Stabilisation, discipline and a stronger foundation for the future
2025 was a year marked by continued weak market conditions, particularly in the heavy commercial vehicle sector, but also by a clear internal shift for LEAX. Following a period of extensive changes, the focus during the year has been on stabilising operations, strengthening cash flow and establishing a more sustainable cost structure, through LEAX profit improvement program, Action 100. Despite lower volumes compared with previous years, improvements show that the measures implemented are now taking effect and that the Group stands on a stronger operational footing for the future.
During the year, we have continued to improve productivity, adjust staffing levels and increase discipline in both production and procurement. These measures have gradually strengthened profitability and improved our resilience in a volatile market. The fourth quarter provided clear evidence of this trend, with improved margins and more stable production indicating that the new structure is beginning to take root within the organisation.
At the same time, we have continued to develop our strategic positioning. Demand within the defence industry has been strong and represents an increasingly important area for LEAX. With our technical expertise and global manufacturing platform, we see good opportunities to expand within this segment and provide advanced components and solutions to customers with high standards for quality, robustness and delivery precision. This development strengthens our long-term diversification and reduces our dependence on more cyclical market segments.
The market outlook during the year has been characterised by uncertainty regarding the economic cycle, the pace of electrification and geopolitics. In the short term, demand remains cautious, but we see signs that conditions are gradually improving. Despite the uncertain market situation, our assessment is that a certain recovery will take place from the second quarter of 2026 onwards. Further headwinds may arise as a result of the military conflict in the Middle East, with rising oil and commodity prices driving inflation. With the cost structure and operational discipline now in place, LEAX is better equipped to cope with such developments and to gradually strengthen profitability as volumes recover.
LEAX strategy remains unchanged: to build a more focused, resilient and sustainable industrial company. We continue to develop our customer relationships, invest selectively in technology and expertise, and strengthen our position in segments with structural growth. Through consistent efforts throughout the year, we have laid a more stable foundation for the next phase of the company’s development.
I would like to extend my warmest thanks to our employees for your commitment and professionalism during a year that has placed high demands on adaptability and focus. Together, we have taken important steps towards a stronger LEAX.
Roger Berggren, Group President and CEO
Telephone: +46 (0)70 655 99 71
E-mail: roger.berggren@leax.com
About LEAX
LEAX Group AB (publ) is the parent company of a group (“LEAX Group”) with approximately 900 employees. LEAX has operations in Köping, Falun and Falköping in Sweden, Riga and Rezekne in Latvia, Curitiba in Brazil, Detmold in Germany and Mezökövesd in Hungary. The Group designs, develops and industrializes advanced manufacturing solutions and superior products for global mobility and industrial markets. The Group had sales of SEK 1.8 billion in 2025.