LEOS LEKELAND NORGE returned to a net profit of NOK 4.6m while operating profit fell

LEOS LEKELAND NORGE AS, a limited company based in Oslo, reported a net profit of NOK 4.6m for 2025 after a net loss of NOK 7.7m in 2024. The profit came without growth. Revenue fell 5.3% to NOK 134m from NOK 142m, and operating profit dropped to NOK 5.5m from NOK 14.9m, so the operating margin narrowed to 4.1% from 10.5%. Cash also shrank, to NOK 2.8m from NOK 18.3m a year earlier. Net result improved by NOK 12.3m even though the operating business earned less.

When net profit rises while operating profit falls, the difference sits below the operating line: financial items, tax or one-offs such as asset sales or released provisions. The accounts do not say which applied here. Equity rose to NOK 41.2m and the equity ratio reached 62.3%, so the balance sheet is steady. Still, the operating margin of 4.1% sits 3.0 pp below the median of 7.1% among 3 companies in the same industry. I would watch the cash line. A profit that arrives while the cash leaves deserves a second look.