Petri has released a new company report following the Q4 results. 
Sanoma’s operating result was well in line with our estimates in Q4, and the dividend proposal also matched our forecast. The earnings guidance provided for the current year also fell exactly within our expected range. The company’s earnings growth outlook for the coming years is very good, in relation to which the stock’s valuation is moderate. Thus, we reiterate our Buy rating for the stock. Reflecting minor forecast changes, we revise our target price to EUR 11.5 (prev. EUR 11.3). Sanoma’s CEO’s Q4 interview (Eng.) can be viewed at this link.
Quoted from the report:
Free cash flow has strengthened
Sanoma’s cash flow from operations strengthened to EUR 199 million in 2025, which, after normal capital expenditures, lease liability payments, and hybrid loan interest, corresponds to a free cash flow of EUR 117 million. As a result, the company’s net debt settled at EUR 486 million, which corresponds to 1.8x the adjusted EBITDA for the previous 12 months. Thus, within its financial position, the company is well-positioned for the proposed dividend increase to EUR 0.42 and the refinancing of the hybrid loan taking place in March. Even after these actions, and thanks to the accumulation of cash flow that continues to strengthen with earnings growth, the company estimates it has approximately EUR 300 million in headroom for acquisitions. The financial position already enables the company to make even a large acquisition.