2) times at 31 December 2025. At the end of 2025, 32 (37) per cent of the Group’s interest-bearing liabilities were denominated in EUR.

Cash flow from operating activities increased 10.7 per cent to SEK 5,124 (4,630) million during the year. Cash flow from investing activities was SEK -3,833 (-3,338) million, which was mainly attributable to acquisitions.

GROUP PERFORMANCE IN THE FOURTH QUARTER
Net sales increased 5.7 per cent to SEK 7,534 (7,125) million in the fourth quarter. Acquisitions contributed 7.2 per cent and organic growth amounted to 3.8 per cent. Exchange rate changes had a negative impact of 5.2 per cent. The increase in sales in the quarter was due to acquisitions in Systems Solutions and organic growth in Demolition & Tools and Systems Solutions.

EBITA increased 5.2 per cent to SEK 1,717 (1,633) million, driven primarily by acquisitions. Exchange rate changes had a negative impact on EBITA of 4.6 per cent. The EBITA margin was 22.8 (22.9) per cent.

During the fourth quarter, 49 (48) per cent of EBITA was generated in EUR, 16 (17) per cent in SEK, 15 (14) per cent in GBP, 9 (9) per cent in NOK, 6 (7) per cent in DKK, 0 (2) per cent in USD and 4 (3) per cent in other currencies.

Net financial items were SEK -97 (-90) million.

Profit before tax grew 4.7 per cent to SEK 1,319 (1,260) million. Net profit for the period grew 7.0 per cent to SEK 1,046 (978) million.

Average capital employed excluding goodwill declined by SEK 2 million to SEK 4,770 million at 31 December 2025, compared with SEK 4,772 million at 30 September 2025. EBITA in relation to average capital employed excluding goodwill increased by 1 percentage point from 30 September 2025 and amounted to 132 per cent.

From 30 September 2025, the Group’s net debt decreased SEK 1,216 million to SEK 12,048 million at the end of the quarter. Interest-bearing net debt fell during the quarter by SEK 1,348 million to SEK 7,801 million.

Cash flow from operating activities increased 22.8 per cent to SEK 1,986 (1,617) million due to higher operating profit and reduced capital tied up. Cash flow from investing activities was SEK -590 (-1,499) million, which was mainly attributable to acquisitions.

FINANCIAL PERFORMANCE – BUSINESS AREAS

Dental

	TWELVE MONTHS			FOURTH QUARTER
SEK million	2025	2024	change	2025	2024	change
Net sales	6,331	6,306	0.4%	1,594	1,636	-2.6%
EBITA	1,331	1,307	1.8%	318	315	1.0%
EBITA margin	21.0%	20.7%	0.3	20.0%	19.3%	0.7

The companies in Lifco’s Dental business area are leading suppliers of consumables, equipment and technical service to dentists across Europe, and the business area also has operations in the US. Lifco sells dental technology to dentists in the Nordic countries and Germany, and develops and sells medical record systems in Denmark, Sweden and Germany. The business area also includes a number of manufacturers which produce, inter alia, fitting products for dentures, disinfectants, saliva ejectors, bite registration and dental impression materials, bonding agents and other consumables that are sold to dentists through distributors around the world.

Net sales in Dental increased 0.4 per cent to SEK 6,331 (6,306) million during the year as a result of acquisitions and organic growth.

EBITA increased 1.8 per cent to SEK 1,331 (1,307) million during the year and the EBITA margin increased to 21.0 (20.7) per cent. EBITA was positively impacted by acquisitions.

During the year, Swiss Arnold Deppeler, British DB Orthodontics, German Fraga Dental, Swedish Gestenco International, Dutch Citodent Imaging and Italian Nobil Bio Ricerche were consolidated.

Demolition & Tools

	TWELVE MONTHS			FOURTH QUARTER
SEK million	2025	2024	change	2025	2024	change
Net sales	6,760	6,444	4.9%	1,679	1,675	0.3%
EBITA	1,681	1,542	9.1%	398	411	-3.1%
EBITA margin	24.9%	23.9%	1.0	23.7%	24.6%	-0.9

The Demolition & Tools business area develops, manufactures and sells equipment for the infrastructure, demolition and construction industries. The Group is the world’s leading supplier in the markets for demolition robots and crane attachments. The Group is also one of the leading global suppliers of forest machinery and excavator attachments. The business area’s EBITA margin might fluctuate between quarters due to single, major special orders and changes to the product mix.

Net sales increased by 4.9 per cent during the year to SEK 6,760 (6,444) million as the result of organic growth and acquisitions.

EBITA increased by 9.1 per cent during the year to SEK 1,681 (1,542) million, and the EBITA margin expanded by 1.0 percentage point to 24.9 (23.9) per cent, positively impacted by organic growth and acquisitions.

Systems Solutions

	TWELVE MONTHS			FOURTH QUARTER
SEK million	2025	2024	change	2025	2024	change
Net sales	15,160	13,387	13.2%	4,261	3,815	11.7%
EBITA	3,483	3,230	7.8%	1,047	955	9.6%
EBITA margin	23.0%	24.1%	-1.1	24.6%	25.0%	-0.4

Through its operating units, the Systems Solutions business area operates in industries offering systems solutions. Systems Solutions is divided into five divisions: Contract Manufacturing, Environmental Technology, Infrastructure Products, Special Products and Transportation Products.

Net sales in Systems Solutions increased 13.2 per cent to SEK 15,160 (13,387) million during the year due to acquisitions and organic growth. EBITA increased by 7.8 per cent to SEK 3,483 (3,230) million and the EBITA margin declined by 1.1 percentage points to 23.0 (24.1) per cent due to negative organic growth in parts of Systems Solutions.

Contract Manufacturing reported strong organic sales growth for the year with weaker profitability. The German company HEGUtechnik was consolidated during the year.

Environmental Technology reported a weak increase in sales in 2025 with slightly weaker profitability.

Infrastructure Products reported a strong sales trend and improved profitability during the year, primarily as a result of acquisitions. Sammarinese Italgears, Danish R&T Stainless, Dutch Klemko Group and Italian UR FOG were consolidated during the year.

Special Products saw good sales growth during the year due to acquisitions. The weak market situation during the year led to negative organic growth and reduced profitability. The Dutch company HedoN Electronic Developments and the Austrian company Stöffl were consolidated during the year.

Transportation Products saw good sales growth during the year with stable profitability as a result of acquisitions. The market situation was weak during the year, which resulted in reduced organic sales and EBITA. The UK companies Heavy Duty Parts and MaxiMover and the Italian company Toppy were consolidated during the year.

ACQUISITIONS

Lifco consolidated the following acquisitions during the year:

Consolidated from month	Acquisitions	Business area	Operations	Net sales	Country	Number of employees
March	Arnold Deppeler	Dental	Manufactures dental instruments	CHF 3.3m	Switzerland	18
March	Heavy Duty Parts	Systems Solutions	Specialist supplier of parts for coaches	GBP 11.7m	United Kingdom	25
April	Fraga Dental	Dental	Sells consumables to dentists in Germany	EUR 2.5m	Germany	7
April	Gestenco International	Dental	Operates within the orthodontic sector globally	SEK 19m	Sweden	7
April	Italgears	Systems Solutions	Niche manufacturer of traction systems for elevators	EUR 13.8m	San Marino	17
April	R&T Stainless	Systems Solutions	Supplies equipment and components to builders of public playgrounds	DKK 114m	Denmark	12
June	Klemko Group	Systems Solutions	Develops and sells electrical and mechanical installation materials and lighting products under own brands to installers and OEMs	EUR 19.1m	Netherlands	41
July	HedoN Electronic Developments	Systems Solutions	Designs and supplies high precision electronic products, especially for industrial inductive heating applications	EUR 7.4m	Netherlands	18
July	Toppy	Systems Solutions	Develops and sells pallet changing systems for industries including the pharmaceutical industry	EUR 17m	Italy	50
July	UR FOG	Systems Solutions	Designs and produces anti-intrusion fogging systems, mainly to retail stores and other commercial applications	EUR 7.8m	Italy	39
August	Stöffl	Systems Solutions	Supplies vibration control components and sealing and edge protection profiles	EUR 14.6m	Austria	15
August	MaxiMover	Systems Solutions	Designs and manufactures low floor van conversions up to 3.5 tonnes with customised solutions	GBP 39m¹	United Kingdom	47
September	Citodent Imaging	Dental	Develops and sells software for managing X-ray images and diagnostic imaging to dentists	EUR 1.2m	Netherlands	8
October	Nobil Bio Ricerche	Dental	Customises implant surfaces for global dental manufacturers	EUR 4.1m	Italy	21
November	HEGUtechnik	Systems Solutions	Contract manufacturer of electronic components for automation applications in harsh industrial environments	EUR 10.3m	Germany	83
December	DB Orthodontics	Dental	Produces and sells orthodontics material to dental professionals globally	8.9 MGBP²	United Kingdom	54
¹ The financial year ending in May 2025. ² The financial year ending in October 2025.

Further information on the acquisitions is provided on page 17. The figures for net sales and number of employees refer to estimated annual net sales and the number of employees at the acquisition date.

Taken together, the acquisitions had a positive impact on Lifco’s results and financial position in 2025.

OTHER INFORMATION

Employees
The average number of employees calculated as full-time equivalents was 7,619 (7,115) during the year. At the end of the year, the number of employees calculated as full-time equivalents was 7,814 (7,379). Acquisitions added about 460 employees.

Events after the end of the reporting period
Consolidation of the German company Karl Kaps is expected to take place in the first quarter of 2026 in the Dental business area. Karl Kaps is a niche manufacturer of medical and dental microscopes. Karl Kaps reported net sales of approximately EUR 10.1 million in 2024 and has 33 employees. The acquisition, which comprised all of the shares, was announced on 19 December 2025.

Proposed dividend
The Board of Directors and Chief Executive Officer propose that the Annual General Meeting authorise the payment of a dividend of SEK 2.70 (2.40) per share for 2025, representing a total distribution of SEK 1,226.4 million (1,090.1). This is equal to 33.8 (33.0) per cent of the net profit for the year attributable to shareholders of Lifco AB. The proposed record date for the dividend is 30 April 2026. Euroclear Sweden expects to be able to distribute the dividend to the shareholders on 6 May 2026, subject to the resolution of the Annual General Meeting.

Related party transactions
During the period, customary transactions with related parties have occurred. All transactions have been carried out on market terms.

Risks and uncertainties
The risk factors which have the biggest impact for Lifco are global macroeconomic factors, the competitive situation, structural changes in the market and general level of economic activity. Lifco is also exposed to financial risks, including currency risks, interest rate risks, credit and counterparty risks. Lifco is working actively to monitor and continually evaluate sustainability-related risks and their impact on the Group’s operations and earnings. The Group has established a governance structure that involves Group management and the Board and works to continually improve the company’s sustainability-related activities and minimise related risks. As part of this governance, Group management evaluates the compliance of, for example, the Code of Conduct, occupational injuries, IT security and legal disputes, for every subsidiary on a quarterly basis. The risks and sensitivity analysis are described in detail in Lifco's Annual and Sustainability Report for 2024 and are unchanged since this report.

The Parent Company is affected by the above risks and uncertainties in its capacity as owner of the subsidiary companies.

Accounting policies
The Group’s year-end report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. In respect of the Parent Company, the report has been prepared in accordance with the Annual Accounts Act and Recommendation RFR 2 Financial

Reporting for Legal Entities of the Swedish Financial Reporting Board. The accounting policies have been applied in accordance with those which are presented in the 2024 Annual Report and should be read in conjunction with these.

In cases where Lifco does not control 100 per cent of the shares of a subsidiary, but there are combined put/call options, Lifco consolidates 100 per cent of the subsidiary and recognises a financial liability for the put/call option. Changes in liabilities are recognised in equity and no non-controlling interests are recognised. Gains related to minority shares that are subject to put/call options amounted to SEK 319 (249) million for the 2025 financial year.

The total figures in the tables and calculations do not always add up due to rounding differences. The aim is for each row to correspond to its original source and as such, rounding differences can affect the total figures.

This report has not been examined by the company’s auditors.

DECLARATION OF THE BOARD OF DIRECTORS

The Board of Directors and Chief Executive Officer warrant and declare that this year-end report and report for the fourth quarter gives a true and fair view of the Parent Company’s and Group’s operations, financial positions and results, and that it describes significant risks and uncertainties faced by the Parent Company and the companies included in the Group. The contents of the year-end report were resolved on 29 January 2026.

Enköping, 29 January 2026

Carl Bennet Chairman of the Board	Ulrika Dellby Director	Dan Frohm Vice Chairman
Erik Gabrielson Director	Ulf Grunander Director	Anna Hallberg Director
Anneli Broström Director, employee representative	Tobias Nordin Director, employee representative	Caroline af Ugglas Director
Axel Wachtmeister Director	Per Waldemarson President and CEO, Director

FINANCIAL CALENDAR
Annual Report 2025 the week starting 30 March 2026.
Report for the first quarter 24 April 2026.
Report for the second quarter 14 July 2026.
Report for the third quarter 23 October 2026.
Year-end report and report for the fourth quarter 29 January 2027.
Annual Report 2026 the week starting 29 March 2027.

ANNUAL GENERAL MEETING 2026
The Annual General Meeting of Lifco AB will be held on Friday 24 April 2026, at 11 a.m. CEST, at Bonnierhuset Konferens, Torsgatan 21, Stockholm. Shareholders wishing to raise an issue for discussion at the AGM may do so by submitting their proposal to the Chairman of Lifco by e-mail: ir@lifco.se or by post to: Lifco AB, Attn:Bolagsstämmoärenden, SE-745 85 Enköping, Sweden. To ensure their inclusion in the notice and thus on the agenda for the AGM, proposals must be received by the Company no later than Friday 6 March 2026.

Tuesday 28 April was announced as the date for the Annual General Meeting in the report for the third quarter of 2025.

FURTHER INFORMATION
Media and investor relations: Åse Lindskog, ir@lifco.se, telephone: +46 730 24 48 72.

ONLINE PRESENTATION
An online presentation with Per Waldemarson, CEO, and Therése Hoffman, CFO, will take place on Friday, 30 January 2026 at 9:00 a.m. CET. The presentation can be listened to online or by calling in to the telephone conference. Questions can be asked at the telephone conference.

Time: Friday, 30 January at 9:00 a.m. CET

Link to the presentation: https://lifco.events.inderes.com/q4-report-2025

If you wish to participate at the telephone conference, you can register using the link below. Following registration, you will receive a telephone number and a conference ID to log in to the conference.

Link to register for the telephone conference: https://conference.inderes.com/teleconference/?id=50051765

CONDENSED CONSOLIDATED INCOME STATEMENT

	TWELVE MONTHS			FOURTH QUARTER
SEK million	2025	2024	change	2025	2024	change
Net sales	28,251	26,137	8.1%	7,534	7,125	5.7%
Cost of goods sold	-15,907	-14,548	9.3%	-4,239	-3,947	7.4%
Gross profit	12,344	11,589	6.5%	3,295	3,178	3.7%
Selling expenses	-3,345	-3,014	11.0%	-1,019	-909	12.2%
Administrative expenses	-3,673	-3,468	5.9%	-852	-844	0.9%
Development costs	-253	-254	-0.5%	-68	-82	-17.3%
Other income and expenses	97	44	121%	60	7	747%
Operating profit	5,170	4,896	5.6%	1,416	1,350	4.9%
Net financial items	-414	-442	-6.3%	-97	-90	7.9%
Profit before tax	4,756	4,454	6.8%	1,319	1,260	4.7%
Tax	-1,087	-1,105	-1.6%	-274	-282	-3.1%
Net profit for the period	3,669	3,349	9.6%	1,046	978	7.0%

Profit attributable to:
Parent Company shareholders	3,633	3,301	10.1%	1,038	968	7.1%
Non-controlling interests	36	49	-25.7%	8	9	-12.6%
Earnings per share before and after dilution for the period, attributable to Parent Company shareholders	8.00	7.27	10.0%	2.28	2.13	7.0%
EBITA	6,318	5,917	6.8%	1,717	1,633	5.2%
Depreciation of tangible assets	731	676	8.3%	203	157	28.7%
Amortisation of intangible assets	24	25	-5.1%	5	7	-30.8%
Amortisation of intangible assets arising from acquisitions	1,102	983	12.2%	294	267	10.1%

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	TWELVE MONTHS			FOURTH QUARTER
SEK million	2025	2024	change	2025	2024	change
Net profit for the period	3,669	3,349	9.6%	1,046	978	7.0%
Other comprehensive income
Items which can later be reclassified to profit or loss:
Hedge of net investment	186	-83	-323%	48	-20	-334%
Translation differences	-1,676	767	-318%	-483	395	-222%
Tax pertaining to hedge of net investment	-41	20	-307%	-10	4	-320%
Total comprehensive income for the period	2,139	4,053	-47.2%	601	1,356	-55.7%

Comprehensive income attributable to:
Parent Company shareholders	2,113	4,002	-47.2%	596	1,345	-55.7%
Non-controlling interests	26	50	-49.4%	4	12	-63.3%
	2,139	4,053	-47.2%	601	1,356	-55.7%

SEGMENT OVERVIEW

Lifco is organised into three operating segments: Dental, Demolition & Tools and Systems Solutions. Segment reporting is consistent with the internal reports submitted to the most senior executive, the CEO of Lifco Group. The Dental and Demolition & Tools operations have similar economic characteristics and are similar in terms of the nature of their products and services, production process and customer categories. Systems Solutions comprises a large number of separate companies which differ individually from each other in terms of the nature of their products and production processes, although the nature of their business activities is similar and they have similar economic characteristics. Systems Solutions has a business area head who is directly accountable to the CEO for the operations, financial performance, forecasts and plans.

Group-wide functions mainly consist of costs attributable to the Board, CEO and other senior executives, audit costs and corporate costs for preparing information for shareholders, maintaining the stock exchange listing and costs related to the annual report.

The results of the operating segments are based on EBITA. The Group’s financial income and expenses and tax are managed at Group level and are therefore not allocated to each segment. Assets and liabilities are not broken down by segment, as no such amount is regularly reported to the CEO.

NET SALES TO EXTERNAL CUSTOMERS
No sales are made between the segments.

	TWELVE MONTHS			FOURTH QUARTER
SEK million	2025	2024	change	2025	2024	change
Dental	6,331	6,306	0.4%	1,594	1,636	-2.6%
Demolition & Tools	6,760	6,444	4.9%	1,679	1,675	0.3%
Systems Solutions	15,160	13,387	13.2%	4,261	3,815	11.7%
Group	28,251	26,137	8.1%	7,534	7,125	5.7%

Net sales by significant type of income:

	TWELVE MONTHS			FOURTH QUARTER
SEK million	2025	2024	change	2025	2024	change
Dental Products	6,331	6,306	0.4%	1,594	1,636	-2.6%
Machinery and Tools	6,760	6,444	4.9%	1,679	1,675	0.3%
Infrastructure Products	2,152	1,777	21.1%	632	461	37.2%
Contract Manufacturing	3,525	2,878	22.5%	965	951	1.5%
Environmental Technology	3,475	3,414	1.8%	961	956	0.5%
Transportation Products	3,822	3,374	13.3%	1,135	882	28.7%
Special Products	2,186	1,943	12.5%	567	565	0.5%
Group	28,251	26,137	8.1%	7,534	7,125	5.7%

EBITA
A breakdown of results by segment is made up to and including EBITA. EBITA is reconciled to profit before tax in accordance with the following table:

	TWELVE MONTHS			FOURTH QUARTER
SEK million	2025	2024	change	2025	2024	change
Dental	1,331	1,307	1.8%	318	315	1.0%
Demolition & Tools	1,681	1,542	9.1%	398	411	-3.1%
Systems Solutions	3,483	3,230	7.8%	1,047	955	9.6%
Central Group functions	-178	-162	9.9%	-46	-49	-4.7%
EBITA before acquisition costs	6,318	5,917	6.8%	1,717	1,633	5.2%
Acquisition costs	-45	-38	18.6%	-8	-17	-53.7%
EBITA	6,273	5,879	6.7%	1,710	1,616	5.8%
Amortisation of intangible assets arising from acquisitions	-1,102	-983	12.2%	-294	-267	10.1%
Net financial items	-414	-442	-6.3%	-97	-90	7.9%
Profit before tax	4,756	4,454	6.8%	1,319	1,260	4.7%

CONDENSED CONSOLIDATED BALANCE SHEET

SEK million	31 Dec 2025	31 Dec 2024
ASSETS
Intangible assets	26,817	25,400
Tangible assets	3,150	3,035
Financial assets	467	454
Inventories	4,314	4,256
Accounts receivable - trade	3,434	3,334
Current receivables	1,046	894
Cash and cash equivalents	1,878	1,517
TOTAL ASSETS	41,106	38,889

EQUITY AND LIABILITIES
Equity	19,277	18,409
Non-current interest-bearing liabilities incl. pension provisions	5,378	3,657
Other non-current liabilities and provisions	5,663	5,403
Current interest-bearing liabilities	5,617	6,817
Accounts payable - trade	1,829	1,671
Other current liabilities	3,342	2,932
TOTAL EQUITY AND LIABILITIES	41,106	38,889

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Attributable to Parent Company shareholders

SEK million	31 Dec 2025	31 Dec 2024
Opening equity	18,257	15,212
Comprehensive income for the period	2,113	4,002
Change in value of put/call options attributable to non-controlling interests	-143	-3
Dividend	-1,090	-954
Closing equity	19,137	18,257

Equity attributable to:
Parent Company shareholders	19,137	18,257
Non-controlling interests	140	152
	19,277	18,409

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

	TWELVE MONTHS		FOURTH QUARTER
SEK million	2025	2024	2025	2024
Operating activities
Operating profit	5,170	4,896	1,416	1,350
Reversal of depreciation and amortisation	1,858	1,684	501	431
Other non-cash items	4	-31	-86	-118
Interest and financial items, net	-414	-442	-97	-90
Tax paid	-1,580	-1,571	-341	-346
Cash flow before changes in working capital	5,037	4,535	1,393	1,226

Changes in working capital
Inventories	-29	53	331	247
Current receivables	-146	165	304	220
Current liabilities	263	-124	-42	-77
Cash flow from operating activities	5,124	4,630	1,986	1,617
Business acquisitions and sales, net	-3,360	-2,891	-450	-1,426
Net investment in tangible assets	-432	-409	-123	-61
Net investment in intangible assets	-40	-38	-16	-12
Cash flow from investing activities	-3,833	-3,338	-590	-1,499

Change interest-bearing liabilities	837	137	-816	-149
Repayments of lease liabilities	-338	-310	-92	-66
Change in non-current receivables/liabilities	-9	-3	-14	0
Dividends paid	-1,090	-954	-	-
Dividends paid to non-controlling interests	-187	-275	-19	-37
Cash flow from financing activities	-788	-1,404	-941	-253
Cash flow for the period	504	-112	455	-135
Cash and cash equivalents at beginning of period	1,517	1,591	1,467	1,615
Translation differences	-143	39	-45	36
Cash and cash equivalents at end of period	1,878	1,517	1,878	1,517

RESTATED CONSOLIDATED CASH FLOW 2024
At the start of 2024, reporting procedures concerning consolidated cash flow were changed and certain unrealised exchange rate differences were entered on the incorrect row in cash flow in the 2024 Annual Report and in the interim reports. This has been corrected in the table below with these unrealised exchange rate differences now being transferred from the line item “Other non-cash items” to the line item “Translation differences item”. Items with the footnote 1 have been adjusted. Adjustments have been made retroactively for all reporting periods.

Restated cash flow
SEK million	2024	Q4 2024	Q3 2024	Q2 2024	Q1 2024
Operating profit	4,896	1,350	1,142	1,361	1,044
Reversal of depreciation and amortisation	1,684	431	444	411	397
Other non-cash items¹	-31	-118	8	32	46
Interest and financial items, net	-442	-90	-122	-127	-104
Tax paid	-1,571	-346	-432	-367	-426
Cash flow before changes in working capital¹	4,535	1,226	1,040	1,310	958

Cash flow from operating activities¹	4,630	1,617	1,197	1,061	754

Cash flow from investing activities	-3,338	-1,499	-609	-1,045	-186

Cash flow from financing activities	-1,404	-253	-653	143	-641

Cash flow for the period¹	-112	-135	-65	159	-72
Cash and cash equivalents at beginning of period	1,591	1,615	1,707	1,560	1,591
Translation differences¹	39	36	-27	-13	42
Cash and cash equivalents at end of period	1,517	1,517	1,615	1,707	1,560

¹Corrected items.

ACQUISITIONS IN 2025
16 new businesses were consolidated in 2025. The operations that were consolidated comprise Italian Nobil Bio Ricerche, Toppy and UR FOG, Dutch Citodent Imaging, Klemko Group and HedoN Electronic Developments, British DB Orthodontics, Heavy Duty Parts and MaxiMover, German Fraga Dental and HEGUtechnik, Swiss Arnold Deppeler, Swedish Gestenco International, Sammarinese Italgears, Danish R&T Stainless and Austrian Stöffl.

The purchase price allocation includes all acquisitions consolidated in 2025. All acquisitions have been fully consolidated.

Acquisition-related expenses of SEK 45 million are included in administrative expenses in the consolidated income statement for 2025. Since the respective consolidation dates, the acquired companies have added SEK 899 million to consolidated net sales and SEK 268 million to EBITA. If the businesses had been consolidated as of 1 January 2025, consolidated net sales for the year would have increased by a further SEK 1,155 million and EBITA would have increased by a further SEK 329 million.

Acquired net assets

Net assets, SEK million	Carrying amount	Value adjustment	Fair value
Intangible assets	4	2,358	2,362
Tangible assets	94	-	94
Inventories, accounts receivable and other receivables	629	-9	619
Accounts payable and other liabilities¹	-452	-619	-1,070
Cash and cash equivalents	297	-	297
Net assets	573	1,730	2,302
Goodwill	-	1,839	1,839
Total net assets	573	3,569	4,141

Effect on cash flow, SEK million
Consideration			4,141
Considerations not paid (put/call options)			-596
Cash and cash equivalents in acquired companies			-297
Consideration paid relating to acquisitions from previous years			112
Total cash flow effect			3,360
¹ Of which SEK 69 million refers to external interest-bearing liabilities.

FINANCIAL INSTRUMENTS

SEK million	31 Dec 2025	31 Dec 2024
Financial assets at amortised cost
Accounts receivable - trade	3,434	3,334
Other non-current financial receivables	44	30
Cash and cash equivalents	1,878	1,517
Total	5,356	4,881
Liabilities at fair value
Other liabilities¹	2,930	2,636
Financial liabilities at amortised cost
Interest-bearing borrowings	10,964	10,357
Accounts payable - trade	1,829	1,671
Total	15,723	14,663

¹ Other liabilities classified as financial instruments refer to combined put/call options related to
non-controlling interests.

The carrying amount is the same as the fair value. The fair value of short-term borrowings is equal to the carrying amount, as the discount effect is insignificant.

Financial instruments at fair value are classified into different levels depending on how fair value is determined. All financial instruments at fair value in the Lifco Group have been classified as level 3, i.e. non-observable inputs. The put/call options are valued on the basis of a multiple valuation whereby a relevant multiple according to the terms of the contracts is applied to an estimated future performance measure. The uncertainty in the valuation can be found in the assessment of future profitability until the maturity date. Revaluation takes place on every balance sheet date.

KEY PERFORMANCE INDICATORS

	31 DEC 2025	31 DEC 2024
Net sales, SEK million	28,251	26,137
Change in net sales, %	8.1	6.9
EBITA, SEK million	6,318	5,917
EBITA margin, %	22.4	22.6
EBITDA, SEK million	7,073	6,618
EBITDA margin, %	25.0	25.3
Capital employed, SEK million	30,764	28,372
Capital employed excl. goodwill and other intangible assets, SEK million	4,770	4,632
Return on capital employed, %	20.5	20.9
Return on capital employed excl. goodwill, %	132	128
Return on equity, %	19.8	19.5
Net debt, SEK million	12,048	11,594
Net debt/equity ratio, times	0.6	0.6
Net debt/EBITDA, times	1.7	1.8
Interest-bearing net debt, SEK million	7,801	7,750
Interest-bearing net debt/EBITDA	1.1	1.2
Equity/assets ratio, %	46.9	47.3
Number of shares, thousands	454,216	454,216
Average number of employees, full-time equivalents	7,619	7,115

CONDENSED PARENT COMPANY INCOME STATEMENT

	TWELVE MONTHS		FOURTH QUARTER
SEK million	2025	2024	2025	2024
Administrative expenses	-154	-128	-43	-26
Other operating income¹	88	77	89	76
Operating profit	-67	-51	46	50
Net financial items²	2,408	2,050	102	69
Profit after financial items	2,341	1,999	148	119
Appropriations	178	207	178	207
Tax	-9	5	-26	-33
Net profit for the period	2,510	2,210	300	293

¹ Other operating income includes invoicing of Group-wide services.
² Net financial items include SEK 2,068 (1,891) million in dividends received during the twelve-month period.

CONDENSED PARENT COMPANY BALANCE SHEET

SEK million	31 Dec 2025	31 Dec 2024
ASSETS
Financial assets	8,968	9,520
Current receivables	14,949	12,525
Cash and cash equivalents	805	539
TOTAL ASSETS	24,722	22,584

EQUITY AND LIABILITIES
Equity	7,435	6,015
Untaxed reserves	-	4
Provisions	17	6
Non-current interest-bearing liabilities	4,329	2,585
Current interest-bearing liabilities	5,274	6,487
Current non-interest-bearing liabilities	7,666	7,487
TOTAL EQUITY AND LIABILITIES	24,722	22,584

DEFINITIONS

Return on equity	Net profit for the period divided by average equity.
Return on capital employed	EBITA before acquisition costs divided by capital employed.
Return on capital employed excluding goodwill and other intangible assets	EBITA before acquisition costs divided by capital employed excluding goodwill and other intangible assets.
EBITA	EBITA is a measure which Lifco considers relevant for investors who wish to understand the earnings generated after investments in tangible and intangible assets requiring reinvestment but before investments in intangible assets attributable to acquisitions. Lifco defines earnings before interest, tax and amortisation (EBITA) as operating profit before amortisation and impairment of intangible assets arising from acquisitions excluding acquisition costs.
EBITA margin	EBITA divided by net sales.
EBITDA	EBITDA is a measure which Lifco considers relevant for investors who wish to understand the earnings generated before investments in non-current assets. Lifco defines earnings before interest, tax, depreciation and amortisation (EBITDA) as operating profit before depreciation, amortisation and impairment of tangible and intangible assets excluding acquisition costs.
EBITDA margin	EBITDA divided by net sales.
Net debt/equity ratio	Net debt divided by equity.
Net debt	Lifco uses the alternative KPI net debt. Lifco considers that this is a useful additional KPI which allows users of the financial statements to assess the Group’s ability to pay dividends, make strategic investments and meet its financial obligations. Lifco defines the KPI as follows: current and non-current liabilities to credit institutions, bonds, interest-bearing pension provisions, liabilities related to put/call options relating to acquisitions as well as lease liabilities less cash and cash equivalents.

Earnings per share	Profit after tax attributable to Parent Company shareholders, divided by the average number of shares outstanding.

Interest-bearing net debt	Lifco uses the alternative KPI interest-bearing net debt. Lifco considers that this is a useful additional KPI which allows users of the financial statements to assess the Group’s ability to pay dividends, make strategic investments and meet its financial obligations. Lifco defines the KPI as follows: current and non-current liabilities to credit institutions, bonds as well as interest-bearing pension provisions less cash and cash equivalents.

Equity/assets ratio	Equity divided by total assets (balance sheet total).
Capital employed	Capital employed is a measure which Lifco uses for calculating the return on capital employed and for measuring how efficient the Group is. Lifco considers that capital employed is useful in helping users of the financial statements to understand how the Group finances itself. Lifco defines capital employed as total assets less cash and cash equivalents, interest-bearing pension provisions and non-interest-bearing liabilities with the exception of liabilities related to put/call options relating to acquisitions, calculated as the average of the last four quarters.

Capital employed excluding goodwill and other intangible assets	Capital employed excluding goodwill and other intangible assets is a measure which Lifco uses for calculating the return on capital employed and for measuring how efficient the Group is. Lifco considers that capital employed excluding goodwill and other intangible assets is useful in helping users of the financial statements to understand the impact of goodwill and other intangible assets on that capital which requires a return. Lifco defines capital employed excluding goodwill and other intangible assets as total assets less cash and cash equivalents, interest-bearing pension provisions, non-interest-bearing liabilities with the exception of liabilities related to put/call options relating to acquisitions, goodwill and other intangible assets, calculated as the average of the last four quarters.

RECONCILIATION OF ALTERNATIVE KEY PERFORMANCE INDICATORS
The year-end report presents alternative key performance indicators for assessing the Group’s performance that are considered material for analysis and understanding of the Group’s earnings and financial position. The primary alternative KPIs presented in this year-end report are EBITA, EBITDA, net debt and capital employed. Definitions of the alternative KPIs are presented on pages 2021.

EBITA compared with financial statements in accordance with IFRS

SEK million	TWELVE MONTHS 2025	TWELVE MONTHS 2024
	5,170
Operating profit	5,170	4,896
Amortisation of intangible assets arising from acquisitions	1,102	983
EBITA	6,273	5,879
Acquisition costs	45	38
EBITA before acquisition costs	6,318	5,917

EBITDA compared with financial statements in accordance with IFRS

SEK million	TWELVE MONTHS 2025	TWELVE MONTHS 2024
	5,170
Operating profit	5,170	4,896
Depreciation of tangible assets	731	676
Amortisation of intangible assets	24	25
Amortisation of intangible assets arising from acquisitions	1,102	983
EBITDA	7,028	6,580
Acquisition costs	45	38
EBITDA before acquisition costs	7,073	6,618

Net debt compared with financial statements in accordance with IFRS

SEK million	31 Dec 2025	31 Dec 2024
Non-current interest-bearing liabilities including pension provisions	4,389	2,762
Current interest-bearing liabilities	5,290	6,505
Cash and cash equivalents	-1,878	-1,517
Interest-bearing net debt	7,801	7,750
Put/call options	2,930	2,636
Lease liability	1,317	1,207
Net debt	12,048	11,594

Capital employed and capital employed excluding goodwill and other intangible assets compared with financial statements in accordance with IFRS

SEK million	31 Dec 2025	30 Sep 2025	30 Jun 2025	31 Mar 2025
Total assets	41,106	41,789	40,039	37,751
Cash and cash equivalents	-1,878	-1,467	-1,210	-1,208
Interest-bearing pension provisions	-31	-35	-34	-115
Non-interest-bearing liabilities	-7,904	-8,278	-7,941	-7,528
Capital employed	31,293	32,007	30,853	28,900
Goodwill and other intangible assets	-26,817	-27,109	-25,843	-24,204
Capital employed excluding goodwill and other intangible assets	4,476	4,898	5,010	4,696

Capital employed and capital employed excluding goodwill and other intangible assets calculated as the average of the last four quarters compared with financial statements in accordance with IFRS

SEK million	Average	Q4 2025	Q3 2025	Q2 2025	Q1 2025
Capital employed	30,764	31,293	32,007	30,853	28,900
Capital employed excluding goodwill and other intangible assets	4,770	4,476	4,898	5,010	4,696
	Total
EBITA	6,318	1,717	1,543	1,562	1,495
Return on capital employed	20.5%
Return on capital employed excluding goodwill and other intangible assets	132%

About Us
Lifco offers a safe haven for small and medium-sized businesses. Lifco’s business concept is to acquire and develop market-leading niche businesses with the potential to deliver sustainable earnings growth and robust cash flows. Lifco is guided by a clear philosophy centred on long-term growth, a focus on profitability and a strongly decentralised organisation. The Group has three business areas: Dental, Demolition & Tools and Systems Solutions. At year-end 2025, the Lifco Group consisted of 275 operating companies in 37 countries. In 2025, Lifco reported EBITA of SEK 6.3 billion on net sales of SEK 28.3 billion. The EBITA margin was 22.4 per cent. Read more at lifco.se.