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Introduction & Market Context
Dustin Group AB (DUST) presented its fourth quarter results for fiscal year 2024/25 on October 8, 2025, highlighting improved profitability despite challenging market conditions. The Nordic IT provider, which operates across the Nordics and Benelux regions, reported modest overall growth with significant divergence between its business segments. The company’s stock has struggled this year, trading at 1.91 SEK, near its 52-week low of 1.55 SEK and far below its 52-week high of 8.77 SEK.
Quarterly Performance Highlights
Dustin reported net sales of 5,056 MSEK for Q4 2024/25, representing a 1.4% increase compared to 4,988 MSEK in the same period last year. Organic growth reached 3.6%, with the Large Corporate and Public (LCP) segment showing robust performance at 7.0% organic growth, while the Small and Medium Business (SMB) segment declined by 6.3% (or -2.2% when adjusted for retroactive net accounting).
The company’s profitability metrics showed significant improvement, with adjusted EBITA reaching 83 MSEK, nearly tripling from 28 MSEK in Q4 2023/24. This resulted in an adjusted EBITA margin of 1.6%, up from 0.6% in the comparable quarter.
As shown in the following financial highlights chart:
The company’s gross profit remained relatively stable at 642 MSEK (compared to 644 MSEK), with a slight decrease in gross margin to 12.7% (from 12.9%). Cash flow from operating activities, while still negative at -73 MSEK, showed substantial improvement from the -355 MSEK reported in Q4 2023/24.
Detailed Financial Analysis
Dustin’s segment performance revealed contrasting trends. The SMB segment showed signs of stabilization from a low level, particularly in the Nordic markets, despite continued challenges from the geopolitical climate. Net sales in this segment declined by 7.9% year-over-year, but segment margin increased significantly to 2.9% from 0.7% in the comparable quarter.
The segment performance details are illustrated in the following chart:
Meanwhile, the LCP segment demonstrated strong growth, with net sales increasing by 4.6% year-over-year and segment margin improving to 2.1% from 1.4%. This growth was primarily driven by increased demand for Windows 11 upgrades and replacement of aging business computers in the Nordic markets.
The LCP segment’s performance is detailed in this chart:
Dustin’s efficiency measures have yielded tangible results, with total SG&A costs decreasing by 6.3% compared to Q4 2023/24. The company has reduced its average number of full-time employees by 10% over the past year and 13% over the past two years, adapting to market conditions.
The following chart illustrates the company’s efficiency measures and FTE reductions:
Cash flow analysis shows that while operating cash flow remained negative at -73 MSEK, it represented a substantial improvement from -355 MSEK in the comparable quarter. This negative cash flow was primarily attributed to temporary changes in working capital, with inventory increasing by 260 MSEK year-over-year to 1,086 MSEK. The company’s leverage ratio increased to 4.3x from 4.0x in FY 2023/24.
Strategic Initiatives
Dustin has implemented a sharpened strategic focus with a clear plan to increase profitability. The company has completed previously announced efficiency measures and reorganized to strengthen operational effectiveness. Management emphasized the high pace of change aimed at improving efficiency and focusing on business customers.
The company also announced updated sustainability targets approved by the Science Based Targets initiative (SBTi). These targets include reducing Scope 1 and 2 emissions by 50% by 2029/30 (from a 2023/24 baseline), reducing CO2e intensity in Scope 3 by 51.6%, and achieving net zero emissions by 2049/50.
The sustainability commitments are detailed in this slide:
Dustin’s business model positions the company as an aggregator between hardware and software vendors and its diverse customer base. The company serves approximately 10,000 large corporate and public sector customers, 100,000 SMB customers, and 200,000 B2C customers, with approximately 2 million orders annually.
An overview of Dustin’s business model and market position is illustrated here:
Forward-Looking Statements
Dustin noted that market recovery patterns are showing some divergence from historical norms. Typically, the SMB segment both declines and recovers earlier in economic cycles compared to LCP. Currently, LCP growth is being driven primarily by the Windows 11 transition, while SMB adoption of this trend has been slower.
The company also mentioned that while the replacement of aging business computers is a visible trend among LCP customers, the anticipated trend toward AI-optimized computers has not yet materialized in the market.
The following chart illustrates these market trends:
Dustin’s financial targets include EPS growth greater than 10%, leverage between 2.0-3.0x Net debt/EBITDA, and supporting targets of 8% organic growth for SMB and 5% for LCP. The company aims for segment margins greater than 6.5% for SMB and greater than 4.5% for LCP, indicating significant room for improvement from current levels.
Despite the challenging market conditions, Dustin sees signs of stabilization in the SMB segment, particularly in the Nordic markets, and expects to benefit from continued structural trends including the Windows 11 transition and eventual adoption of AI-optimized computers.
Full presentation:
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