During 2025, we improved profitability, driven by increased efficiency and a modest recovery in market sentiment.
Net revenue for the Group increased by 9.0 percent to NOK 7,406 million. Adjusted EBITA rose by 62.2 percent to NOK 326 million, corresponding to an adjusted EBITA margin of 4.4 percent (3.0). Cash flow from operating activities increased by NOK 131 million to NOK 552 million.
Market activity varied significantly across our regions. We experienced growing demand in Sweden towards the end of the year, continued strong demand in Denmark, and weaker conditions in Norway and, to some extent, Germany. In Sweden, the market for construction and renovation of offices and commercial properties recovered, easing price pressure. Growth in Denmark was primarily driven by new-build and renovation in commercial segments, with additional support from residential demand. In Norway, project approvals increased toward year-end; however, recovery remains gradual due to persistently high interest rates. In Germany, market conditions remained challenging throughout the year.
9%
Net revenue growth for the Group.
Efficiency and cost measures delivering results
At the beginning of 2025, we initiated a series of actions to reduce costs and enhance operational efficiency. By the fourth quarter, we had reduced our overhead run-rate by NOK 30 million compared to the first quarter of 2024.
Across our operations, we implemented targeted initiatives, including improved purchasing agreements, organizational adjustments, workforce reductions, fleet optimization, and better utilization of warehouses and office space. We also strengthened our purchasing agreements across the group, with particularly significant improvements secured in Sweden.
Our ambition is clear: by the end of 2026, fewer than five companies should report an EBITA margin below 5 percent, compared to more than 30 at the end of 2025. This will be driven by continued corrective actions and disciplined execution of the initiatives already underway, supported by improving market conditions.
In Sweden, financial performance improvements translated into higher sales and margins already in 2025, with reported EBITA increasing by NOK 32 million (+52%) year-on-year. We expect the full effect of these measures in 2026. Denmark delivered strong performance, with robust sales growth, improved margins, and a reported EBITA increase of NOK 61 million (+137%), driven by both organic growth and acquisitions of high-margin niche companies. Norway reported slightly lower sales and margins, with reported EBITA decreasing by NOK 12 million (-5%) year-on-year. While most companies performed well given the market conditions, we remain focused on improving profitability in underperforming units.
Looking ahead, we see significant potential for further improvement across all markets. By leveraging our toolkit and shared initiatives, we will maintain a strong focus on performance and act decisively to address gaps as they arise.
Continued high level of self-financed M&A activity
Our strategy of building a group of high-performing, high-margin companies is supported by strong, trust-based relationships with founders and leaders. Approximately 80 percent of new companies joining are sourced through referrals within the HG network. Our ambition is to include only companies that rank among the top 20 percent in their respective markets.
In 2025, we completed eleven acquisitions with combined annual net revenue of NOK 390 million: six in Denmark, two in Norway, two in Germany, and one in Sweden. We now comprise more than 160 companies across our markets.
Following a period of accelerated, debt-financed growth, we are now executing a more balanced approach as most of the value creation potential going forward is in our existing companies. We will continue to exploit attractive M&A opportunities especially in Denmark and Germany, while targeting to be fully self-financing our acquisitions by end of 2026 / start of 2027. This shift has already resulted in an improved leverage during 2025.
11
well-established local craft companies joined HG in 2025.
Strong financial position supports continued growth
Our operating cash conversion* remained strong at 104 percent in 2025. To further strengthen our platform for continued M&A-driven growth, we amended and extended our loan agreement with our banking syndicate in September. In addition, NOK 371 million of new capital was contributed by our owners in the latter part of 2025 and first quarter of 2026. This solid financial foundation positions us well to continue our growth journey.
Sustainable companies creates long-term value
We are committed to taking a leading role in our industry by creating positive impact for people, society, and the environment. Our focus is on reducing environmental footprint, ensuring a safe and including working environment for our employees, and promoting sustainable practices across our companies.
In 2025, we emphasized Code of Conduct training for all craftspeople to ensure consistent quality and responsible business practices. We measure Scope 1 and 2 emissions, and 100 percent of relevant entities are ISO 14001 certified as part of our efforts to reduce carbon emissions. Additionally, apprentices represent more than 8 percent of our workforce, an important element of our ESG strategy and a key driver of future growth.
In 2025, we laid a solid foundation for scaling our operations as market conditions gradually improve and pricing pressure eases.
A culture built on craftsmanship and collaboration
Craftsmanship and collaboration are at the core of HG. Each company operates as a strong local market leader, maintaining its brand, workforce, and customer relationships, while benefiting from shared knowledge and resources across the Group.
HG’s role is to support these companies by leveraging their expertise, promoting best practices, and enabling coordination at scale. Our value creation toolkit reinforces performance of our best-of-the-best companies, who share knowledge, best practice, and resources to jointly enhance group performance and ensure resilience. Collaboration is also fostered through regular interactions, including regional workshops, the Annual General Managers’ Meeting, and quarterly shareholder meetings.
Positioned for scalable growth
In 2025, we laid a solid foundation for scaling our operations as market conditions gradually improve and pricing pressure eases. Our work to improve operational profitability continues. With our toolkit and proven decentralized model, we are well-positioned to outperform the market, expand margins, and capitalize on improving market conditions. We remain firmly on track toward our ambition of becoming the leading surface treatment company in Northern Europe.
Finally, I would like to thank all our employees, partners, and stakeholders for their dedication and contributions to another successful year.
Øyvind Emblem CEO
* Operating cash flow is defined as EBITA less capital expenditures (capex) and changes in net working capital.
CEO Comment
During 2025, we improved profitability, driven by increased efficiency and a modest recovery in market sentiment.
Net revenue for the Group increased by 9.0 percent to NOK 7,406 million. Adjusted EBITA rose by 62.2 percent to NOK 326 million, corresponding to an adjusted EBITA margin of 4.4 percent (3.0). Cash flow from operating activities increased by NOK 131 million to NOK 552 million.
Market activity varied significantly across our regions. We experienced growing demand in Sweden towards the end of the year, continued strong demand in Denmark, and weaker conditions in Norway and, to some extent, Germany. In Sweden, the market for construction and renovation of offices and commercial properties recovered, easing price pressure. Growth in Denmark was primarily driven by new-build and renovation in commercial segments, with additional support from residential demand. In Norway, project approvals increased toward year-end; however, recovery remains gradual due to persistently high interest rates. In Germany, market conditions remained challenging throughout the year.
Net revenue growth for the Group.
Efficiency and cost measures delivering results
At the beginning of 2025, we initiated a series of actions to reduce costs and enhance operational efficiency. By the fourth quarter, we had reduced our overhead run-rate by NOK 30 million compared to the first quarter of 2024.
Across our operations, we implemented targeted initiatives, including improved purchasing agreements, organizational adjustments, workforce reductions, fleet optimization, and better utilization of warehouses and office space. We also strengthened our purchasing agreements across the group, with particularly significant improvements secured in Sweden.
Our ambition is clear: by the end of 2026, fewer than five companies should report an EBITA margin below 5 percent, compared to more than 30 at the end of 2025. This will be driven by continued corrective actions and disciplined execution of the initiatives already underway, supported by improving market conditions.
In Sweden, financial performance improvements translated into higher sales and margins already in 2025, with reported EBITA increasing by NOK 32 million (+52%) year-on-year. We expect the full effect of these measures in 2026. Denmark delivered strong performance, with robust sales growth, improved margins, and a reported EBITA increase of NOK 61 million (+137%), driven by both organic growth and acquisitions of high-margin niche companies. Norway reported slightly lower sales and margins, with reported EBITA decreasing by NOK 12 million (-5%) year-on-year. While most companies performed well given the market conditions, we remain focused on improving profitability in underperforming units.
Looking ahead, we see significant potential for further improvement across all markets. By leveraging our toolkit and shared initiatives, we will maintain a strong focus on performance and act decisively to address gaps as they arise.
Continued high level of self-financed M&A activity
Our strategy of building a group of high-performing, high-margin companies is supported by strong, trust-based relationships with founders and leaders. Approximately 80 percent of new companies joining are sourced through referrals within the HG network. Our ambition is to include only companies that rank among the top 20 percent in their respective markets.
In 2025, we completed eleven acquisitions with combined annual net revenue of NOK 390 million: six in Denmark, two in Norway, two in Germany, and one in Sweden. We now comprise more than 160 companies across our markets.
Following a period of accelerated, debt-financed growth, we are now executing a more balanced approach as most of the value creation potential going forward is in our existing companies. We will continue to exploit attractive M&A opportunities especially in Denmark and Germany, while targeting to be fully self-financing our acquisitions by end of 2026 / start of 2027. This shift has already resulted in an improved leverage during 2025.
well-established local craft companies joined HG in 2025.
Strong financial position supports continued growth
Our operating cash conversion* remained strong at 104 percent in 2025. To further strengthen our platform for continued M&A-driven growth, we amended and extended our loan agreement with our banking syndicate in September. In addition, NOK 371 million of new capital was contributed by our owners in the latter part of 2025 and first quarter of 2026. This solid financial foundation positions us well to continue our growth journey.
Sustainable companies creates long-term value
We are committed to taking a leading role in our industry by creating positive impact for people, society, and the environment. Our focus is on reducing environmental footprint, ensuring a safe and including working environment for our employees, and promoting sustainable practices across our companies.
In 2025, we emphasized Code of Conduct training for all craftspeople to ensure consistent quality and responsible business practices. We measure Scope 1 and 2 emissions, and 100 percent of relevant entities are ISO 14001 certified as part of our efforts to reduce carbon emissions. Additionally, apprentices represent more than 8 percent of our workforce, an important element of our ESG strategy and a key driver of future growth.
A culture built on craftsmanship and collaboration
Craftsmanship and collaboration are at the core of HG. Each company operates as a strong local market leader, maintaining its brand, workforce, and customer relationships, while benefiting from shared knowledge and resources across the Group.
HG’s role is to support these companies by leveraging their expertise, promoting best practices, and enabling coordination at scale. Our value creation toolkit reinforces performance of our best-of-the-best companies, who share knowledge, best practice, and resources to jointly enhance group performance and ensure resilience. Collaboration is also fostered through regular interactions, including regional workshops, the Annual General Managers’ Meeting, and quarterly shareholder meetings.
Positioned for scalable growth
In 2025, we laid a solid foundation for scaling our operations as market conditions gradually improve and pricing pressure eases. Our work to improve operational profitability continues. With our toolkit and proven decentralized model, we are well-positioned to outperform the market, expand margins, and capitalize on improving market conditions. We remain firmly on track toward our ambition of becoming the leading surface treatment company in Northern Europe.
Finally, I would like to thank all our employees, partners, and stakeholders for their dedication and contributions to another successful year.
Øyvind Emblem
CEO
* Operating cash flow is defined as EBITA less capital expenditures (capex) and changes in net working capital.