Managing the unexpected – the new normal

The year was characterised by geopolitical instability, escalating tariffs, other trade announcements and lower consumer purchasing power, affecting economies and supply chains worldwide. The revenue decreased slightly, profitability was good and cash flow was excellent. The net impact of US tariffs was around €20 million, due to the lag between tariff costs and associated price increases.

During 2025, we donated power generators to the value of €10 million as humanitarian aid to the people of Ukraine. During the war, we have approved donations totalling €40 million. We continue to condemn the Russian invasion of Ukraine, we stand with those affected by the violence, and we support calls for an immediate ceasefire and for Ukraine to remain a sovereign and democratic state.

On behalf of the board, I would like to convey our gratitude and appreciation to our dedicated employees for their outstanding performance and commitment.

Tetra Pak – resilient performance

Revenue decreased to €12.4 billion at prevailing rates, a decline of 0.3% at comparable rates and scope. Packaging Solutions sales decreased by 1.6% at comparable rates to deliver 174 billion packs globally, while Processing Solutions grew 5.7%. The lower volume was mainly due to declining consumption in China and South-East Asia.

Creating value for our customers through integrated food production is of utmost importance. A major milestone was the launch of Tetra Pak^® Factory OS^™, our next‑generation automation and digitalisation platform designed to make food production factories AI ready. Built as an open, modular and scalable ecosystem, Tetra Pak^® Factory OS^™ connects equipment, data and processes across plants to deliver real‑­time insights, increased efficiency and reduced waste. For customers facing rising costs and greater complexity, it provides a pathway to more agile, resilient and high‑performing operations.

We also accelerated development of our paper‑based barrier, developed to replace the aluminium foil layer in aseptic beverage cartons, taking further steps towards creating the world’s most sustainable food package. We introduced the world’s first juice packaging using this innovative barrier following on from our previous introduction of it for milk. This innovation will be supported by our continued investment in material development, including our recently announced new pilot facility in Lund, Sweden.

In 2026, we expect Tetra Pak to deliver a slight growth, but somewhat lower operating profit and good cash flow.

DeLaval – strong performance

Total net sales increased by 8% to €1.4 billion. An increase of 10% at comparable rates and scope. The aftermarket grew by 6% and the operating margin improved significantly despite increased investments in R&D, quality, market presence and a new business system. Order intake of capital goods reached an all-time high, mainly driven by automated milking systems in Europe and large rotary milking systems in the US. High milk prices and lower feed costs created favourable market conditions for many of our dairy farmer customers.

We innovate to enable farmers to operate more efficiently by producing more milk with less resources – to make dairy production more sustainable and profitable. In particular this drives demand for automation and digital services resulting in healthier herds. Our key product launch during the year was the DeLaval VMS^™ V300 2025 model with Flow Responsive^™ milking, which further enhances the milking capacity of our automatic milking robot. We also introduced next‑generation milk‑quality monitoring with our new DeLaval BioSensors Milk Cell Analysis (MCA) solution to help farmers manage cow health even more effectively.

The rejuvenation of our demonstration farm in Sweden has taken sustainability, animal welfare and milk quality to new heights and showcases what is possible for farms around the world. In particular, the expansion further enhances our capabilities to develop and test new solutions that can improve dairy farming. Following the successful inauguration of the new barns at Hamra Farm, which brought together 30 journalists from 10 countries, the resulting media coverage reached millions across leading outlets and social media channels. This strong visibility reinforces our market position and highlights the significant interest in modern dairy farming.

We enter 2026 with a record order book and we expect DeLaval to increase sales and continue delivering a good operating margin.

Sidel – outstanding performance

Revenue rose by 3% to €1.8 billion, an increase of 5% at comparable rates and scope. Services grew by 7% and the operating margin exceeded expectations reaching yet another new level. In 2025, we were in the final year of our three-year transformation programme, Leading Excellence. The results of the programme in combination with a favourable backlog at the beginning of the year contributed to an outstanding performance.

Sidel is favoured by several trends. Firstly, the macrotrend of sustainability works in Sidel’s favour, with collection rates, recyclability and recycled content making PET and the aseptic solution an attractive packaging alternative. Secondly, the technology conversion from hot fill to aseptic has gained momentum and is likely to continue. Finally, aseptic PET improved its competitiveness versus other packaging alternatives in 2025 thanks to the lower cost of resin and lightweighting.

Our most important launch in 2025 was the EvoBLOW Laser, used to heat preforms during the blow-moulding of PET bottles, which is redefining what’s possible in our industry today. The technology enables a new level of lightweighting, line efficiency and ease, while offering energy savings, increased bottle design flexibility and a major step forward for recycled PET (rPET). An exciting development was how we began combining our EvoBLOW Laser with our PET coating technology to deliver very lightweight bottles for carbonated beverages with an extended shelf life. In aseptic technology, our new Aseptic Predis X4^™ dry-preform sterilisation solution has already been adopted by major brand owners.

In a world where data is everything, our services are becoming increasingly digitalised with 95% of our new lines sold in 2025 connected to our Evo-ON^® software suite. Evo-ON is a unique cloud suite with built-in intelligence powered by AI that is designed to supervise and optimise any aspect of a customer’s line performance in real time.

At the start of 2026, Sidel launched its new and ambitious Sustainable Excellence three-year transformation programme that is focused on the enablers of sustainable growth to further boost innovation and create value.

During 2026, we expect Sidel to increase sales, deliver good operating margin and cash flow.

Growth, sustainability and innovation remain the focus for 2026

By continuing to focus on value, and by introducing new innovative products in 2026 and beyond, we will continue to support our customers to give retailers and consumers an outstanding offer and ultimately drive volume growth. During 2026, we forecast moderate sales growth, at comparable rates, a stable operating margin and lower cash flow.

Lars Renström

 

“All three industry groups have quality at the top of their agenda,
and it is a prerequisite for success in our industry. Our customers demand it,
and we will remain dedicated to delivering it.”