Acceleration fuelled by a year of transformation
October – December 2025
- Net revenue increased by 3%, totalling SEK 464 (451) million. In local currencies there was growth of 7%.
- EBIT was SEK 10 (-5) million, corresponding to an operating margin of 2.2% (-1.1%). Adjusted EBIT was SEK 13 (1) million and the adjusted operating margin was 2.8% (0.3%).
- Cash flow for the period was SEK 79 (32) million and the cash position at the end of the period was SEK 235 (297) million.
- Earnings per share before and after dilution was SEK 0.10 (-0.01).
January – December 2025
- Net revenue increased by 12%, totalling SEK 1,816 (1,628) million. In local currencies there was growth of 14%.
- EBIT was SEK 28 (18) million, corresponding to an operating margin of 1.6% (1.1%). Adjusted EBIT totalled SEK 45 (25) million, and the adjusted operating margin was 2.5% (1.5%).
- Cash flow for the period was SEK -50 (68) million.
- Earnings per share before and after dilution was SEK -0.01 (0.45).
| Oct-Dec | Jan-Dec | |||
| SEKm (unless stated otherwise) | 2025 | 2024 | 2025 | 2024 |
| Net revenue | 464 | 451 | 1,816 | 1,628 |
| Growth (%) | 3% | 18% | 12% | 6% |
| Growth in local currencies (%) | 7% | 19% | 14% | 6% |
| Gross profit | 202 | 195 | 773 | 724 |
| Profit after variable costs | 98 | 93 | 378 | 361 |
| Overhead costs | -75 | -76 | -281 | -270 |
| EBITDA | 21 | 10 | 80 | 84 |
| EBIT | 10 | -5 | 28 | 18 |
| Adjusted EBITDA | 24 | 16 | 97 | 91 |
| Adjusted EBIT | 13 | 1 | 45 | 25 |
| Items affecting comparability | -2 | -6 | -17 | -7 |
| Profit/loss for the period | 8 | -1 | 0 | 36 |
| Gross margin (%) | 43.5% | 43.2% | 42.6% | 44.5% |
| Profit after variable costs (%) | 21.2% | 20.6% | 20.8% | 22.2% |
| Adjusted EBITDA (%) | 5.1% | 3.6% | 5.3% | 5.6% |
| Adjusted EBIT (%) | 2.8% | 0.3% | 2.5% | 1.5% |
| Cash flow for the period | 79 | 32 | -50 | 68 |
| Free cash flow | 87 | 40 | -24 | 97 |
| Net debt (+) / Net cash (-) | -235 | -297 | -235 | -297 |
| Earnings per share before dilution (SEK) | 0.10 | -0.01 | -0.01 | 0.45 |
| Earnings per share after dilution (SEK) | 0.10 | -0.01 | -0.01 | 0.45 |
Significant events during the reporting period
On 12 November 2025 Fredrik Kjellgren assumed the role of Chief Financial Officer of Pierce Group AB.
Significant events after the end of the reporting period
The Group has renewed the credit facility agreement with its existing banking partner, one of Sweden’s largest banks, replacing the facility scheduled to expire in the first quarter of 2026.
CEO comments
We conclude 2025 with a strong fourth quarter and a significantly improved result. Adjusted EBIT increased to SEK 13 million, compared with SEK 1 million in the corresponding quarter last year.
Net revenue grew by 7 percent in local currencies during the fourth quarter, despite tougher comparables than the previous quarter, ongoing geopolitical uncertainty, and continued challenging market conditions across several major European markets. We believe we increased market share during both the quarter and the full year. This reflects our consistent focus on the core of our business: the widest and deepest assortment, high stock availability enabling superior choice and fast, reliable deliveries, high-quality product information, competitive pricing, efficient marketing, and responsive customer care.
For the full year, adjusted EBIT reached SEK 45 million, compared with SEK 25 million in 2024 (and a loss of SEK 69 million in 2023), representing an improvement of 81 percent year over year. During the year, results were impacted by SEK 29 million in transformation-related costs, primarily related to external consultants and temporary parallel license fees in connection with the implementation of our new cloud-based IT systems. In accordance with applicable accounting standards, these costs are expensed as incurred. Despite this, profitability improved significantly.
Our business is seasonal and particularly affected by weather conditions in the first quarter. The most favorable scenario for us is a warm winter in our larger European markets combined with good snow conditions in the Nordics. The first quarter of 2025 was weak, partly due to a lack of snow in the Nordics, but it is also the smallest and least significant quarter of the year. As the motorcycle season began, demand increased, and we delivered several consecutive quarters where we outgrew the market while reducing costs.
During the year, we replaced several key IT systems. Two of four core systems – our Customer Data Platform (CDP) and Product Information Management (PIM) system – have been launched. A pilot of the new e-commerce platform has been completed. The implementation of our new Warehouse Management System (WMS) and the full rollout of all systems are expected to be completed during the first half of 2026.
At year-end, we had a strong cash position of SEK 235 million and balanced inventory levels, following focused efforts to improve inventory quality and reduce working capital without compromising availability.
Pierce 2.0 was launched in the third quarter of 2023 and is our program to increase efficiency and scalability. Through this program, we have fundamentally reshaped the organization, reduced costs, and changed how we operate. Sales per white-collar FTE have increased by approximately 84 percent since launch. White-collar FTEs have been reduced by around 38 percent while the business has grown by 15 percent. This demonstrates the scalability of our business model and the structural improvements delivered through Pierce 2.0. I am proud of the focus and commitment shown by the team during this demanding period.
Looking ahead to 2026, we expect further improvement in profitability, although quarterly results will continue to be affected by seasonality and weather conditions. Transformation-related costs will decline as systems are fully deployed, which is expected to be completed during the first half of 2026. At the same time, depreciation will decrease as major assets become fully depreciated. Combined, these effects are expected to improve EBIT by SEK 30 – 40 million on an annualized basis after the systems are fully operational.
To drive long-term growth, we continue to improve our core business. As comparables become stronger, the growth rate driven by improvements in the existing business is expected to moderate somewhat. As our new technology platform is fully deployed, we will expand into new markets and adjacent verticals, including the localization of 12 markets currently served through our .eu site. We are also seeing encouraging momentum in our mountain bike and scooter/moped categories, where we are leveraging our platform to drive cross-sales synergies. These initiatives will take time to scale, but will be instrumental in strengthening our long-term growth.
The European e-commerce market for motorcycle gear and equipment is ripe for consolidation. The market remains fragmented and the benefits of scale are significant. Several of our major European competitors have financial owners, and the question is not if consolidation will occur, but when and by whom it will be driven. With our scalable platform and strong private label share, Pierce is well positioned to take an active role as this opportunity materializes.