Engineering and advisory firm AFRY reported a Q4 sales miss, with net sales down 6.2% year-over-year to SEK 6,647 million, 2% below consensus. Despite the revenue shortfall, the company improved its adjusted EBITA margin to 8.7% from 8.3%. However, adjusted EBITA of SEK 577 million also fell short of expectations, missing the consensus by 4%.

AFRY's organic growth, adjusted for calendar effects, was negative 4.3% for the quarter, reflecting challenging market conditions. The Industry segment was particularly soft. CEO Linda Pålsson noted the company's restructuring efforts during 2025 to build a foundation for profitable growth. For the full year, net sales decreased by 5.2%, with a corresponding decline in adjusted EBITA.

Despite the sales challenges, AFRY's backlog remains strong at SEK 20.4 billion, offering organic growth of 5.4%. The company's focus on structural growth areas, including energy transition, defense, and transport infrastructure, offers potential for future success. The board proposed maintaining the dividend at SEK 6.00 per share for 2025.

This mixed performance reflects broader economic headwinds affecting the engineering sector. Investors will be watching closely to see if AFRY can leverage its backlog and strategic focus to drive revenue growth and improve profitability in the coming year. The company's ability to navigate these challenges will be key.