Profoto reports lower net sales, revises financial targets

GaryPageau
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Sweden-based professional lighting supplier Profoto Holdings reported, for the full year ending in December, sales were SEK 617m (731), down 15.6 percent. Organic growth totaled -10.4 percent, and the currency effect, -5.2 percent. EBIT was SEK -6m (167), and the EBIT margin was -1.0 (22.9) percent. For the fourth quarter, net sales totaled SEK 163m (200), down 18.6 percent. Organic growth totaled -9.3 percent, and the currency effect, -9.3 percent.

In light of changing market conditions and the strategic shift toward LED, the company’s board of directors updated the financial targets. The updated targets entail annual organic sales growth that exceeds 5 percent and a 20 percent EBIT margin, compared with the previous targets of 10 percent growth and an EBIT margin of 25–30 percent. The dividend policy remains unchanged, and Profoto aims to distribute at least 50 percent of net profit to its shareholders through cash dividends and/or share buybacks, taking into account factors such as financial position, cash flow, and growth opportunities.

Key ratios, Group

Oct–Dec 2025 Oct–Dec 2024 Full year 2025 Full year 2024
Net sales, SEKm 163 200 617 731
Organic growth, % -9.3 -3.1 -10.4 -6.5
EBITDA, SEKm 33 72 104 226
EBITDA margin, % 20.0 36.1 16.8 30.9
EBITA, SEKm 27 67 81 204
EBITA margin, % 16.8 33.6 13.2 27.9
EBIT, SEKm 16 57 -6 167
EBIT margin, % 9.8 28.7 -1.0 22.9
Adjusted EBIT, SEKm 16 52 41 153
Adjusted EBIT margin, % 9.8 26.0 6.6 20,9
Profit/loss for the period, SEKm 7 43 -23 126
Cash flow from operating activities, SEKm 38 37 151 97
Net debt, SEKm 181 235 181 235
Net debt/EBITDA LTM 1.74 1.04 1.74 1.04
Return on operating capital, % 7.2 31.9 7.2 31.9
Earnings per share, SEK 0.18 1.08 -0.57 3.15

According to the company:

The fourth quarter was characterized by a continued tough and cautious market situation, affected by the macroeconomic situation and ongoing uncertainty among our customers. Sales totaled SEK 163m (200), a decrease of 19 percent compared to the previous year. Organic growth was -9 percent, and currency effects negatively impacted sales by 9 percent. Overall, we saw no significant changes in the market landscape compared with the previous quarter. At the same time, we note that some Asian players have continued to strengthen their market positions through aggressive pricing strategies and large discounts, further intensifying competition. The development continued to vary between our regions. In the US, the market remained cautious, driven by uncertainty regarding macroeconomic trends, resulting in a decline of 18 percent in organic sales compared to the previous year. In EMEA, we observed stable demand compared with the previous quarter, despite an organic sales decrease of 7 percent. In APAC, growth continued in China, while Japan remained weak, resulting in overall organic growth of 1 percent.

During the year, we have taken important steps in our strategic LED initiative. In line with previous communications, we saw a certain financial turnover effect from the LED launches toward the end of the year, with positive pre-sales of the L600. The next key step is the start of deliveries of our first LED panel, the Profoto ProPanel, which is expected at the end of the first quarter of 2026, with some financial turnover effect during the second quarter. At the same time, we continue to establish ourselves in the Cinema segment through a number of new agreements and partnerships. Although we are still in an early phase of establishment, we see clear progress, strong collaboration with our partners, and increasing market interest.