GPV Improves Profitability and Cash Flow in 2025 Despite Market Volatility

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Danish-based GPV, the second-largest European-headquartered EMS company, delivered improved profitability and significantly strengthened cash flow in 2025 in a market characterized by normalizing demand but also continued volatility from tariffs. Sales for the year amounted to DKK 8.7 billion, down 3% from 2024. Earnings (EBITDA) increased by 3% to DKK 641 million, reflecting steady margin improvement quarter by quarter during the year.

GPV, owned by Nasdaq Copenhagen-listed Danish industrial conglomerate Schouw & Co., reported Q4 2025 sales of DKK 2.1 billion, in line with Q4 2024, while earnings (EBITDA) in Q4 2025 increased by 23% to DKK 170 million. For full-year 2025, sales ended at DKK 8.7 billion compared to DKK 8.9 billion in 2024, and earnings (EBITDA) for the full year came to DKK 641 million compared to DKK 625 million in 2024. EBITDA for 2025 includes one-off restructuring costs of DKK 17 million related to optimization of the operational footprint and severance payments.

For 2025, GPV delivered a solid performance in a year characterized by normalizing demand and volatility from tariffs. Although sales decreased modestly, earnings improved quarter by quarter, supported by structural footprint optimization, enhanced efficiency, and disciplined cost control. The 2025 performance underscores the underlying strength of GPV’s business model and its ability to protect and gradually strengthen profitability as demand normalizes.

Operating cash flow for the full year increased significantly to DKK 744 million (2024: DKK 291 million). Working capital was reduced by 14% to DKK 2.3 billion, and ROIC excluding goodwill improved to 9.0% (2024: 8.1%).

“2025 was characterized by normalizing demand combined with continued volatility from tariffs and, at the same time, by consistent operational improvements. While overall demand remained flat, we are seeing early signs of recovery in certain segments, including Transportation and Railway, CleanTech, Measurement & Control, and HighTech Consumer, where demand is expected to increase by 5-8% in 2026. We strengthened our profitability throughout the year and significantly improved our cash flow and capital efficiency. This provides a solid foundation for our customers and for us as we enter 2026,” says Bo Lybæk, CEO of GPV.

Structural optimisation and operational progress

During 2025, GPV continued optimizing its global production footprint. Electronics activities in Slovakia were fully consolidated into the relatively newly established Piestany mega-site and the site in Nova Dubnica. Mechanics activities were consolidated at the site in Bangkok, Thailand, and cable-harness manufacturing was consolidated in Slovakia and Sri Lanka.

Expansions in Thailand and Slovakia were finalized during the year, and the first phase of the Mexico expansion was initiated. The final phase in Mexico is expected to be concluded in early 2027. These initiatives support GPV’s overall aim to have a strong setup in important regions and to support customers’ region-for-region strategies, ensuring capacity for future growth. The optimization initiatives are expected to deliver benefits through a lower cost base, increased efficiency and improved capacity utilization.

Defense is an established segment for GPV in which the Group has long-standing references, certifications, and specialized competencies. Based on this strong legacy, GPV is currently engaging more actively with several European and international defense-related customers.

The defense pipeline developed positively during 2025, and GPV is well positioned to support customers with high-reliability electronics, cable harnesses, and mechatronics solutions in this segment.

Market conditions and global supply chain

Demand normalized throughout 2025, with signs of growth toward the end of the year, supported by a strengthened order intake and a solid sales pipeline.

The global materials supply situation appears relatively stable overall. However, strong demand driven by AI and data center applications is tightening availability of some types of memory chips. Rising prices, longer lead times and allocation issues are expected to continue through 2026, and at this stage, no clear market relief is anticipated before 2027–2028.

GPV has therefore established a dedicated “Memory Task Force” and works closely with suppliers to support transparency and mitigation planning and with customers to be best possibly aligned with the actual demand situation.

“The current situation with memory components requires attention, and we stay close to both customers and suppliers. In the current situation, transparency and early planning are therefore crucial. Our strong supplier network and long-term customer collaboration are key strengths in this context,” says Bo Lybæk.

GPV enters 2026 with enhanced profitability and capacity readiness

Despite limited demand visibility and volatile market conditions, GPV enters 2026 with a strengthened platform.

For 2026, GPV expects sales in the range of DKK 8.5-9.0 billion, broadly in line with the 2025 level. Earnings (EBITDA) are expected in the range of DKK 690-750 million, reflecting continued margin improvement driven by structural optimization, efficiency gains, and improved capacity utilization.

“While we are prepared for continued volatility in the market, we are also better positioned than a year ago. With a leaner cost base and improved utilization, GPV stands strong, and we expect further earnings improvement in 2026,” concludes Bo Lybæk.