Translation: Original published in Finnish on 02/06/2026 at 08:00 am EET

Fiskars' Q4 earnings were subdued, and we do not expect a rapid turnaround this year either. However, the guidance expects an earnings improvement for the full year in line with our estimates. We believe that the stock is already pricing significantly better earnings. We reiterate our EUR 11.5 target price and Reduce recommendation.

Q4 earnings were slightly below the estimate, and full-year earnings landed at the lower end of the guidance range

Fiskars' reported revenue decreased by 2% and missed our estimate by the same amount, but comparable revenue grew by 1%, while we estimated 2% growth. Fiskars issued a profit warning in late 2025, and thus the weak Q4 result was known. Q4 adjusted EBIT was 33 MEUR, while our estimate was 35 MEUR. Full-year adjusted EBIT was 76 MEUR, which is at the lower end of the guidance (75-85 MEUR) provided in the profit warning.

New, big savings program in Vita

In connection with the earnings release, the company announced a new savings program in the Vita segment, amounting to as much as 28 MEUR. This is significant even compared to the entire Group's earnings level and is practically the same as the Vita segment's adjusted EBIT last year. The impact of the company's savings programs in recent years has barely been reflected in the bottom line, so we are cautious about the earnings impact of this program as well. Our estimates expect Vita's adjusted EBIT to roughly double to 55 MEUR in 2027 (vs. 2025). Of this, about half comes from the increase in the gross margin as the company's production level returns to the level of sales volumes, and the rest from the impact of volume growth and savings.

Expected positive guidance, but start of year is weak

Fiskars guides for 2026 adjusted EBIT to improve from the 2025 level. Given the weak starting point, we feel this was entirely expected. However, the company states that it does not expect a rapid turnaround in the demand environment, and US tariffs are still weighing on its early-year figures. We also believe that Vita's destocking measures will continue to have a negative impact, especially in the early part of the year, and the company estimates that these measures will last throughout the year for some brands. In our view, the company clearly indicated that Q1 would still be weak, and we forecast its adjusted EBIT to be 16 MEUR (Q1’25: 27 MEUR). Our 2026 adjusted EBIT estimate is 93 MEUR. We did not make significant changes at the adjusted EBIT level, but the increase in non-recurring items and financing cost estimates weighed on our 2026 estimates in particular. 2025 earnings were partly weighed down by temporary factors, such as the impact of US tariffs and the destocking of Vita, which we believe, together with new savings, will enable a clear earnings improvement in 2026-27.

New strategy and targets to be announced in May

In connection with its Q4 report, the company announced that it will host a CMD on May 12, where the new strategy and targets will be launched. We expect the company to announce these separately for the independently operating Fiskars and Vita segments. The company will finalize the legal separation into two companies within the group during Q1’26. After this, we see it as possible that Fiskars would seek to exit the Vita segment by listing it as an independent company or selling it. We can get indications of this at the CMD.

Valuation still high

Fiskars' 2026 valuation multiples (e.g., P/E 20x) are clearly above our acceptable levels, and multiples will only decrease to within our targeted levels in 2027. The DCF value is roughly at the level of our target price, and our sum-of-the-parts estimates are also below the current valuation.