GPV improves profitability and cash flow in 2025 despite slight sales decline

For the full year, sales reached DKK 8.7 billion, down 3% from DKK 8.9 billion in 2024. However, EBITDA increased by 3% to DKK 641 million, reflecting gradual margin improvements throughout the year. The figure includes one-off restructuring costs of DKK 17 million related to operational footprint optimisation and severance payments.

The company also reported a strong fourth quarter. Sales in Q4 2025 totalled DKK 2.1 billion, in line with the same period in 2024, while EBITDA rose 23% to DKK 170 million.

Operating cash flow for the year increased significantly to DKK 744 million, compared with DKK 291 million in 2024.

According to CEO Bo Lybæk, 2025 was characterised by stabilising demand combined with ongoing market volatility.

“While overall demand remained flat, we are seeing early signs of recovery in certain segments including Transportation and Railway, CleanTech, Measurement & Control, and HighTech Consumer, where demand is expected to increase by 5-8% in 2026,” Lybæk said.

Continued optimisation of production footprint

During 2025, GPV continued optimising its global manufacturing footprint. Electronics production in Slovakia was consolidated into the company’s sites in Piešťany and Nová Dubnica, while mechanical production was consolidated at the Bangkok facility in Thailand. Cable harness manufacturing was concentrated in Slovakia and Sri Lanka.

The company also completed expansions in Thailand and Slovakia during the year, while the first phase of an expansion project in Mexico was initiated. The final phase of the Mexican expansion is expected to be completed in early 2027.

According to GPV, these initiatives are aimed at improving efficiency, increasing capacity utilisation and supporting customers’ regional manufacturing strategies.

Defence opportunities and memory supply concerns

Defence is an established business area for GPV, and the company said it is increasingly engaging with European and international defence-related customers. The defence project pipeline developed positively during 2025, positioning the company to supply high-reliability electronics, cable harnesses and mechatronics solutions to the segment.

Meanwhile, the global supply chain remains largely stable, although strong demand for AI and data centre infrastructure is tightening the availability of certain memory components.

GPV expects rising prices, longer lead times and allocation challenges for some memory chips to continue through 2026, with no clear market relief anticipated before 2027–2028.

To address the issue, the company has established a dedicated “Memory Task Force” and is working closely with suppliers and customers to improve transparency and demand planning.

“The current situation with memory components requires attention, and we stay close to both customers and suppliers. In the current situation, transparency and early planning are therefore crucial. Our strong supplier network and long-term customer collaboration are key strengths in this context,” said Bo Lybæk.

Outlook for 2026

Despite limited demand visibility and continued market volatility, GPV expects stable sales in 2026.

The company forecasts revenue in the range of DKK 8.5–9.0 billion and EBITDA between DKK 690 million and DKK 750 million.