Business Review January – December 2025
President & CEO Mika Mahlberg’s comments
The fourth quarter was clearly the strongest of the year – our net sales grew 27 per cent year on year.
The year 2025 ended on a positive note. Thanks to the partial recovery in the market and our profitability improvement program, the fourth quarter was clearly the strongest of the year. Our net sales grew 27 per cent year on year and amounted to EUR 97.1 (76.4) million. For the full year, Group net sales decreased 2 per cent year on year and amounted to EUR 348.2 (356.5) million. However, the comparability of net sales was impacted by the executed divestments, and full year net sales, excluding divested businesses, grew 4 per cent. The year-on-year growth in net sales, excluding divested businesses, was negative during the first half of 2025 but turned clearly positive during the second half as a result of the gradual improvement in market conditions.
In the last quarter of the year, our recurring EBITDA more than doubled year on year being EUR 8.3 (3.9) million, or 8.6 (5.1) per cent of net sales. The ramp-up of Business Site Gliwice in Poland has taken much longer than anticipated and is still ongoing. Recurring EBITDA, excluding the ramp-up costs for Gliwice, was EUR 10.3 million (3.9), demonstrating a clear performance improvement of the base business.
During the fourth quarter, we signed agreements with significant new customers. Our comparable order book at the end of 2025 was EUR 71.6 million, which is 26 per cent more than a year earlier. However, there were still differences in demand between the different market segments, and demand has not yet returned to normal levels.
Networking at the Defense Supplier Day
The defense sector is an important industry for Fortaco. In November, we organized a Defense Supplier Day for the defense sector suppliers. The aim was to network and increase understanding of opportunities offered by this growing sector and to discuss how risks and challenges can be overcome together. Also presented at the event was our customer BAE Systems Hägglunds’ amphibious Beowulf vehicle for military applications, humanitarian aid, disaster relief, firefighting, and rescue operations. Beowulf’s front and rear cabins are designed and manufactured by Fortaco.
The aim of Defense Supplier Day was to increase networking and understanding of opportunities offered by this growing sector.
Advances in product development
At the Bauma and Agritechnica fairs 2025, we introduced the Fortaco SmartCabin system. The SmartCabin concept is a modular control system developed by Fortaco. It enables the use of equipment provided by different suppliers by integrating them into one easy-to-use platform. The control system integrates cloud connectivity, infotainment, cabin controls, HVAC and camera systems and displays. The SmartCabin system speeds up a customer’s design and product development process and significantly reduces the time and costs spent by the customer on product development. At the fairs, we also introduced a safety cabin which Fortaco has designed and manufactured for the fully electric ONOX tractor.
Sustainability work progressed
In 2025, we continued our sustainability work. Towards the end of the year, we started discussions about the potential of low-emission steel with several customers and suppliers. We advanced our climate program by preparing science-based emission reduction targets and a transition plan. We also organized sustainability training for our personnel.
Cornerstones of strategy
During the last quarter of the year, we increased our manufacturing capacity to meet the partial recovery of market demand. This year, we will focus on the cornerstones of our strategy – delivery reliability and high quality, as well as the implementation of the Fortaco 26 profitability improvement program.
I would like to warmly thank all Fortaco employees for their committed contributions, our partners for their excellent cooperation, and our customers and the main owner for their trust during the past year.
