CEO's review Q4 2025

“For Fiskars Group, 2025 was a year of introducing a way of operating based on two fully accountable and operationally independent Business Areas. At the same time, we navigated a dynamic market environment, characterized by continued uncertainty.

In 2025, we delivered stable comparable net sales. After a volatile first half of the year marked by heightened trade tariffs, we were able to catch up in net sales in the important holiday season thanks to our teams’ diligent work. However, our full-year comparable EBIT declined markedly to EUR 76 million. The most significant reason for the decline was our deliberate actions to tackle Business Area Vita’s elevated inventories. As we communicated in connection with the third quarter results, and further in our profit warning in November, Business Area Vita scaled down production, which impacts EBIT through negative supply chain variance. Clearly, we are not satisfied with this profit development and are implementing determined measures to strengthen our performance this year.

Safeguarding cash flow was a priority for us, especially in the second half of 2025. Our actions to reduce elevated inventories started to yield results toward the end of the year, driving fourth-quarter free cash flow to a strong EUR 92 million level and full-year cash flow to EUR 76 million. With net debt to comparable EBITDA at 3.31, we are still above our target maximum level of 2.5X and are continuing focused efforts to reduce leverage.

Looking at our Business Areas, Business Area Vita’s comparable net sales increased by 3% in 2025, with good development during the second half of the year, the period most critical for Vita. Georg Jensen delivered particularly good momentum throughout the year. Royal Copenhagen and Moomin Arabia also performed well, leveraging the commercial opportunities offered by their 250th and 80th anniversary years, respectively. Nevertheless, due to the necessary inventory-related actions, Business Area Vita generated only EUR 28 million of comparable EBIT in 2025, falling short of where it ought to be.

We announced today that Business Area Vita is planning changes to drive a turnaround in its financial performance and lay foundations for profitable growth. The planned changes include simplifying the organizational structure as well as right-sizing capacity and streamlining operations at certain manufacturing sites. These planned changes are expected to lead to a net reduction of approximately 310 roles globally and to result in total annual cost savings of approximately EUR 28 million. Close to one third of the total savings is expected to realize in the second half of 2026, and the majority of the rest of the savings in 2027.

Business Area Fiskars’ year was largely impacted by the uncertainty stemming from increased U.S. tariffs, which contributed to a 3% decrease in the Business Area’s comparable net sales in 2025. Business Area Fiskars’ teams demonstrated strong execution in mitigating tariff impacts and protecting profitability, with comparable EBIT for the full year amounting to EUR 67 million. The Business Area also actively advanced its innovation pipeline during the year, introducing two entirely new product categories: Pet Care and Power Tools. Pet Care has been available with selected retailers since November, and the initial reception has been encouraging. The Power Tools category is set to reach stores early this year. The Fiskars brand also renewed existing categories, for example, through the launches of the new Ultra axe and the OneClick tools. These launches are integral to staying relevant for consumers and have been very well received.

We continued to advance toward our sustainability targets. One of our key sustainability KPIs is to generate a majority of sales from circular products and services by 2030. At the end of 2025, we were at 27% and well on track to reach our goal. Examples of this progress during the past year include Georg Jensen’s silver jewelry, which has been made with 100% recycled silver since the beginning of 2025, and the sixth generation of Fiskars Classic scissors, which are designed for longevity and manufactured using 92% recycled steel.

In recent years, we have transitioned from a centralized matrix structure toward operationally independent Business Areas to improve flexibility and speed of execution. We are now on the final leg of this process with the Business Areas becoming separate legal subgroups under the holding company Fiskars Corporation. This is advancing according to plan, and it is expected that the separation into individual legal entities will be finalized by the end of the first quarter of 2026. This step also enables increasing transparency and measurability at the Business Area level. We are planning to launch the next phase of the Group strategy and new financial targets in connection with our Capital Markets Day, scheduled for May 12, 2026.

In the year ahead, we are not anticipating an immediate turnaround in the demand environment. We expect consumers to remain cautious in their spending as uncertainties in the global economy and geopolitical environment persist. At the same time, we are initiating measures to strengthen our profitability. With the planned changes to improve Vita’s financial performance, we expect the Group’s 2026 comparable EBIT to improve from the 2025 level.

I would like to thank our employees for their resilience, and our customers and partners for their commitment, during what was another dynamic year. We move forward with determination to improve our performance.”

JYRI LUOMAKOSKI

President & CEO