Takkt (ETR:TTK) management on its preliminary full-year 2025 earnings call described a “difficult year” marked by persistent market volatility, weaker end-market demand in several customer segments, and a slower-than-expected pace of customer reactivation. CEO Andreas Weishaar said the company did not meet the targets it set at the beginning of the year, but argued that many initiatives under the “TAKKT Forward” strategy are showing encouraging early results and should contribute more visibly as the company progresses through 2026.
2025 macro backdrop pressured demand
Weishaar highlighted uncertainty and volatility as key factors in 2025, citing tariffs, geopolitical conflicts, DOGE-related activities, and the U.S. government shutdown in October and early November as influences on customer behavior. He also pointed to continued weakness in European manufacturing, especially in Germany, with automotive and other export-oriented industries struggling.
- Industrial & Packaging (I&P) in Europe: Manufacturing PMI readings signaled continued contraction, negative order intake trends persisted, and customers remained hesitant to invest in new equipment.
- U.S. office furniture: Demand declined from government customers and adjacent segments such as healthcare and education, which Takkt linked to DOGE activities; management also cited muted business demand due to tariff-related uncertainty.
- Foodservices: The Restaurant Performance Index stayed below the expansion threshold for most of 2025, and management noted a December report showing a 2% year-over-year decline in restaurant sales and a 1% decline in customer traffic.
Full-year results: sales down, margin compressed, cash flow positive
CFO Timo Krutoff reported preliminary 2025 group sales of EUR 964.3 million, down 8.4% year over year. Currency effects and the 2024 sale of Mydisplays reduced sales by almost 2 percentage points; adjusted for these items, organic growth was -6.6%. Krutoff said I&P and Foodservices posted mid-single-digit declines, while Office Furniture & Displays (OF&D) remained down double digits.
EBITDA was EUR 19.8 million, down from EUR 55.7 million in the prior year. Management attributed the decline primarily to lower sales and a lower gross profit margin, while noting savings in personnel and marketing costs that were partly offset by increased IT spending tied to process and systems improvements and a shift toward more Software-as-a-Service expense being booked in operating costs.
The adjusted EBITDA margin was 3.8%, down from 6.9% a year earlier. Krutoff said one-time costs remained “very significant” and were at a similar level to the prior year, reflecting continued investment in the company’s future setup.
Despite earnings pressure, Takkt ended the year with positive free cash flow of a little more than EUR 10 million, driven by stronger cash generation in the second half. Krutoff cited inventory reductions, lower receivables, lower operational capex, and proceeds of slightly less than EUR 2 million from a real estate sale in the Nordics.
Q4: one-time costs and inventory valuation weighed on EBITDA
In the fourth quarter, group sales fell to EUR 228 million, down 10.4% year over year, with organic growth of -6.7%. Krutoff said I&P continued to stabilize, while OF&D and Foodservices were in low double-digit organic decline.
Q4 EBITDA was EUR -7.5 million, which management said reflected the lower top line and “very high” one-offs. The gross profit margin was 0.8 percentage points below the prior year, primarily due to one-time inventory valuation effects; adjusted for those, gross margin was 0.3 percentage points higher.
One-time costs in Q4 totaled EUR 12.2 million, mainly tied to the setup of a new operating model in I&P, plus costs related to warehouse optimizations in Foodservices and the U.K. The adjusted EBITDA margin in the quarter was 2.1%.
Divisional commentary: stabilization at I&P, mixed U.S. performance, Foodservices still loss-making
I&P: Krutoff said I&P saw a slight improvement in Q4 versus earlier quarters despite a challenging environment, with Germany described as particularly tough. He noted better developments in other regions, including the Nordics and the U.K. Gross margin declined by around 1 percentage point in 2025, partly due to more attractive pricing. One-time costs in I&P totaled almost EUR 10 million, mostly tied to implementing the new operating model. Unadjusted EBITDA margin was 7.7% versus 11.8% the prior year.
OF&D (U.S.): Organic sales declines were “just below” 10% in Q4 and the full year. Management reiterated that National Business Furniture (NBF) faced restrictive ordering from government, education, and healthcare customers, while Displays2Go (D2G) delivered a second consecutive quarter of positive organic growth. Krutoff said cost and margin management helped, with lower marketing, personnel, and other costs on an adjusted basis.
Foodservices: The division posted a low double-digit organic decline in Q4 and full-year organic growth of -6.6%. Gross profit margin was 1.4 percentage points below the prior year due to freight and tariff effects and inventory valuation. The business remained under pressure, with adjusted EBITDA profitability at -0.7%.
Strategy actions, impairments, and 2026 early view
Weishaar said Takkt is prioritizing investment in systems, IT, and AI, as well as employee development, and therefore will propose suspending the dividend for 2025. He said the company remains committed to resuming “substantial dividend payments” in the future based on sustainable earnings and cash performance.
On the strategy front, management highlighted several actions in 2025, including the wind-down of a low-profitability food service contract business, the integration of Post-Up Stand into Displays2Go, assortment simplification via an 80/20 approach, brand initiatives within I&P, expansion of private label and restaurant chain activity in Foodservices (including EUR 5 million in sales generated in 2025), and the launch of advisory-led selling initiatives such as NBF’s “Design My Office.”
The company also discussed progress on its operating model, including the establishment of a TAKKT Competence Center, increased AI use in processes such as product data integration, and warehouse footprint streamlining in the U.K. and Foodservices. Weishaar said Takkt has achieved more than half of its EUR 30 million run-rate savings goal.
Krutoff said Takkt recorded EUR 125.5 million of goodwill impairments at year-end, with more than half related to Foodservices and the remainder tied to OF&D. He said remaining goodwill for the U.S. division is EUR 40 million, with EUR 27.7 million attributed to NBF, close to EUR 5 million at D2G, and EUR 7.6 million at Foodservices. Net financial liabilities increased by EUR 17.5 million to EUR 131 million, which Krutoff said was mainly due to the dividend payment in May; the equity ratio remained above 50%.
Looking to 2026, Weishaar said Takkt expects uncertainty and volatility to persist and anticipates GDP growth broadly similar to 2025 in the U.S. and eurozone with gradual improvement in Germany. He said the company expects a muted start to the year with continued negative year-over-year sales development, followed by a gradual return to positive organic growth over the course of the year as commercial measures gain traction. Management said it still targets positive free cash flow in 2026, despite expectations for higher capex and less contribution from net working capital release. Takkt said it plans to publish formal 2026 guidance at the end of March alongside its annual report and to provide an update during an analyst call on March 26.
About Takkt (ETR:TTK)
TAKKT AG operates as a B2B direct marketing company for business equipment in Germany, the rest of Europe, and the United States, and internationally. The company operates in three segments: Industrial & Packaging, Office Furniture & Displays, and FoodService. The Industrial & Packaging segment offers pallet lifting trucks and swivel chairs; special-purpose products, including environmental cabinets and containers for hazardous materials, as well as collapsible boxes, package paddings, shipping pallets, and stretch films under the kaiserkraft name; shipping packaging products under the ratioform brand; and a wide range of office furniture and business equipment under the BiGDUG and OfficeFurnitureOnline names.
