SmartCraft ASA (FRA:9YK) Full Year 2025 Earnings Call Highlights: Strong Growth and Strategic …

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Fri, February 13, 2026 at 10:00 PM GMT+9 2 min read

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This article first appeared on GuruFocus.

Release Date: February 13, 2026

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

Positive Points

SmartCraft ASA (FRA:9YK) reported an 8.4% year-over-year growth, with 6.5% organic growth, indicating a positive financial trajectory.

The company has successfully transitioned 95.9% of its revenue to recurring, providing a stable financial base.

SmartCraft ASA is leveraging AI to enhance product offerings, particularly in the quoting process for electricians, which improves efficiency and profit margins.

The company is expanding geographically, with successful entries into the UK and Finland, indicating growth potential beyond Scandinavia.

SmartCraft ASA maintains a strong financial position with a solid equity ratio of 74% and a net cash-positive status, ensuring financial stability.

Negative Points

The cash flow experienced a dip year-over-year due to extraordinary tax payments and increased accounts payable.

The HVAC and plumbing segment showed minimal growth, attributed to a soft market in Norway, impacting overall performance.

There are ongoing challenges with downgrades, particularly in Finland, affecting the company's financial metrics.

The macroeconomic climate remains soft, posing external challenges to achieving higher growth rates.

Despite a strong customer base, the company faces competition from new market entrants, which could impact market share.

Q & A Highlights

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Q: Are you open to taking a temporary hit to margins to drive geographical expansion of your products? A: Jeremiah Johnson, CEO: We aim to handle geographic expansion within our current financial framework, maintaining margins around 30%. However, if an extraordinary opportunity arises, we would consider it.

Q: Why is HVAC and plumbing barely growing compared to Electro and SME construction? A: Jeremiah Johnson, CEO: The market in Norway, where we have a majority of our revenues, has been soft, affecting growth in HVAC and plumbing.

Q: Could you elaborate on downgrades and their development from Q3 to Q4? A: Kenne Krogholm Olsen, Interim CFO: We have seen a decrease in downgrades by 0.2% points compared to Q3, although major downgrades in Finland remain in effect.

Q: Have you seen reduced activity in Sweden following the expiry of the temporary tax deduction increase? A: Jeremiah Johnson, CEO: We haven’t observed strong signals of reduced activity yet, but Q1 is still early.

Story Continues  

Q: How much are you increasing prices for 2026, and what effect will this have on ARR and revenue? A: Jeremiah Johnson, CEO: We increased prices for one of our biggest products, Biglet, by about 10%. Price adjustments vary by region and product, and we aim to align price increases with added features and functions for customers.

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

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