Nilfisk Revenue Declines as Backlog Release Masks Underlying Growth
Event summary
- Nilfisk Holding A/S reported 2025 revenue of €996.3 million, a 3.1% decrease year-over-year.
- Organic revenue growth was 0.2%, but adjusted for a backlog release in the US, underlying growth was 3.2%.
- The company's EBITDA margin before special items decreased to 13.0% from 13.6% in 2024.
- Nilfisk divested its US high-pressure washer business, contributing to a net interest-bearing debt of €307.3 million.
- The company projects organic revenue growth of -1% to 2% and an EBIT margin of 7.0% to 9.0% for 2026.
The big picture
Nilfisk's results highlight the challenges faced by industrial equipment manufacturers navigating a turbulent macroeconomic environment. While the company has implemented cost-cutting measures and divested non-core assets, the decline in revenue and margin compression underscore the impact of external factors. The adjusted organic growth figure suggests underlying demand remains, but the company's future performance hinges on its ability to manage geopolitical risks and maintain pricing discipline.
What we're watching
- Growth Sustainability
- Whether Nilfisk can sustain the adjusted 3.2% organic growth rate as the US backlog effect fully dissipates remains to be seen, given the projected -1% to 2% growth for 2026.
- Margin Pressure
- The impact of tariffs and the need for continued operational improvements will likely keep pressure on Nilfisk's margins, making the 7.0%-9.0% EBIT margin target a key performance indicator.
- Geopolitical Risk
- Nilfisk's reliance on a 'stable economic climate' exposes the company to significant risk should trade wars intensify or trigger a recession, potentially derailing the 2026 outlook.
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