Elmera Group ASA (STU:1ZK) Q4 2025 Earnings Call Highlights: Navigating Challenges with …

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Fri, February 13, 2026 at 10:06 AM GMT+9 3 min read

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This article first appeared on GuruFocus.

Release Date: February 12, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Elmera Group ASA (STU:1ZK) improved its adjusted EBIT by 3.1% year-on-year despite a 5% reduction in volume sold.

The business segment delivered a strong financial quarter with significant improvement in operating profit year-on-year.

Approximately 50% of Norwegian households have selected Norgis Priess, indicating strong market penetration.

The company maintained its market share in the consumer segment despite increased churn following the August launch.

Elmera Group ASA (STU:1ZK) continues to observe positive momentum for M&A transactions, indicating potential future growth.

Negative Points

Net revenue adjusted ended at 463 million NOK, down from 486 million NOK in Q4 of the previous year.

The consumer segment experienced an initial churn increase in October following the August launch.

Mild weather reduced average consumption per delivery by 2% year-on-year.

The Nordic segment faced credit-related headwinds in parts of the Swedish portfolio, expected to continue into 2026.

Increased sales and marketing costs and strategic costs affected profitability for both mobile and Alliance segments.

Q & A Highlights

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Q: Volumes increased in the 1st quarter and Nordic performs well. The change in guidance seems counterintuitive. Can you comment on that? A: The volume development in the 1st quarter has been better than expected. However, high price sentiment and volatility are putting pressure on our variable margins. Additionally, we expect increased prices to offset operational improvements. We also anticipate credit-related headwinds in the Swedish portfolio. Despite these challenges, we see opportunities to gain market share, which will impact short-term profitability but strengthen our market position long-term. Therefore, we target an improvement from 487 million in 2025 to around 550 million in 2026. - Rolf Baumann, Head of Elmera Group

Q: The networking capital increased significantly. Was this more than anticipated and how will this affect financing costs going forward? A: The change from interest-bearing supply credit to bank debt was expected and aligns with our forecasts. The balance sheet reflects this, and high prices and volumes will lead to higher financing costs in the short term. - Hanni Nogu, CFO

Story Continues  

Q: Regarding variable contracts, can you comment on the recent claims from the Consumer Council and your actions regarding outstanding variable contracts? A: We have informed customers multiple times to change their products and services. We maintain communication with authorities, who support our approach. The market sentiment is expected to phase out this product, accelerated by the Norgis subsidizing scheme. - Rolf Baumann, Head of Elmera Group

Q: You state that customer growth has been positive into the 1st quarter. Can you elaborate on that? A: We experienced solid growth in the consumer segment in Q3 and continued growth in Q4. This trend has persisted into the 1st quarter, supported by active sales and marketing efforts, which are crucial for long-term profitability. - Rolf Baumann, Head of Elmera Group

Q: What’s your reflection on the proposed dividend level of 2 kron per share? A: The proposed dividend represents a balanced allocation of capital, considering both shareholders and other stakeholders. It is slightly higher than the underlying cash generation in 2025, including proceeds from the sale of Metsum shares, which aligns with our principle of sharing asset development proceeds with shareholders. - Hanni Nogu, CFO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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