Sanoma Corporation, Full-Year 2025 Result: Improved adjusted operating profit and free cash flow driven by Learning

Core Insights - Sanoma Corporation reported improved adjusted operating profit and free cash flow for the full year 2025, primarily driven by its Learning segment [1] Financial Performance - Q4 2025 net sales were EUR 225.8 million, a decrease of 6% from EUR 241.5 million in Q4 2024. The comparable net sales development for the Group was -7% [2] - For FY 2025, net sales totaled EUR 1,302.5 million, down 3% from EUR 1,344.8 million in FY 2024. The Group's comparable net sales development was -3% [4] - Adjusted operating profit for FY 2025 improved to EUR 188.2 million, up 5% from EUR 180.0 million in FY 2024. However, operating profit decreased to EUR 48.6 million from EUR 81.8 million in the previous year [4] - Free cash flow for FY 2025 increased to EUR 159.7 million, a 10% improvement from EUR 145.3 million in FY 2024 [4] Strategic Developments - Sanoma aims for high single-digit growth in adjusted operating profit from 2026 to 2030, with a leverage target adjusted to below 2.5 [4][5] - The company signed a EUR 220 million syndicated term loan facility in December 2025 to support its financial strategy [4] - The Learning segment's adjusted operating profit margin is expected to improve to clearly above 23% in 2026, driven by a more digital sales mix and improved cost base [7][14] Dividend Proposal - The Board proposes a dividend of EUR 0.42 per share for 2025, an increase of 8% from EUR 0.39 in 2024, reflecting 43% of the free cash flow [10][20] Outlook - For 2026, Sanoma expects net sales to be between EUR 1.29 billion and EUR 1.34 billion, with adjusted operating profit projected to be between EUR 205 million and EUR 225 million [5][14] - The demand for learning content is anticipated to increase due to curriculum renewals in various operating markets, while the advertising market in Finland is expected to remain stable [11][14] AI Integration - AI is becoming integral to Sanoma's operations, enhancing personalized learning pathways in the Learning segment and improving content delivery in Media Finland [6][15]