MOVING FORWARD IN POWER AND MOTION
ANNUAL REPORT
HydraSpecma 2025
HydraSpecma A/S · Company reg. ( CVR ) no.: 87552411
The annual report is considered and approved
at the company’s annual general meeting at 16 April 2026
Conductor
Annual report 2025 | 1
Contents
Management's statement and auditor's report
Management’s Statement 2
Independent Auditor’s Report 3
Management’s report
Company information 6
Group overview 7
Key figures and financial ratios 8
Management’s commentary 10
Consolidated financial statements
Statements of income and comprehensive income 16
Balance sheet 17
Cash flow statement 19
Statement of changes in equity 20
Notes 21
Parent company financial statements
Statements of income and comprehensive income 61
Balance sheet 62
Cash flow statement 64
Statement of changes in equity 65
Notes 66
Annual report 2025 | 2
Executive management:
Board of Directors
Annual report 2025 | 3
Management's statement and auditor's report
Independent Auditor’s Report
Annual report 2025 | 4
Independent Auditor’s Report
Annual report 2025 | 5
Independent Auditor’s Report
Auditor’s Responsibilities for the Audit of the Financial Statements (continued)
CVR No 33 77 12 31
Annual report 2025 | 6
Management’s report
Company information
Tel.: +45 97 35 05 99
E-mail: HSDK@hydraspecma.com
Website: www.hydraspecma.com
Company reg. (CVR) no.: 87 55 24 11
Founded: 7 June 1978
Municipality of
registered office: Ringkøbing-Skjern
Board of Directors
Jens Bjerg Sørensen, Chairman
Peter Kjær
Kurt Bering Sørensen
Helle Marie Bay
Carsten Thygesen
Tommy Rahbek Nielsen
Executive Management
Morten Kjær Graakjær, Group CEO
Henrik Sillesen, Group Director – EVP
Auditors
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
Jens Chr. Skous Vej 1
8000 Aarhus C, Denmark
Date of annual general meeting
Annual General Meeting to be held on 16 April 2026 .
Annual report 2025 | 7
Management’s report
Overview of group companies
Subsidiaries
Associates
Passive Companies
HydraSpecma Renewables
(Tianjin) Co., LTD., China
100%
HydraSpecma ASIA Ltd.,
China
100%
Micron Specma India
(Pvt.) Ltd., India
25%
HydraSpecma BV,
Netherlands
100%
HydraSpecma Hydraulic U.S
Inc, USA
100%
HydraSpecma Hydraulic
(Shanghai) Co. Ltd, China,
100%
HydraSpecma Polska Sp.
Z.o.o, Poland
100%
Young Tech Company Ltd.,
South Korea
30%
NGIN A/S, Denmark
40%
HydraSpecma Norge AS
100%
HydraSpecma Component AB,
Sweden
100%
Group Board
HydraSpecma A/S,
Denmark
HydraSpecma Wiro AB,
Sweden
100%
HydraSpecma AB, Sweden
100%
HydraSpecma Produc-
tion BV, Netherlands
100%
HydraSpecma Samwon Ltd,
UK
100%
HydraSpecma Do Brasil
Mangueiras Hidraulicas
Ltda, Brazil, 90%
Specma Fastighets AB
100%
HydraSpecma OY, Finland
100%
HydraSpecma USA Inc.,
USA
100%
HydraSpecma Hydraulic
Systems (Tianjin) Co., Ltd,
China, 100%
HydraSpecma Hydraulics
India Pvt. Ltd., India, 100%
HydraSpecma Renewables
AB, Sweden
100%
HydraSpecma Renewables
inc., USA
100%
Annual report 2025 | 8
Management’s report
Key figures and financial ratios for the group
All amounts in DKK’000 2025 2024 2023 2022 2021
Revenue and income
Revenue 3.190,0 3.031,1 2.971,6 2.536,3 2.315,5
Gross profit 854,1 783,1 732,5 669,3 598,3
EBITDA 389,0 338,5 323,2 306,2 286,1
EBIT 250,2 202,8 199,7 211,4 191,0
Net financials (66,2) (66,5) (39,7) (13,0) (9,4)
Profit for the year 142,1 98,1 128,2 157,0 142,8
Invested capital and financing
Total non-current assets 1.162,8 1.219,6 1.257,7 654,6 691,0
Total current assets 1.675,5 1.528,3 1.560,2 1.290,5 1.274,6
Total assets 2.838,3 2.747,9 2.817,9 1.945,1 1.965,5
Investments in property, plant and equipment
34,1 76,0 165,7 54,8 83,7
Total equity 1.165,5 1.036,7 980,2 755,1 692,3
Non-current liabilities 420,7 427,3 758,2 461,3 432,1
Current liabilities 1.252,1 1.283,9 1.079,5 728,7 841,1
Net interest-bearing debt 770,5 957,5 1.099,9 654,8 714,5
Cash flows
Cash flows from operating activities 290,0 286,9 190,7 190,5 75,4
Cash flows from investing activities 2,8 (89,2) (646,3) (69,5) (62,3)
Cash flows from financing activities (262,9) (172,7) 502,0 (119,6) (5,0)
Cash flows for the year 29,8 25,1 46,4 1,4 8,2
Financial data
EBITDA margin 12,2% 11,2% 10,9% 12,1% 12,4%
Profit margin 7,8% 6,7% 6,7% 8,3% 8,2%
ROIC excluding goodwill 17,1% 13,5% 13,4% 17,6% 17,5%
ROIC including goodwill 14,5% 11,6% 11,5% 16,0% 15,7%
Current ratio 133,8% 119,0% 144,5% 177,1% 151,5%
Equity ratio 41,1% 37,7% 34,8% 38,8% 35,2%
Return on equity 12,9% 9,7% 14,8% 21,7% 22,5%
Average number of employees 1.560 1.466 1.452 1.274 1.195
Annual report 2025 | 9
Accounting policies
The key figures and financial ratios provided in the preceding table were calculated as follows:
EBITA
Earnings before Interest, Taxes and
Amortazation
EBITDA margin:
Profit margin
ROIC excluding goodwill:
ROIC including goodwill:
Current ratio:
Equity ratio:
Return on equity:
EBITDA x 100
Revenue
EBIT x 100
Revenue
EBITA
Avg. Invested capital excluding goodwill
EBITA
Avg. Invested capital including goodwill
Current assets x 100
Current debt
Total equity at year end x 100
Total assets
Profit for the year x 100
Average equity
Annual report 2025 | 10
Management commentary
The group main activities
HydraSpecma is a trading and engineering company specialised in designing and constructing state-of-the-
art hydraulic and electric systems, including turnkey solutions in cooling, filtration and lubrication, as well as
fluid conveyance with pipes, hoses, connectors and fittings. HydraSpecma serves industry sectors such as
Wind Turbines, Commercial Vehicles, Construction Equipment, Marine, Defence, Material Handling, Agricul-
ture, Forestry, and many others.
Headquartered in Skjern, Denmark, HydraSpecma employs more than 1,600 people in 11 countries world-
wide. The company is owned by A/S Schouw & Co., Nasdaq Copenhagen listed company.
HydraSpecma divide activities into three divisions, Renewables, Global OEM and Nordic IAM & OEM, operat-
ing in the following business segments:
> Renewables:
> Global OEM:
Products and systems directly connected to the Renewables in-
dustry, with focus on Wind turbines, Solar and Power-to-X pro-
duction as well as the connected aftermarket.
High volume hydraulic systems and fluid conveyance solutions
for customers with a global reach and comprehensive quality re-
quirements, inside the segments mobile hydraulics and power
systems, to customers from the truck, bus, Construction Equip-
ment, Material Handling, Marine, Steel & Mining, Defence indus-
try.
> IAM & OEM:
Hydraulic Systems, fluid conveyance solutions and electric solu-
tions for our customers with primarily a national reach and higher
demands in regard to proximity and availability, both national
manufacturers as well as walk-in customers in our Nordic Store
set-up.
Headlines for the Group in 2025
Year 2025
HydraSpecma has generated a revenue growth above 5% in 2025 compared with 2024. All divisions have
contributed to the growth. The Global OEM Division has recovered, after a few challenging years, and has
realised a growth on nearly 9%. The growth is driven by the customer segments Material Handling, Energy,
Steel & Mining, Defence and Construction Equipment. The Renewables Division continue with a stable growth
of nearly 5%, where HydraSpecma has succeed to maintain the shares at the larger Western Wind turbine
manufactures. In Nordic IAM & OEM Division, we have seen a moderate growth of 2%. HydraSpecma OY, in
Finland, has recovered after several years with stagnating to decreasing activity. The recovery is coming from
both new customers and a general market recovery. Activity in the rest of the Division has stagnated in 2025.
The market has been challenged in 2025, but neither of the companies have lost market share during the year.
Investments made in recent years in supply chain, facilities, new machines and automatization, have signifi-
cantly enhanced HydraSpecma's agility, efficiency and footprint flexibility.
Annual report 2025 | 11
Management commentary
Year 2025 (continued)
HydraSpecma has scaled its resources to meet the significant increase in demands for new products and
solutions from both existing and new customers, especially in the Global OEM Division.
HydraSpecma has experienced increasing customer demand in Central Europe. In response to this demand,
but also with the aim of optimising production, HydraSpecma has during 2026 relocated certain production
activities to the new factory in Stargard, Poland. HydraSpecma is currently finalising the relocation, which is
expected to be completed in Q1 2026. The relocation has entailed one-off costs of around DKK 26 million in
2025.
To ensure capacity to support the expected growth in Asia-Pacific, HydraSpecma have signed a lease contract
for a new facility in Tianjin, China of a 22,000 m2. The construction is progressing as planned and is expected
to be finalised in Q2 2026. The two existing sites in Tianjin will be consolidated into this new facility, which is
built to HydraSpecma’s specifications and will include solar panels and heating pumps to enable zero-emission
production in China.
HydraSpecma has sold the old facility in Poland, generating a profit around DKK 14 million.
Some of HydraSpecma’s customers are experiencing increasing price pressure from Asian manufacturers,
especially customers in the Renewables Division. HydraSpecma has responded with optimisation and supply
chain improvements, and by establishing effective, agile and automated facilities. HydraSpecma will maintain
efforts to strengthen supply chain, R&D, efficiency, footprint and processes in general, in order to remain rel-
evant to the customers.
The small Danish company Dansk Afgratningsteknik A/S, of which HydraSpecma acquired the remaining 40%
in 2024, has been merged into HydraSpecma A/S. Additionally, the merger of the two Renewables companies
in Tianjin, China, was finalised in Q1 2025.
P&L 2025
HydraSpecma generated revenue of DKK 3,190 million in 2025, up 5% from DKK 3,031 million last year.
EBITDA in 2025 was DKK 389 million, which is a 15% increase from DKK 339 million in 2024. EBITDA was
supported by a one-off profit of DKK 14 million from the sale of an old facility in Poland, but at the same time,
earnings were impacted by one-off costs for more than DKK 30 million related to the consolidation of production
in Stargard, and other cost of goods sold. Excluding these net one-off items, EBITDA for 2025 would have
reflected a year-on-year increase of more than 19%.
Profit before tax for 2025 was DKK 185 million, compared to DKK 136 million in 2024. The profit after tax was
DKK 142 million, compared to DKK 98 million in the previous year.
Revenue for 2025 was within the span of the original guidance. The year’s EBITDA performance was signifi-
cantly above than the original guidance of DKK 340-370 million.
The annual result is considered satisfactory.
Investing activity in 2025
Investment activities during the year included automation, capacity expansion, safety and replacement of
equipment investments. HydraSpecma also capitalized significant new development projects for customers.
The investment in new product & system development follows a robust stage-gate model, with activated de-
velopment projects continually re-evaluated. As a result, HydraSpecma adjusted activated development
costs by more than DKK 1 million in 2025 for projects deemed uncertain.
The net Investment in 2025 has been reduces with the sale of the “old” facility in Stargard, Poland.
Balance sheet, cash flows and interest-bearing debt in 2025
Working capital increased by DKK 17 million from DKK 884 million on 31 December 2024 to DKK 901 million
on 31 December 2025. Driven by increase of inventory and account receivables as an effect of the growth in
activity.
Annual report 2025 | 12
Management commentary
Balance sheet, cash flows and interest-bearing debt in 2025 (continued)
The company funds ongoing capital needs through the credit facilities of its ultimate parent company Schouw
& Co.
Cash flows from operations for 2025 was DKK 290 million which is at the same level as last year, but higher
than expected.
The return on invested capital (ROIC) excluding goodwill improved to 17,1% on 31 December 2025 from 13,5%
at 31 December 2024.
Equity improved by DKK 129 million reaching DKK 1.166 million after a DKK 40 million dividend payment to
the parent company. The return on equity for the year was 12,9%, compared with 9,7% last year.
Events subsequent to the financial year-end
There have not been events subsequent to the financial year-end.
Outlook for 2026
The geopolitical tensions continue to cause significant market uncertainties. Some of HydraSpecma’s cus-
tomer segments are providing cautious forecasts for the coming period, while other customers expect an in-
crease in activity levels, but overall, the uncertainties lead to a higher-than-normal risk of changes or post-
ponements of projects.
However, HydraSpecma’s order book remains strong. The Renewables Division is expected to maintain the
level of activity seen in 2025, and the Global OEM Division is expected to continue its growth, driven by market
improvements, increased share of wallet, and additional business from new customers. Growth is expected,
in particular, within construction equipment, material handling, commercial vehicles, and defence, while de-
mand in the forestry segment is expected to remain subdued in 2026. Finally, the Nordic OEM/IAM markets in
Denmark, Norway, and Sweden are expected to recover.
As a result, HydraSpecma expects to generate revenue in the range of DKK 3.1–3.4 billion in 2026 and EBITDA
of DKK 400–440 million.
Capital resources
The company is predominately financed by resources of the parent company Schouw & Co. as well as a
number of committed and to a lesser extent uncommitted credit facilities.
The parent company’s source of financing is primarily composed of a syndicated banking facility, which in
December 2020 was refinanced with a total facility framework of DKK 3,275 million. The facility expires April
2027 and has an outstanding of DKK 1.145 million.
In April 2019 and in November 2023, Schouw & Co. issued Schuldschein transactions of EUR 136 million, and
EUR 225 million. The amount outstanding on the Schuldscheins is EUR 58 million (DKK 359 million) which
expiries in April 2026, November 2026, November 2028 and November 2030.
In December 2021, a loan was established for a total of DKK 400 million with Nordic Investment Bank for
specific capacity and development investments. The loan is amortizing and has an outstanding of DKK 267
million and expires in December 2028.
In June 2024, Schouw & Co. issued a bond in the Norwegian bond market with a nominal value of NOK 1,300
million. The bond was further supplemented with an additional NOK 500 million in September 2024 to a total
of NOK 1,800 million (DKK 1,161 million). To eliminate any currency risk, the nominal amount and all future
interest payments is swapped to DKK.
Annual report 2025 | 13
Management commentary
Capital resources (continued)
In 2025, Schouw & Co. established a series of term loans totaling DKK 1,500 million with expiry in April 2027.
The company, like other major subsidiaries in Schouw & Co., co-guarantees the aforementioned facilities to-
taling DKK 6,561 million, where of DKK 4,432 million is utilized per 31/12-2025.
Debtor risk
Debtor creditworthiness is carefully monitored on an ongoing basis, and we perform in-depth credit assess-
ments of new customers and ongoing assessments of existing customers based on the risk in recent years.
We have insured some of our customers’ debts in some of our companies. For several years, HydraSpecma
has not recorded any material debtor losses.
Furthermore, debtor insurance regarding existing and new customer portfolios is reviewed on a current basis.
Risk factors
HydraSpecma has prepared a risk assessment of its business and IT-related matters. Based on the risk as-
sessment, the company has prepared action plans for mitigating risks in specific areas.
Financial risks are described in note 24.
Financial risks
As a consequence of its operations, investments and financing, the Group is exposed to changes in the level
of interest and exchange rates. The Parent Company manages the financial risks of the Group centrally and
also coordinates the cash management of the Group, including funding and investment of surplus liquidity.
The Group pursues a Board-approved finance policy operating with a low risk profile so that currency exposure,
interest rate exposure and credit risks arise only based on commercial matters.
Foreign exchange risks
The Group is affected by changes in exchange rates as foreign subsidiaries’ results and equity at year-end
are translated into DKK on the basis of average exchange rates and the exchange rate at the balance sheet
date, respectively. The Group’s currency exposure is primarily covered by an internal cash pool.
IT
HydraSpecma continued the focus on strengthening IT security during 2025, at both user and system levels,
on enhancing communications between group companies, reducing the number of ERP systems and imple-
menting a joint infrastructure for all group companies. HydraSpecma will be NIS2 compliant in H1 2026.
R&D operations
On a regular basis, the company develops products within its main business areas in collaboration with cus-
tomers to provide solutions for new or amended, large or small systems as well as product optimisation solu-
tions to improve customer processes. Some of the solutions are developed for the customers and others are
developed with customers. R&D projects also include purely electronic and hybrid solutions for Power & Mo-
tion involving both hydraulic and electric components. We have a limited own development of products within
cooling. During 2025 HydraSpecma has obtained 2 patents, which there is a large interest for Renewables
customers.
Quality assurance
HydraSpecma holds ISO certification to current standards, and all companies are certified to ISO 9001:2015.
The companies that are suppliers to Commercial Vehicle are also certified to IATF 16949.
Quality targets are applied in all parts of the supply chain, and new targets are set every year with defined
responsibilities. The work and follow-up on these targets contribute to ongoing improvements. Quality assur-
ance efforts also include preventive activities.
Annual report 2025 | 14
Management commentary
Knowledge resources
It is an essential prerequisite for the continued development of our business that we are able to attract, retain,
develop and motivate employees who have the necessary skills and capability. Important elements to support
this include the delegation of responsibility and competencies as well as cross-organisational solutions.
Corporate responsibility and risk assessment
HydraSpecma has defined the group’s goals in terms of human rights, social and employee-related matters,
anti-corruption, business ethics as well as climate and the environment in cooperation with the parent company
Schouw & Co.
For HydraSpecma’s statutory reports on corporate responsibility and risk assessment pursuant to section 99a
of the Danish Financial Statements Act, please refer to the statutory report of Schouw & Co. The report and
complementary reports are available on HydraSpecma’s website:
Social issues and labour conditions
At HydraSpecma, we believe that results are created by people. We are committed to being a responsible
employer providing proper employment conditions, appropriate health and safety standards and a motivational
working environment for our employees.
> Accordingly, we do not accept child labour.
> We have committed to providing a safe and healthy working environment and, to that end, we take the
necessary steps to prevent industrial injuries.
> We respect the freedom of association and the right to collective bargaining.
> We observe applicable laws, rules and agreements on working hours, wages and salaries and holi-
days.
HydraSpecma’s code of conduct can be found on the HydraSpecma website.
https://app.complycloud.com/public/external-document?id=d91b522f01bd41a6be8f08aef3075fc5
Human rights
HydraSpecma has business units in a number of countries around the world. Regardless of which country we
are in, we are committed to observing human rights and to treating our employees with dignity and respect.
We support and respect human rights as set out in the UN Universal Declaration of Human Rights and in the
conventions and recommendations of the ILO. All major companies of the HydraSpecma group are certified
to ISO 45001.
HydraSpecma’s code of conduct can be found on the HydraSpecma website.
https://www.hydraspecma.com/store/dk/en/cms/en/about-us/policies
Anti-corruption and business ethics
HydraSpecma endeavours to maintain a high level of integrity and demonstrate ethical conduct. We combat
all forms of corruption, including bribery and facilitation payments.
Environmental matters and climate impact
The companies of the HydraSpecma group are involved in large-scale processing of commodities, and we
recognise the environmental impact of our production processes. Our ESG approach to climate and the envi-
ronment goes hand in hand with appropriate business acumen. We endeavour to protect the environment and
to continually reduce our emissions relative to production output.
HydraSpecma have joint a Cooperate power purchase agreement with Schouw & Co and other Schouw com-
panies.
Annual report 2025 | 15
Management commentary
Environmental matters and climate impact (continued)
In 2025, HydraSpecma earned the EcoVadis Silver rating. HydraSpecma will in 2026 commit to Science Base
Target initiatives, just as HydraSpecma remains a member of the UN Global Compact.
HydraSpecma will install solar panels at the new production facility in Tianjin, China All major manufacturing
companies of the HydraSpecma group are certified to ISO 14001.
Our goals are to:
> reduce the overall environmental footprint of our value chain relative to production output
> reduce our energy consumption and carbon emissions relative to production output
> achieve more efficient use of materials
> reduce waste and increase recycling relative to production output.
HydraSpecma’s Environmental policy can be found on the HydraSpecma website.
https://www.hydraspecma.com/store/dk/en/cms/en/about-us/sustainability-esg
Data ethics
At HydraSpecma, we believe that maintaining the highest standards of data integrity and transparency is es-
sential to gaining the trust of our business partners, employees and the general public.
HydraSpecma considers data ethics to be a core value for the way we run our business, and that a culture of
accountability is essential for success in a data-driven world that grows more and more complex with the
increasing use of advanced data.
For HydraSpecma’s statutory report on its data ethics policy pursuant to section 99d of the Danish Financial
Statements Act, please refer to the statutory report of Schouw & Co. in that company’s ESG report. The re-
port is available on HydraSpecma’s website:
https://www.hydraspecma.com/store/dk/en/cms/en/about-us/sustainability-esg
1 January - 31 December
Note
2025 2024
1 Revenue
2 Cost of sales
(2.335.925 ) (2.247.953 )
Gross profit
4 Other operating income
2 Distribution costs
(448.855 ) (418.103 )
2, 3 Administrative expenses
(170.413 ) (164.763 )
4 Other operating expenses
(22 ) (85 )
EBIT
5 Profit after tax in associates
6 Financial income
7 Financial expenses
(72.282 ) (74.747 )
Profit before tax
8 Tax on profit/loss for the year
(42.361 ) (38.024 )
Profit for the year
Attributable to:
Parent company shareholders
Proposed dividend
Non-controlling interests
(246 ) (671 )
Profit for the year
Statement of comprehensive income
Items that can be reclassified to the income statement:
Foreign exchange adjustments of foreign subsidiaries
Value adjustment of hedging instruments for the year
(187 ) (856 )
Other comprehensive income from associates
(565 ) (457 )
Other adjustments recognised directly in equity
8 Tax on other comprehensive income
Other comprehensive income after tax
Profit for the year
Total recognised comprehensive income
Attributable to:
Parent company shareholders
Non-controlling interests
(246 ) (671 )
Total recognised comprehensive income
Statements of income and comprehensive income
All amounts in DKK’000
Annual report 2025 | 16
Consolidated balance sheet
at 31 December
Note
Assets
31.12.2025 31.12.2024
Goodwill
Finished development projects
Development projects in progress
Customer relations
Brands
Know-how
IT projects
9
Intangible assets
Land and buildings
Plant and machinery
Other fixtures and fittings, tools and equipment
Assets under construction, etc.
2, 10
Property, plant and equipment
5 Equity investments in associates
11 Lease assets
14 Deferred tax
Securities
13 Receivables
Other non-current assets
Total non-current assets
12 Inventories
13 Receivables
18 Income tax receivable
22 Cash and cash equivalents
Total current assets
Total assets
All amounts in DKK’000
Annual report 2025 | 17
Consolidated balance sheet
at 31 December
Note
Liabilities and equity
31.12.2025 31.12.2024
Share capital
Hedge transaction reserve
(589 ) (443 )
Exchange-adjustment reserve
(82.170 ) (108.968 )
Retained earnings
Proposed dividend
Equity attributable to parent company shareholders
Non-controlling interests
(1.005 ) (763 )
Total equity
14 Deferred tax
15 Provisions
16 Credit institutions
16 Debt to parent company
Non-current liabilities
16 Current portion of non-current liabilities
16 Credit institutions
16 Debt to parent company
17 Trade payables and other payables
15 Provisions
18 Income tax
Current liabilities
Total liabilities
Total equity and liabilities
23 - 31
Notes without reference
All amounts in DKK’000
Annual report 2025 | 18
Consolidated cash flow statement
1 January - 31 December
Note
2025 2024
Profit before tax 184.502 136.132
Adjustment for non-cash operating items etc.:
2
Depreciation, amortisation and impairment losses 138.809 135.763
Other operating items, net (12.910 ) 23.268
Provisions 18.910 3.374
5
Profit after tax in associates (577 ) 135
6
Financial income (6.043 ) (8.247 )
7
Financial expenses 72.282 74.747
Cash flows from operations before changes in working capital 394.973 365.172
19
Changes in working capital (8.252 ) 24.307
Cash flows from operations before interest and tax 386.721 389.479
Interest received 2.494 3.451
Interest paid (48.642 ) (63.101 )
Cash flows from ordinary operations 340.573 329.829
18
Income tax paid (50.623 ) (42.902 )
Cash flows from operating activities 289.950 286.927
20
Purchase of intangible assets (6.879 ) (8.518 )
20
Purchase of property, plant and equipment (34.080 ) (75.974 )
Sale of property, plant and equipment 43.741 1.272
Acquisition of minority interests in subsidiaries 0 (3.869 )
21
Acquisitions 0 (2.070 )
Cash flows from investing activities 2.782 (89.159 )
Loan financing:
Repayment of non-current liabilities (47.132 ) (49.945 )
Increase/repayment of amounts owed to group companies (176.047 ) (96.543 )
Increase/repayment of bank overdrafts 269 (1.204 )
Shareholders:
Dividends paid (40.000 ) (25.000 )
Cash flows from financing activities (262.910 ) (172.692 )
Cash flows for the year 29.822 25.076
Cash and cash equivalents at 1 January 101.425 73.938
Value adjustment of cash and cash equivalents (7.898 ) 2.411
22
Cash and cash equivalents at 31 December 123.349 101.425
All amounts in DKK’000
Annual report 2025 | 19
Consolidated statement of changes in equity
At 31 December
Share
capital
Hedge
transac-
tion
reserve
Exchange-
adjustment
reserve
Retained
earnings
Proposed
dividend
Total
Non-
controlling
interests
Equity
Equity at 1 January 2024 30.000 225 (96.803 ) 1.017.547 25.000 975.969 4.208 980.177
Changes in equity in 2024
Tax on changes in equity 0 188 0 0 0 188 0 188
Profit for the year 0 0 0 58.779 40.000 98.779 (671 ) 98.108
Capital contribution 0 0 0 0 (25.000 ) (25.000 ) 0 (25.000 )
Distributed dividends 0 0 0 0 0 0 0 0
Total changes in equity in 2024 0 0 0 0 (25.000 ) (25.000 ) 0 (25.000 )
Equity at 31 December 2024 30.000 (443 ) (108.968 ) 1.076.864 40.000 1.037.453 (763 ) 1.036.690
Changes in equity in 2025
Tax on changes in equity 0 41 0 0 0 41 0 41
Profit for the year 0 0 0 92.387 50.000 142.387 (246 ) 142.141
Distributed dividends 0 0 0 0 (40.000 ) (40.000 ) 0 (40.000 )
Total changes in equity in 2025 0 0 0 0 (40.000 ) (40.000 ) 0 (40.000 )
Equity at 31 December 2025 30.000 (589 ) (82.170 ) 1.169.251 50.000 1.166.492 (1.005 ) 1.165.487
The share capital comprises 3,000 shares of DKK 10,000 each.
No special rights are attached to any share.
The share capital is fully paid up.
Total comprehensive income
Foreign exchange adjustments
of entities with functional cur-
rencies other than Danish kroner
Value adjustment of hedging
instruments for the year
Value adjustment of hedging
instruments for the year
Foreign exchange adjustments
of entities with functional cur-
rencies other than Danish kroner
Other comprehensive income,
associates
Total comprehensive income
Other adjustments recognised
in equity
Other comprehensive income,
associates
All amounts in DKK’000
Annual report 2025 | 20
Notes to the consolidated financial statements
1 January – 31 December
Note
1 Revenue
Segments:
Global OEM
division
Local
IAM/OEM
division
Renewables
division
Total
Nordic region
510.637 893.411 341.013 1.745.061
Rest of Europe
404.743 33.296 278.451 716.490
Rest of world
153.557 14.500 560.371 728.428
Revenue i alt 1.068.937 941.207 1.179.835 3.189.979
Segments:
Global OEM
division
Local
IAM/OEM
division
Renewables
division
Total
Nordic region
470.621 888.785 339.122 1.698.528
Rest of Europe
371.145 17.361 217.455 605.961
Rest of world
142.678 12.145 571.761 726.584
Revenue i alt 984.444 918.291 1.128.338 3.031.073
2
Costs
2025 2024
Cost of sales
Cost of sales for the year includes costs of goods sold in the amount of 1.864.003 1.813.422
Cost of sales for the year includes inventory write-downs in the amount of 5.121 30.600
(5.021) (6.818)
Staff costs
Wages, salaries and fees
553.850 495.853
Defined contribution pension plans
61.809 55.950
Other social security costs
86.662 80.094
Share-based payment
2.114 3.435
Total staff costs recognised in the income statement 704.435 635.332
Staff costs are recognised as follows:
Production
331.022 291.218
Distribution
294.126 275.121
Administration
79.287 68.993
Total staff costs recognised in the income statement 704.435 635.332
Average no. of employees
1.560 1.466
Staff costs include the following amounts for the Executive Management and senior managers: sala-
ries and bonuses (current) of DKK 16,756 thousand (2024: DKK 10,952 thousand), pension contribu-
tions of DKK 2,044 thousand (2024: DKK 1,743 thousand) and share-based payment of DKK 2.114
thousand (2024: DKK 3,435 thousand), totalling DKK 20,914 thousand (2024: DKK 16,130 thousand).
Executive Management is covered by a 3-year long-term bonus program, which is settled in cash.
Fullfillment of certain targets related to sales volume, EBITDA, NWC and ROIC determines the size
of the bonus. Staff costs also include remuneration of the Board of Directors of DKK 775 thousand
(2024: DKK 483 thousand). Total remuneration of Management amounted to DKK 21,689 thousand
(2024: DKK 16,613 thousand).
2025
2024
Cost of sales for the year includes reversed inventory write-downs due to
sales in the amount of
All amounts in DKK’000
Annual report 2025 | 21
Notes to the consolidated financial statements
1 January – 31 December
Note
2 Costs (continued)
Share-based payment: Share option programme
Outstanding
options
Execu-
tive
Manage-
ment
Other Total
Exercise
price
(DKK) *)
Fair
value
(DKK)
per
option **)
Total fair
value
(DKK
’000) **)
Exercisa-
ble from
Exercisa-
ble until
Granted in 2021 32.000 16.000 48.000 678,19 125,37 6.018 March 24 April 25
Granted in 2022 32.000 16.000 48.000 527,07 68,35 3.281 March 25 April 26
Granted in 2023 32.000 22.000 54.000 577,50 96,55 5.214 March 26 April 27
Total outstanding
options at 31
December 2024
96.000 54.000 150.000
Lapsed (from 2021
grant)
(32.000) (16.000) (48.000)
Exercised (from
2022 grant)
(27.000) (16.000) (43.000)
Total outstanding
options at 31
December 2025
37.000 22.000 59.000
In 2025, 43,000 options were exercised at an average price of 537.34.
*) On exercise after four years (at the latest possible date)
**) At the date of grant
Expected volatility
Expected term
Expected dividend
per share
Risk-free interest
rate
The expected volatility is calculated on the basis of 12 months’ historical volatility based on average
prices. If the option holders have not exercised their share options within the period specified, the
share options will lapse without any compensation to the holders. Exercise of the share options is
subject to the holders being in continuing employment during the above-mentioned periods. If the
share option holder leaves the Company’s employ before a share option vests, the holder may in
some cases have a right to exercise the share options early during a four-week period following
Schouw & Co.’s next following profit announcement. In the event of early exercise, the number of
share options will be reduced proportionately.
15 kr.
47 mo.
25,03%
2023 grant
no grants
2022 grant
2,66%
no grants
no grants
no grants
2025 grant
no grants
The Executive Management and senior managers of the HydraSpecma Group are covered by the
share option programme of the parent company, Schouw & Co. The programme entitles participants
to acquire shares in Aktieselskabet Schouw & Co. at a price based on the officially quoted price at
the date of grant plus a premium from the date of grant until the date of exercise. The exercise price
is adjusted by deduction of ordinary dividends, which cannot exceed the accrued interest. Costs
relating to the option programme are calculated on the basis of the Black & Scholes model and are
expensed under staff costs on a straight-line basis over the option period and settled with the parent
company. There were no options granted in 2025.
no grants
2024 grant
24,82%
-0,17%
14 kr.
49 mo.
no grants
no grants
All amounts in DKK’000
Annual report 2025 | 22
Notes to the consolidated financial statements
1 January - 31 December
Note
2025 2024
2 Costs (continued)
Depreciation, amortisation and impairment losses
Amortisation of intangible assets 44.702 43.403
Depreciation of property, plant and equipment 50.428 49.563
Depreciation of lease assets 43.679 42.797
Total depreciation, amortisation and impairment losses 138.809 135.763
Depreciation/amortisation and impairment is recognised in the income statement as follows:
Production 44.696 52.179
Distribution 50.431 69.720
Administration 43.682 13.864
Total depreciation, amortisation and impairment losses 138.809 135.763
3 Fees to auditors appointed by the general meeting
Statutory audit fees 781 1.106
Fees for tax and VAT-related services 183 20
Non-audit services 85 364
Total fees, auditors appointed by the general meeting 1.049 1.490
Statutory audit fees, other auditors 1.852 1.461
Non-audit services, other auditors 272 181
Fees for tax and VAT-related services, other auditors 82 35
Total fees, other auditors 2.206 1.677
4 Other operating income and expenses
Gains on disposal of property, plant and equipment and intangible assets 14.523 488
Government grants 791 0
Other operating income 86 2.110
Total other operating income 15.400 2.598
Loss on disposal of property, plant and equipment and intangible assets (22) 68
Other operating expenses 0 17
Total other operating expenses (22) 85
All amounts in DKK’000
Annual report 2025 | 23
Notes to the consolidated financial statements
1 January - 31 December
Note
2025 2024
5 Equity investments in associates
Cost at 1 January 6.869 6.869
Cost at 31 December 6.869 6.869
Adjustments at 1 January 4.029 4.621
Foreign exchange adjustments (565) (457)
Share of profit for the year 577 (135)
Adjustments at 31 December 4.041 4.029
Carrying amount at 31 December 10.910 10.898
The Group has the following associates:
Equity
interest
Equity
interest
Name Registered office
31.12.2025 31.12.2024
Young Tech Company Ltd. Changwon, South Korea 30% 30%
Micron Specma India (Pvt.) Ltd. Rohtak, Haryana, India 25% 25%
NGIN A/S Aarhus, Denmark 40% 40%
2025 2024
6 Financial income
Interest income, group companies 1.542 1.717
Foreign exchange adjustments 3.533 4.796
Other interest income 968 1.734
Total financial income 6.043 8.247
7 Financial expenses
Interest expenses, group companies 39.626 49.702
Foreign exchange adjustments 23.596 11.646
Interest expenses, lease debt 4.589 5.146
Other interest expenses 4.471 8.253
Total financial expenses 72.282 74.747
For lease assets we refer to note 11 and for lease liabilities we refer to note 16.
All amounts in DKK’000
Annual report 2025 | 24
Notes to the consolidated financial statements
1 January - 31 December
Note
2025 2024
8 Tax on profit/loss for the year
Tax on the profit for the year is specified as follows:
Tax on profit/loss for the year 42.361 38.024
Tax on other comprehensive income (41) (188)
Total tax 42.320 37.836
Tax on the profit for the year has been calculated as follows:
Current tax 46.795 41.461
Deferred tax (5.499) (4.399)
Adjustment of prior-year tax charge 1.065 962
Total tax recognised in the income statement 42.361 38.024
Specification of the tax on the profit for the year:
Computed 22,0% tax on profit before tax 40.590 29.949
Adjustment of prior-year tax charge 1.065 962
Tax provisions (for uncertain tax treatment) 0 2.150
Tax loss this year not recognized 1.256 2.397
Tax in foreign subsidiaries adjusted relative to 22% (466) (70)
Tax effect of non-deductible costs and non-taxable income (84) 2.636
Total tax recognised in the income statement 42.361 38.024
Effective tax rate 23,0% 27,9%
Before tax Tax After tax
Foreign exchange adjustments of foreign units, etc. 27.363 0 27.363
(187) 41 (146)
Other comprehensive income from associates (565) 0 (565)
26.611 41 26.652
Before tax Tax After tax
Foreign exchange adjustments of foreign units, etc. (11.708) 0 (11.708)
Hedging instruments for the year (856) 188 (668)
Other comprehensive income from associates (457) 0 (457)
(13.021) 188 (12.833)
Total tax on items recognised in other comprehensive
income
Total tax on items recognised in other comprehensive
income
2024
2025
Value adjustment of hedging instruments transferred to
revenue
Tax on items recognised in other comprehensive
income
Tax on items recognised in other comprehensive
income
All amounts in DKK’000
Annual report 2025 | 25
Notes to the consolidated financial statements
at 31 December
Note
9 Intangible assets
Goodwill
Finished
develop-
ment
projects
Develop-
ment
projects
in
progress
Custo-
mer
relations
Brands
Know-
how
IT
projects
Total
Cost at 1 January 293.878 27.335 11.166 208.836 50.697 150.075 54.287 796.274
Foreign exchange
adjustments
11.544 0 0 11.388 3.068 9.083 834 35.917
Additions 0 0 6.426 0 0 0 6.426
Additions by
purchase
0 0 0 0 0 0 453 453
Disposals 0 0 0 0 (22.258) (22.258)
Transferred/
reclassified
0 8.964 (8.964) 0 0 0 (2.918) (2.918)
Cost at 31
December
305.422 36.299 8.628 220.224 53.765 159.158 30.398 813.894
Amortisation and
impairment at 1
January
0 (11.432) 0 (92.413) (45.618) (30.256) (46.534) (226.253)
Foreign exchange
adjustments
0 0 0 (5.286) (2.882) (2.132) (661) (10.961)
Amortisation 0 (7.553) 0 (18.240) (5.265) (10.918) (2.726) (44.702)
Amortisation of
disposed assets
0 0 0 0 0 22.259 22.259
Transferred/
reclassified
0 0 0 33 0 45 2.840 2.918
Amortisation and
impairment at 31
December
0 (18.985) 0 (115.906) (53.765) (43.261) (24.822) (256.739)
Carrying amount
at 31 December
305.422 17.314 8.628 104.318 0 115.897 5.576 557.155
Amortised over 3 years
10-15
years
10 years
10-15
years
3-10
years
31.12.2025
All amounts in DKK’000
Annual report 2025 | 26
Notes to the consolidated financial statements
at 31 December
Note
9 Intangible assets (continued)
Goodwill
Finished
develop-
ment
projects
Develop-
ment
projects
in
progress
Custo-
mer
relations
Brands
Know-
how
IT
projects
Total
Cost at 1 January 299.546 8.913 21.624 214.838 52.323 154.888 54.202 806.334
Foreign exchange
adjustments
(5.668) 0 0 (6.002) (1.626) (4.813) (484) (18.593)
Additions 0 0 7.964 0 0 0 554 8.518
Additions by
purchase
0 0 0 0 0 0 0 0
Transferred/
reclassified
0 18.422 (18.422) 0 0 0 17 17
Cost at 31
December
293.878 27.335 11.166 208.836 50.697 150.075 54.289 796.276
Amortisation and
impairment at 1
January
0 (4.585) 0 (78.008) (41.851) (21.732) (41.166) (187.342)
Foreign exchange
adjustments
0 0 0 2.194 1.315 705 293 4.507
Amortisation 0 (6.847) 0 (16.599) (5.082) (9.229) (5.646) (43.403)
Transferred/
reclassified
0 0 0 0 0 0 (17) (17)
Amortisation and
impairment at 31
December
0 (11.432) 0 (92.413) (45.618) (30.256) (46.536) (226.255)
Carrying amount
at 31 December
293.878 15.903 11.166 116.423 5.079 119.819 7.753 570.021
Amortised over
3 years
10-15
years
10 years
10-15
years
3-10
years
31.12.2024
All amounts in DKK’000
Annual report 2025 | 27
Notes to the consolidated financial statements
at 31 December
Note
9 Intangible assets (continued)
Terminal
growth
Revenue
growth
WACC
after tax
WACC
before tax
2025 2,0% 8,0% 7,7% 9,6%
2024 2,0% 8,0% 8,0% 9,9%
The Management of HydraSpecma Group has tested the value in use of the carrying amount against
goodwill in the companies the group. In the tests performed, the Management has estimated the
expected free cash flow for a five-year budget and forecast period of the years 2025-2029. The free
cash flow after tax has been applied to a discounted cash flow model (the “value in use” principle) for
the purpose of assessing each CGU value which subsequently is compared against the carrying
amount recognised in HydraSpecma Group consolidated financial statements. As of 31 December
2025, HydraSpecma Group has recognised goodwill at a total value of 305 million compared with
DKK 294 million in 2024, where DKK 169 million are allocated to the Renewable division (acquisition
of Ymer Technology AB), and the rest to the combined Global OEM and Local IAM/OEM division
(acquisition of Specma AB).
HydraSpecma had other recognised intangible assets of DKK 252 million at 31 December 2025.
During the year, there were additions of Customer relations, Know-how and Development projects in
connection with acquisitions and IT projects. There are no indications of impairment of other
intangible assets.
The discount rate (WACC) was estimated on the basis of available market data and an assessment
of the risk profile of the entity. Specifically, a risk-free interest rate based on the current yield of a 10-
year government bond in the relevant geography plus an estimated market-risk premium are used to
estimate the required rate of return on equity. An estimated risk premium is added, depending on geo-
graphy. The required rate of return on debt is based on an estimated credit assessment of the entity
and the current interest rate level. The required rates of return on debt and equity, as set out below,
are weighted using a capital structure based on a group of company peers.
The impairment test performed at 31 December 2025 did not result in a write-down.
Sensitivity analyses were performed as part of the tests to determine if reduced cash flows or a
higher WACC would produce evidence of impairment. The sensitivity analyses showed that likely
changes in basic assumptions would not produce evidence of impairment.
Assumptions
All amounts in DKK’000
Annual report 2025 | 28
Notes to the consolidated financial statements
at 31 December
Note
10 Property, plant and equipment
Land and
buildings
Plant and
machinery
Other
fixtures and
fittings, tools
and
equipment
Assets
under
construction
Total
Cost at 1 January 451.810 292.022 130.168 13.254 887.254
Foreign exchange adjustments 6.666 7.967 1.961 670 17.264
Additions 4.005 18.354 7.358 4.363 34.080
Disposals (32.818) (2.073) (5.068) 0 (39.959)
Transferred/reclassified (353) 6.291 (11.243) (6.057) (11.362)
Cost at 31 December 429.310 322.561 123.176 12.230 887.277
(100.896) (186.394) (89.991) 0 (377.281)
Foreign exchange adjustments (238) (4.945) (1.831) 0 (7.014)
3.786 1.794 4.698 0 10.278
Depreciation (12.507) (24.295) (13.626) 0 (50.428)
Transferred/reclassified 353 0 11.009 0 11.362
(109.502) (213.840) (89.741) 0 (413.083)
319.808 108.721 33.435 12.230 474.194
Depreciated over
10-50 years 5-10 years 3-7 years
0 0
31.12.2025
Liability at 31 December re.
purchase of property,
machinery and equipment
Carrying amount at 31
December
Depreciation and impairment at
1 January
Depreciation and impairment of
assets disposed of
Depreciation and impairment at
31 December
All amounts in DKK’000
Annual report 2025 | 29
Notes to the consolidated financial statements
at 31 December
Note
10 Property, plant and equipment (continued)
Land and
buildings
Plant and
machinery
Other
fixtures and
fittings, tools
and
equipment
Assets
under
construction
Total
Cost at 1 January 422.293 261.668 116.170 21.202 821.333
Foreign exchange adjustments 126 (2.448) (1.135) (184) (3.641)
0 0 1.284 0 1.284
Additions 26.354 28.570 14.596 6.454 75.974
Disposals (1.476) (1.768) (4.502) 0 (7.746)
Transferred/reclassified 4.513 6.000 3.755 (14.218) 50
Cost at 31 December 451.810 292.022 130.168 13.254 887.254
(90.395) (167.893) (79.033) 0 (337.321)
Foreign exchange adjustments (35) 2.000 808 0 2.773
1.469 1.352 4.059 0 6.880
Depreciation (11.935) (22.643) (14.985) 0 (49.563)
Transferred/reclassified 0 790 (840) 0 (50)
(100.896) (186.394) (89.991) 0 (377.281)
350.914 105.628 40.177 13.254 509.973
Depreciated over
10-50 years 5-10 years 3-7 years
0 0
Depreciation and impairment at
1 January
Depreciation and impairment of
assets disposed of
Depreciation and impairment at
31 December
Carrying amount at 31
December
Additions on company
acquisitions
31.12.2024
Liability at 31 December re.
purchase of property,
machinery and equipment
All amounts in DKK’000
Annual report 2025 | 30
Notes to the consolidated financial statements
at 31 December
Note
11 Lease assets
Property
Other fix-
tures and
fittings, tools
and equip-
ment
Total
Cost at 1 January 247.672 23.542 271.214
Foreign exchange adjustments 685 656 1.341
Additions 9.650 2.772 12.422
Disposals (17.662) (3.515) (21.177)
Modifications 20.484 394 20.878
Cost at 31 December 260.829 23.849 284.678
Depreciation and impairment at 1 January (142.516) (10.255) (152.771)
Foreign exchange adjustments (1.429) (290) (1.719)
Depreciation and impairment of assets disposed of 17.289 3.331 20.620
Depreciation (37.008) (6.671) (43.679)
Depreciation and impairment at 31 December (163.664) (13.885) (177.549)
Carrying amount at 31 December 97.165 9.964 107.129
Depreciated over
5-10 years 2-7 years
Services
Low-value
leases
Leases with
terms of less
than 1 year
Total
Less than 1 year 527 1.414 0 1.941
1-5 years 322 1.518 0 1.840
More than 5 years 0 0 0 0
Total
849 2.932 0 3.781
Lease liabilities recognised in the balance sheet are detailed in note 16.
Services
Low-value
leases
Leases with
terms of less
than 1 year
Total
Expense for the year 529 3.180 0 3.709
Liability at 31 December for leases entered into 0
Lease payments amount to DKK 52.469 thousand (2024: DKK 49.027 thousand)
For lease interests we refer to note 7 and for lease liabilities we refer to note 16.
31.12.2025
31.12.2025
Lease liabilities not recognised in the balance
sheet
Recorded in the income statement
All amounts in DKK’000
Annual report 2025 | 31
Notes to the consolidated financial statements
at 31 December
Note
11 Lease assets (comtinued)
Property
Other fix-
tures and
fittings, tools
and equip-
ment
Total
Cost at 1 January 234.206 18.543 252.749
Foreign exchange adjustments (1.171) (216) (1.387)
Additions 6.717 11.325 18.042
Disposals 0 (5.418) (5.418)
Modifications 7.920 (692) 7.228
Cost at 31 December 247.672 23.542 271.214
Depreciation and impairment at 1 January (106.681) (9.385) (116.066)
Foreign exchange adjustments 835 103 938
Depreciation and impairment of assets disposed of 0 5.154 5.154
Depreciation (36.670) (6.127) (42.797)
Depreciation and impairment at 31 December (142.516) (10.255) (152.771)
Carrying amount at 31 December 105.156 13.287 118.443
Depreciated over
5-10 years 2-7 years
Services
Low-value
leases
Leases with
terms of less
than 1 year
Total
Less than 1 year 531 908 0 1.439
1-5 years 538 1.434 0 1.972
More than 5 years 0 0 0 0
Total
1.069 2.342 0 3.411
Recorded in the income statement
Services
Low-value
leases
Leases with
terms of less
than 1 year
Total
Expense for the year 348 1.696 0 2.044
31.12.2025 31.12.2024
12 Inventories
Raw materials and consumables 143.070 143.797
Work in progress 43.638 27.304
Finished goods and goods for resale 491.461 478.081
Total inventories 678.169 649.182
Cost of inventories for which impairment losses have been recognised 153.019 166.984
Accumulated impairment losses on inventories (103.131) (115.216)
Net sales value 49.888 51.768
31.12.2024
31.12.2024
Lease liabilities not recognised in the balance
sheet
All amounts in DKK’000
Annual report 2025 | 32
Notes to the consolidated financial statements
at 31 December
Note
31.12.2025 31.12.2024
13 Receivables
Receivables (non-current) 5.548 6.244
Trade receivables 734.759 692.140
Other receivables 23.415 25.637
Receivable from parent company 74.059 32.122
Prepaid expenses 20.662 18.041
Total receivables 858.443 774.184
Impairment losses on receivables:
Impairment losses 1 January (3.747) (4.198)
Foreign exchange adjustments 28 (18)
Impairment losses for the year (249) 44
Realised loss 259 425
Total impairment losses (3.709) (3.747)
Trade receivables are specified as follows:
31.12.2025 1-30 days 31-90 days >90 days Total
Trade receivables 647.708 65.141 15.343 10.276 738.468
0 (2.383) (676) (650) (3.709)
Trade receivables, net 647.708 62.758 14.667 9.626 734.759
Proportion of total receivables expected to be settled
99,5%
0,0% 3,7% 4,4% 6,3% 0,5%
31.12.2024 1-30 days 31-90 days >90 days Total
Trade receivables 602.524 66.970 12.751 13.642 695.887
0 (584) (2.500) (663) (3.747)
Trade receivables, net 602.524 66.386 10.251 12.979 692.140
Proportion of total receivables expected to be settled
99,5%
Impairment rate
0,0% 0,9% 19,6% 4,9% 0,5%
Due between (days)
Impairment losses on trade
receivables
Not fallen due
Impairment rate
Due between (days)
No significant trade receivables are impaired at the balance sheet date, and 99,5% of receivables are
expected to be settled. There is a constant follow-up on overdue debtors.
No collateral has been received for trade receivables.
Not fallen due
Impairment losses on trade
receivables
Impairment losses on receivables have been calculated according the credit loss-model under IFRS
9. As the Group’s principal customers are well-capitalised global enterprises, receivables have not
historically been subject to significant impairment losses.
All amounts in DKK’000
Annual report 2025 | 33
Notes to the consolidated financial statements
at 31 December
Note
31.12.2025 31.12.2024
14
Deferred tax
Deferred tax at 1 January 77.995 84.975
Foreign exchange adjustments 4.023 (2.393)
Deferred tax adjustment at 1 January (1.491) 0
Deferred tax for the year recognised in profit/loss for the year (5.499) (4.399)
Deferred tax for the year recognised in equity (41) (188)
Deferred tax at 31 December, net 74.987 77.995
Deferred tax Deferred tax is recognised as follows in the statement of financial position:
Deferred tax (asset) (7.819) (4.039)
Deferred tax (liability) 82.805 82.034
Deferred tax at 31 December, net 74.987 77.995
Deferred tax pertains to:
Intangible assets 53.273 59.404
Property, plant and equipment 7.575 8.723
Current assets (3.405) (3.318)
Equity 20.420 14.586
Provisions (5.623) 0
Other liabilities 2.747 (1.400)
Deferred tax at 31 December, net 74.987 77.995
Tax losses with an aggregate value for tax purposes of DKK 5,928 thousand (2024: DKK 5,609
thousand) have not been recognised because it is considered unlikely that the deferred tax assets will
be realised. The tax loss can be carried forward indefinitely.
Capitalised deferred tax is expected to be utilised by being set off against future positive taxable
income.
The group assesses that Pillar II regulation will have no impact on HydraSpecma, and no tax liabilities
related to this have therefore been recognised.
All amounts in DKK’000
Annual report 2025 | 34
Notes to the consolidated financial statements
at 31 December
Note
14 Deferred tax (continued)
Change in deferred tax
Balance at
1 January
Foreign
exchange
adjustments
Additions on
acquisitions
Recognised
in the profit
for the year
Recognised
in equity
Balance at
31
December
Intangible assets 59.404 1.054 0 (7.185) 0 53.273
Property, plant and
equipment
8.723 401 0 (1.549) 0 7.575
Receivables (340) 260 0 (1.093) 0 (1.173)
Inventories (3.482) 1.714 0 (1.014) 0 (2.782)
Other assets 504 16 0 30 0 550
Equity 14.586 439 0 5.436 (41) 20.420
Provisions
0 125 0 (5.748) 0 (5.623)
Other liabilities (1.400) 14 0 4.133 0 2.747
Total change in
deferred tax
77.995 4.023 0 (6.990) (41) 74.987
Balance at
1 January
Foreign
exchange
adjustments
Additions on
acquisitions
Recognised
in the profit
for the year
Recognised
in equity
Balance at
31
December
Intangible assets 68.789 (1.927) 0 (7.458) 0 59.404
Property, plant and
equipment
8.173 (283) 0 833 0 8.723
Receivables 295 11 0 (646) 0 (340)
Inventories (4.318) 113 0 723 0 (3.482)
Other assets 466 (16) 0 54 0 504
Equity 12.939 (336) 0 2.171 (188) 14.586
Other liabilities (1.369) 45 0 (76) 0 (1.400)
Total change in
deferred tax
84.975 (2.393) 0 (4.399) (188) 77.995
31.12.2025
31.12.2024
All amounts in DKK’000
Annual report 2025 | 35
Notes to the consolidated financial statements
at 31 December
Note
31.12.2025 31.12.2024
15 Provisions
Provisions at 1 January 26.155 23.162
Foreign exchange adjustments 564 (390)
Used for the year (8.066) (11.501)
Reversed for the year 0 (135)
Provided for the year 27.094 15.019
Provisions at 31 December 45.747 26.155
Expected due dates:
Non-current 17.283 9.670
Current 28.464 16.485
Provisions at 31 December 45.747 26.155
31.12.2025 31.12.2024
16 Interest-bearing debt
Debt recognised in the balance sheet:
Mortgage debt (non-current) 50.484 53.176
Lease debt (non-current) 70.106 82.395
Debt to parent company (non-current) 200.000 200.000
Total recognised as non-current interest-bearing debt 320.590 335.571
Mortgage debt (current) 2.641 2.450
Lease debt (current) 42.486 42.776
Credit institutions (current) 172 94
Debt to parent company (current) 602.038 710.198
Recognised in current interest-bearing debt 647.337 755.518
Total interest-bearing debt 967.927 1.091.089
Fair value of interest-bearing debt 968.435 1.091.139
For lease interests we refer to note 7 and for lease assets we refer to note 11.
Provisions include contractual guarantees of 1-5 years.
All amounts in DKK’000
Annual report 2025 | 36
Notes to the consolidated financial statements
at 31 December
Note
16 Interest-bearing debt (continued)
Maturity profile of interest-bearing debt
31.12.2025 31.12.2024 31.12.2025 31.12.2024 31.12.2025 31.12.2024
Overdraft facilities
without planned
repayment
602.210 710.292 0 0 602.210 710.292
Less than 1 year 58.401 59.656 13.274 14.430 45.127 45.226
1-5 years 297.827 320.415 17.460 29.121 280.367 291.294
More than 5 years 45.607 50.594 5.384 6.317 40.223 44.277
Total 1.004.045 1.140.957 36.118 49.868 967.927 1.091.089
Spot rate used for floating rate loans in the table above.
Whereoff leasing amounts to:
Less than 1 year 45.617 46.673 3.131 3.897 42.486 42.776
1-5 years 72.050 85.024 2.872 4.168 69.178 80.856
More than 5 years 938 1.573 10 34 928 1.539
Total 118.605 133.270 6.013 8.099 112.592 125.171
Interest rate risk
Fixed rate Floating rate Total Fixed rate Floating rate Total
Interest-bearing
debt
0 967.927 967.927 0 1.091.089 1.091.089
Net exposure 0 967.927 967.927 0 1.091.089 1.091.089
31.12.2025 31.12.2024
17 Trade payables and other payables
Trade payables 395.899 362.346
Customer prepayments 3.101 134
Other debt 157.136 138.115
Total trade payables and other payables 556.136 500.595
Substantially all trade payables and other payables fall due within one year.
Carrying amount
The Group hedges parts of the interest rate risk on its debt subject to a case-by-case assessment. In
addition to expectations for interest rate developments, such assessment includes the amount of the
total floating rate debt relative to equity. Hedging normally consists of interest rate swaps and interest
rate caps. All interest rate swaps and rate caps are used to hedge underlying loans/credit facilities.
There were no interest rate swaps at 31 December 2025.
A +/- 1% change in the interest rate level would increase/reduce financial expenses by approx. DKK
9.7 million.
Principal repayment
Interest
31.12.2025
31.12.2024
All amounts in DKK’000
Annual report 2025 | 37
Notes to the consolidated financial statements
1 January - 31 December
Note 31.12.2025 31.12.2024
18 Income tax
Income tax payable at 1 January
1.623 1.597
Foreign exchange adjustments (1.262) 505
Adjustment related to prior years 2.556 962
Current tax for the year 46.795 41.461
Income tax paid during the year (50.623) (42.902)
Income tax at 31 December (911) 1.623
Which is specified as follows:
Income tax receivable (21.110) (9.727)
Income tax payable 20.199 11.350
Income tax at 31 December (911) 1.623
19 Changes in working capital
Change in inventories (24.582) 70.855
Change in receivables (45.041) (56.244)
Change in trade payables and other payables 61.371 9.696
Total changes in working capital (8.252) 24.307
20 Adjustment for non-cash transactions
Purchase of intangible assets, see note 9 6.426 8.518
Paid relating to purchase of intangible assets 6.426 8.518
Purchase of property, plant and equipment, see note 10 34.080 75.974
Paid relating to purchase property plant and equipment 34.080 75.974
Financial liabilities incurred 12.422 18.042
of which lease debt (12.422) (18.042)
Proceeds from incurring financial liabilities 0 0
All amounts in DKK’000
Annual report 2025 | 38
Notes to the consolidated financial statements
at 31 December
Note
2025 2024
21
Acquisition of subsidiaries and operations
Specification of acquired assets and liabilities at the acquisition date:
Intangible assets 0 0
Property, plant and equipment 0 1.284
Other financial assets 0 0
Inventories 0 3.870
Receivables 0 1.091
Cash and cash equivalents 0 808
Trade payables 0 (2.850)
Other debt 0 (1.325)
Deferred tax 0 0
Net assets acquired 0 2.878
Goodwill 0 0
Consideration 0 2.878
Of which cash and cash equivalents 0 (808)
Cash consideration 0 2.070
22 Cash and cash equivalents
Cash and cash equivalents 123.349 101.425
Total cash and cash equivalents 123.349 101.425
23 Categories of financial assets and liabilities
Financial assets
Non-current assets
Other investments and securities (other shareholdings)
21 21
Available-for-sale financial assets *)
21 21
Other receivables
5.548 6.244
Other receivables at amortised cost
5.548 6.244
Current assets
Trade receivables
734.759 692.140
Other receivables
23.415 25.637
Receivable from parent company
74.059 32.122
Cash and cash equivalents
123.349 101.425
Receivables
955.582 851.324
Other receivables (derivative financial instruments)
0 0
Trading portfolio **)
0 0
On 21. June 2024, the Group acquired 100% of Agder Slangeservice AS' business in order to
strengthen the Group’s position in the IAM market in Norway.
All amounts in DKK’000
Annual report 2025 | 39
Notes to the consolidated financial statements
at 31 December
Note
2025 2024
23 Categories of financial assets and liabilities (continued)
Financial liabilities
Non-current liabilities
Debt to mortgage-credit institutions
50.484 53.176
Other credit institutions
70.106 82.395
Debt to parent company
200.000 200.000
Financial liabilities at amortised cost
320.590 335.571
Current liabilities
Debt to mortgage-credit institutions
2.641 2.450
Debt to parent company
602.038 710.198
Other credit institutions
42.658 42.870
Trade payables and other debt
555.385 440.959
Financial liabilities at amortised cost
1.202.722 1.196.477
Other debt (derivative financial instruments)
751 564
Trading portfolio **)
751 564
*) Unlisted shares, stated at estimated value (level 3)
24 Financial risk
The Company’s risk management policy
Interest rate risks are described in greater detail in note 16.
Currency risk
A 5% depreciation of currencies in which group companies have significant exposure, based on the
companies’ functional currency, would impact profit for the year by about DKK 8,485 thousand (2024:
DKK 2,220 thousand). The amounts are based on the group companies’ balance sheet items at 31
December 2025.
Due to the currency peg to the Euro, no real currency risk is considered to exist between DKK and
EUR, and this is therefore omitted from the table below.
Set out in the table below is the Group's overall foreign exchange position at 31 December,
determined by aggregating the gross currency risks of the individual group companies.
It is the Group’s policy to hedge significant transaction risks related to future income streams not
naturally covered through purchases and sales. As a general rule, currency risks are hedged by way
of forward contracts with a duration of up to 12 months. The market value of currency hedges was a
liability of DKK 751 thousand (2024: An asset of DKK 564 thousand).
**) Financial instruments valued by external credit institutions using generally accepted valuation
techniques on the basis of observable data (level 2).
Due to the nature of its operations, investments and financing, the Group is exposed to changes in
exchange rates and interest rates. The Group's policy is to not actively speculate in financial risk.
Accordingly, the Group’s financial management exclusively involves the management of financial risk
relating to its operations and investments.
All amounts in DKK’000
Annual report 2025 | 40
Notes to the consolidated financial statements
at 31 December
Note
24 Financial risk (continued)
The Group’s currency risks in the balance sheet at 31 December 2025 translated to DKK
Currency
Securities
and cash
Cash and
receivables
Liabilities
Position
before
hedging
Hedged
using
financial
instruments
Position
after
hedging
USD/DKK 0 3.669 (6.331) (2.662) 0 (2.662)
SEK/DKK 0 106.239 (2.844) 103.395 0 103.395
NOK/DKK 0 4.218 0 4.218 0 4.218
CHF/SEK 0 0 (12) (12) 0 (12)
EUR/GBP 0 13.609 (1.524) 12.085 0 12.085
USD/GBP 0 15.758 (942) 14.816 0 14.816
DKK/SEK 0 965 (6.269) (5.304) 0 (5.304)
GBP/DKK 0 0 (434) (434) 0 (434)
USD/CNY 0 21.997 (41) 21.956 0 21.956
USD/SEK 0 8.202 (11.293) (3.091) 0 (3.091)
EUR/SEK 0 174.909 (96.369) 78.540 0 78.540
EUR/CNY 0 2.330 (23.524) (21.194) 0 (21.194)
EUR/USD 0 0 0 (407) 0 (407)
EUR/INR 0 1.348 (53.875) (52.527) 0 (52.527)
CNY/INR 0 0 (48.251) (48.251) 0 (48.251)
EUR/PLN 0 70.504 (51.571) 18.933 0 18.933
EUR/NOK 0 4 (215) (211) 0 (211)
EUR/DKK 0 0 0 (3.635) 0 (3.635)
DKK/CNY 0 2 (1.197) (1.195) 0 (1.195)
DKK/PLN 0 0 0 (5) 0 (5)
DKK/NOK 0 0 0 (173) 0 (173)
USD/PLN 0 0 0 (731) 0 (731)
SEK/BRL 0 312 (25.643) (25.331) 0 (25.331)
SEK/PLN 0 0 (6.883) (6.883) 0 (6.883)
SEK/EUR 0 0 (276) (276) 0 (276)
PLN/SEK 0 0 (3.252) (3.252) 0 (3.252)
USD/EUR 0 1.053 (28) 1.025 0 1.025
GBP/SEK 0 1.855 (1.671) 184 0 184
GBP/PLN 0 0 0 (9) 0 (9)
NOK/SEK 0 6.369 0 6.369 0 6.369
SEK/NOK 0 624 (66) 558 0 558
CNY/DKK 0 61.185 (879) 60.306 (28.907) 31.399
CNY/USD 0 0 (197) (197) 0 (197)
CNY/SEK 0 54.537 (113) 54.424 0 54.424
CAD/DKK 0 0 (2.039) (2.039) 0 (2.039)
CAD/SEK 0 0 (938) (938) 0 (938)
SEK/GBP 0 562 0 562 0 562
All amounts in DKK’000
Annual report 2025 | 41
Notes to the consolidated financial statements
at 31 December
Note
24 Financial risk (continued)
The Group’s currency risks in the balance sheet at 31 December 2024 translated to DKK
Currency
Securities
and cash
Cash and
receivables
Liabilities
Position
before
hedging
Hedged
using
financial
instruments
Position
after
hedging
USD/DKK 0 7.142 (11.493) (4.351) 0 (4.351)
SEK/DKK 0 113.192 (75.802) 37.390 0 37.390
NOK/DKK 0 4.968 0 4.968 0 4.968
CHF/SEK 0 0 (1) (1) 0 (1)
EUR/GBP 0 16.702 (12.583) 4.119 0 4.119
USD/GBP 0 15.911 (540) 15.371 0 15.371
DKK/SEK 0 365 (5.163) (4.798) 0 (4.798)
GBP/DKK 0 0 (1.000) (1.000) 0 (1.000)
USD/CNY 0 12.730 (11.407) 1.323 0 1.323
USD/SEK 0 6.084 (10.638) (4.554) 0 (4.554)
EUR/SEK 0 172.262 (113.835) 58.427 0 58.427
EUR/CNY 0 7.723 (31.696) (23.973) 0 (23.973)
EUR/INR 0 83 (38.077) (37.994) 0 (37.994)
CNY/INR 0 0 (502) (502) 0 (502)
EUR/PLN 0 40.982 (35.183) 5.799 0 5.799
DKK/CNY 0 1 (1.747) (1.746) 0 (1.746)
DKK/PLN 0 0 (16) (16) 0 (16)
USD/PLN 0 0 (103) (103) 0 (103)
SEK/BRL 0 306 (24.611) (24.305) 0 (24.305)
SEK/PLN 0 0 (1.587) (1.587) 0 (1.587)
PLN/SEK 0 1.002 (75) 927 0 927
USD/EUR 0 2.029 0 2.029 0 2.029
GBP/SEK 0 413 (2.392) (1.979) 0 (1.979)
NOK/SEK 0 3.456 0 3.456 0 3.456
SEK/NOK 0 0 (1.942) (1.942) 0 (1.942)
CNY/DKK 0 11.669 (2.255) 9.414 (9.412) 2
CNY/SEK 0 21.551 (244) 21.307 0 21.307
CAD/DKK 0 0 (1.867) (1.867) 0 (1.867)
All amounts in DKK’000
Annual report 2025 | 42
Notes to the consolidated financial statements
at 31 December
Note
24 Financial risk (continued)
Credit risk
Provisions for bad debts are detailed in note 13.
Capital management
Liquidity risk
Maturity profiles etc. are detailed in note 16.
At 31 December, the Group’s cash resources consisted of:
31.12.2025 31.12.2024
Available operating credits 1.111.766 1.031.546
Drawn operating credits (602.210) (710.292)
Amount in the cash pool scheme 74.059 32.122
Cash and cash equivalents 123.349 101.425
706.964 454.801
It is the Group’s policy as a general rule to distribute the profit for the year after tax, in due
consideration of changes to the balance sheet and special liquidity requirements with respect to
investments. Dividend payments must be made in due consideration of the target level of equity.
To ensure that the Group always has the necessary capital resources to capitalise on any
opportunities for investment that may arise and to be able to settle liabilities, the Group has entered
into a number of agreements.
As a result of their short-term nature, the fair value of trade receivables, other receivables, trade
payables and other payables are deemed to correspond to the carrying amount.
The Group’s credit risk is primarily related to trade receivables. The Group seeks to avoid significant
exposure to individual customers or business partners. The Group’s policy for undertaking credit risks
involves an ongoing credit assessment of all major customers.
The Group regularly assesses the need for adjustment of the capital structure to weigh up the higher
required rate of return against the increased uncertainty related to debt financing. The ratio of equity
to total liabilities was 41,1% at 31 December 2025 (2024: 37,7%).
All amounts in DKK’000
Annual report 2025 | 43
Notes to the consolidated financial statements
at 31 December
25 NIBD
Change in NIBD for the year:
1 January Cash flows Acquisitions
For. ex.
adjustments
Other
31
December
Interest-bearing assets:
Current
receivables, group
companies
32.122 41.937 0 0 0 74.059
Cash and cash
equivalents
101.425 29.822 0 (7.898) 0 123.349
Interest-bearing liabilities:
Debt to mortgage-
credit institutions
(non-current)
53.176 0 0 0 (2.692) 50.484
Lease debt
(non-current)
82.395 0 0 (912) (11.377) 70.106
Non-current debt
to group
companies
200.000 0 0 0 0 200.000
Current portion of
non-current
liabilities
2.450 (2.164) 0 0 2.355 2.641
Lease debt
(current)
42.776 (44.968) 0 0 44.678 42.486
Current debt to
group companies
710.198 (134.110) 0 25.613 337 602.038
Credit institutions
(current)
94 269 0 (191) 0 172
NIBD 957.542 (252.732) 0 32.408 33.301 770.519
Non-cash items
All amounts in DKK’000
Annual report 2025 | 44
Notes to the consolidated financial statements
at 31 December
Note
26 Operating leases and rent commitments
Property Machinery Cars Total
Falling due within 0-1 years 225 994 195 1.414
Falling due within 1-5 years 0 1.518 0 1.518
Falling due after 5 years 0 0 0 0
Total 225 2.512 195 2.932
Property Machinery Cars Total
Falling due within 0-1 years 217 691 0 908
Falling due within 1-5 years 0 1.434 0 1.434
Falling due after 5 years 0 0 0 0
Total 217 2.125 0 2.342
27 Contingent liabilities and guarantees
Contingent liabilities
31.12.2025
Lease liabilities are measured at net present value. Operating lease liabilities comprise minor assets
and leases with terms of less than one year.
The Company is jointly taxed with the other Danish companies of the Schouw & Co. Group. As a
group company, the Company is jointly and severally liable with the other Danish group companies
for Danish income tax and withholding tax on dividends, interest and royalties within the joint tax pool.
The net liability of the jointly taxed entities to SKAT is specified in the consolidated financial state-
ments of the management company. Any subsequent corrections in income subject to joint taxation,
withholding taxes on dividends, etc. may result in the Company’s tax liability increasing.
31.12.2024
In May 2025, the company entered into a lease agreement for the lease of a bulding in China, which
is not expected to be delivered and put into use until June 2026.
As the lease agreement has not commenced as of the balance sheet date, no right-of-use asset or
lease liabillity has been recognezed in the annual report for 2025 in the balance sheet as of
December 31, 2025.
The future lease payments related to the agreement amount to CNY 73 million, and these consti-tute
future cash flows that are not reflected in the lease liability as os the balance sheet date.
All amounts in DKK’000
Annual report 2025 | 45
Notes to the consolidated financial statements
Note
Note
27 Contingent liabilities and guarantees (continued)
Guarantees
31.12.2025 31.12.2024
The following assets have been provided as security to credit institutions:
Land and buildings with a carrying amount of 68.062 63.572
3.242 5.038
28 Related party disclosures
Management's remuneration and share option programmes are set out in note 2.
The above assets have been provided as security for the Group’s debt to credit and mortgage-credit
institutions of DKK 56,470 thousand (2024: DKK 60,590 thousand)
The company is predominately financed by resources of the parent company Schouw & Co. as well
as a number of committed and to a lesser extent uncommitted credit facilities.
The parent company’s source of financing is primarily composed of a syndicated banking facility,
which in December 2020 was refinanced with a total facility framework of DKK 3,275 million. The
facility expires April 2027 and has an outstanding of DKK 1.145 million.
In April 2019 and in November 2023, Schouw & Co. issued Schuldschein transactions of EUR 136
million, and EUR 225 million. The amount outstanding on the Schuldscheins is EUR 58 million (DKK
359 million) with expiries in April 2026, November 2026, November 2028 and November 2030.
In December 2021, a loan was established for a total of DKK 400 million with Nordic Investment Bank
for specific capacity and development investments. The loan is amortizing and has an outstanding of
DKK 267 million and expires in December 2028.
In June 2024, Schouw & Co. issued a bond in the Norwegian bond market with a nominal value of
NOK 1,300 million. The bond was further supplemented with an additional NOK 500 million in
September 2024 to a total of NOK 1,800 million (DKK 1,161 million). To eliminate any currency risk,
the nominal amount and all future interest payments is swapped to DKK.
In 2025, Schouw & Co. established a series of term loans totaling DKK 1,500 million with expiry in
April 2027.
The company, like other major subsidiaries in Schouw & Co., co-guarantess the aformentioned
facilities totaling DKK 6,561 million, where of DKK 4,432 million is utilized per 31/12-2025.
Other fixtures and fittings, tools & equipm. with a carrying amount of
The Group’s principal shareholder, Aktieselskabet Schouw & Co., is a related party exercising
control. Other related parties are group enterprises over which HydraSpecma exercises control and
the Board of Directors, the Executive Management and senior managers.
All amounts in DKK’000
Annual report 2025 | 46
Notes to the consolidated financial statements
at 31 December
Note
28 Related party disclosures (continued)
The Group’s transactions with related parties 31.12.2025 31.12.2024
Parent company:
Management fee
2.225 2.500
Interest expenses
39.626 49.702
Payment to Schouw & Co. for share option programme
2.114 3.435
Interest income
1.542 1.717
29 Pillar Two
30 Events after the balance sheet date
31 New financial reporting regulations
A/S or have no significant efffect on the Financiel Statements of HydraSpecma A/S.
Other than as set out elsewhere in this annual report, HydraSpecma A/S is not aware of events
occuring after 31 December 2025 which are expected to have a material effect on the Group's
financial position or outlook.
HydraSpecma A/S has assessed the effect of the new standards, amendments, and interpretations.
HydraSpecma A/S has concluded that all standards, amendments, and interpretations effective for
financiel years beginning on or after 1 January 2025 are either not relevant to the HydraSpecma
The Group’s receivables from the parent company at 31 December are detailed in note 13. The
Group’s debt to parent company is detailed in note 16.
HydraSpecma A/S has implemented the following amendments or new standards (IFRS) for financial
year 2025:
The amendments came into effective for financial years beginning on or after 1 January 2025:
The global minimum taxation rules (Pillar II) have applied to Schouw & Co. from 1. January 2024.
The minimum tax rules imply that a top-up or minimum tax must be paid to Denmark if the effective
tax rate in a jurisdiction is lower than 15%. Certain countries have implemented local top-up tax rules,
and any minimum tax will be paid locally. Most of the Group's jurisdictions are exempt in 2025 due to
certain transitional rules. In 2025, it is not expected that the global minimum taxation rules will have a
significant impact on the Group.
The Group has applied the temporary exception to the accounting requirements on deferred tax
under IAS 12 as issued by the IASB in May 2023.
IAS 21, Foreign exchange rates: The amendment provide guidance on how to determine whether a
currency is exchangeable into another currency, and which spot rate to use when it is not.
Additionally, the amendment establishes the procedures to determine the exchange rate when the
currency is not exchangeable into another currency.
All amounts in DKK’000
Annual report 2025 | 47
Annual Report 2025 | 48
Notes to the financial statements
32 Accounting policies
HydraSpecma A/S is a public limited company domiciled in Denmark. The financial part of the annual
report for the period 1 January – 31 December 2025 includes both the consolidated financial statements
of HydraSpecma A/S and its subsidiaries (the Group) and the financial statements of the parent com-
pany.
The consolidated financial statements of HydraSpecma A/S for the year ended 31 December 2025 have
been prepared in accordance with the International Financial Reporting Standards as adopted by the
EU and other disclosure requirements pursuant to the Danish Financial Statements Act.
The parent company financial statements have been prepared in accordance with the International Fi-
nancial Reporting Standards as adopted by the EU and additional Danish disclosure requirements for
annual reports of reporting class C enterprises (large).
The Board of Directors and the Executive Management have on 19 February 2026 reviewed and ap-
proved the annual report of HydraSpecma A/S for the 2025 financial year. The annual report will be
presented to HydraSpecma A/S’s shareholders for approval at the annual general meeting to be held
on 16 April 2026.
Basis of preparation
The consolidated financial statements are presented in DKK rounded to the nearest thousand.
The consolidated financial statements are prepared on the basis of the historical cost principle.
The accounting policies described below have been consistently applied for the financial year and for
the comparative figures. For standards implemented prospectively, comparative figures are not restated.
New financial reporting standards
HydraSpecma A/S implemented amendments to IAS 1, IAS 8 and IAS 12 in 2024. Noneof the imple-
mented amendments had a material effect on recognition or measurement for HydraSpecma A/S.
Description of accounting policies
Significant accounting estimates
In preparing the financial statements, management makes a number of assessments, estimates and
assumptions necessary for calculating the carrying amount of certain assets and liabilities. The esti-
mates and assumptions applied are based on factors such as historical experience and other factors
that management considers reasonable under the circumstances, but which are inherently uncertain
and unpredictable. Such assumptions may be incomplete or inaccurate, and unexpected events or cir-
cumstances may arise. Due to the risks and uncertainties the Group is subject to, actual outcomes may
deviate from estimates made. It may be necessary to revise previous estimates as a result of changes
to the assumptions on which such estimates were based or due to new information or subsequent
events. Management has identified three areas of particular materiality for the financial reporting:
> Trade receivables amount to DKK 735 million. Management applies estimates when assessing
whether receivables at the balance sheet date are recoverable. Historically, the item has not
materially affected the income statement. Management regularly reviews the need for write-
downs and beliveves that its trade receivables are not subject to significant credit risk.
> Customer relations and know-how amount to a total of DKK 220 million. The item is tested for
impairment at least annually based on expectations for future customer relations and based on
expectations for the future utilisation of know-how.
> Inventories amount to DKK 678 million. When assessing its inventories, HydraSpecma applies
a general model whereby items are automatically written down when they have been in stock
for a certain period of time, combined with an individual assessment of newly sourced goods.
The company reviews the automatic model on a regular basis, and in management’s best esti-
mate, it provides an appropriate and fair view of the net realizable value of inventories.
Annual Report 2025 | 49
Notes to the financial statements
32 Accounting policies
Significant accounting estimates (continued)
> Acquisitions are accounted for by recognising the acquired enterprise’s assets, liabilities and
contingent liabilities at fair value. The principal assets are generally intangible assets, including
goodwill, as well as inventories and property, plant and equipment. The intangible assets most
often identified are the value of customers, brands and know-how. Intangible assets are valued
at the present value of expected future cash flows related to the asset. Depending on the nature
of the item, the determination of the fair value of the acquired company’s assets, liabilities and
contingent liabilities may be subject to uncertainty and may subsequently be adjusted.
> Valued at DKK 305 million, goodwill represents a significant amount in the balance sheet, and
the value of goodwill is subject to the future earnings of the underlying cash-generating units.
Management performs impairment tests at least once a year. See note 9 to the consolidated
financial statements.
Consolidated financial statements
The consolidated financial statements comprise the parent company, HydraSpecma A/S, and subsidi-
aries in which HydraSpecma A/S exercises control.
Control is the power to govern a subsidiary’s financial and operating policies. Control also requires an
ability to make a financial return on the investment.
In assessing whether HydraSpecma A/S exercises control or significant influence, potential voting rights
exercisable at the balance sheet date are taken into account.
Enterprises in which HydraSpecma A/S exercises significant influence, but not control, over operating
and financial policy decisions are classified as associates. Significant influence exists when the Group,
directly or indirectly, holds or has the disposal of more than 20%, but less than 50%, of the voting rights.
A group overview is included in the Management’s review.
The consolidated financial statements are prepared by aggregating the financial statements of the par-
ent company and the individual subsidiaries prepared in accordance with the Group’s accounting poli-
cies. Intra-group income and expenses, shareholdings, intra-group balances and dividends and realised
and unrealised gains and losses on transactions between the consolidated companies are eliminated.
Unrealised gains on transactions with associates are eliminated in proportion to the Group’s interest in
the enterprise. Unrealised losses are eliminated in the same way as unrealised gains, to the extent that
they do not reflect impairment.
Financial statement items of subsidiaries are recognised 100% in the consolidated financial statements.
Non-controlling interests’ shares of profit/loss for the year and of equity in subsidiaries that are not wholly
owned are included in the consolidated profit/loss and equity but are presented separately.
Annual Report 2025 | 50
Notes to the financial statements
32 Accounting policies
Business combinations
Newly acquired or newly established companies are recognised in the consolidated financial statements
from the date of acquisition. Enterprises divested or wound up are recognised in the consolidated finan-
cial statements until the date of disposal. Comparative figures are not adjusted to reflect acquisitions or
divestments.
The acquisition date is the date on which the Group effectively assumes control of the acquired busi-
ness.
The acquisition method is applied to acquisitions if the Group gains control of the company acquired.
Identified assets, liabilities and contingent liabilities in companies acquired are measured at their fair
value at the date of acquisition. Identifiable intangible assets are recognised if they are separable or
arise from a contractual right. Deferred tax on revaluations made is recognised.
Any excess of the consideration, the value of non-controlling interests in the acquired enterprise and the
fair value of any previously acquired investments over the fair value of the identifiable assets, liabilities
and contingent liabilities acquired (goodwill) is recognised as goodwill under intangible assets. Goodwill
is not amortised, but is tested for impairment annually. The first impairment test is performed before the
end of the year of acquisition.
On acquisition, goodwill is transferred to the cash-generating units that will subsequently form the basis
of future impairment tests. Any goodwill arising and any fair value adjustments made on the acquisition
of an entity whose functional currency is not the same as the Group’s presentation currency are treated
as assets or liabilities of an entity and initially translated to the acquired entity’s functional currency at
the exchange rate ruling at the transaction date.
Any negative difference (negative goodwill) is recognised in profit/loss at the acquisition date.
The consideration for an enterprise consists of the fair value of the agreed consideration in the form of
assets transferred, liabilities assumed and equity instruments issued. If part of the consideration is con-
tingent on future events occurring or on agreed conditions being met, that part of the consideration is
recognised at fair value at the acquisition date. Subsequent adjustment of contingent consideration is
recognised in the income statement.
Expenses incurred in connection with an acquisition are recognised in the income statement in the year
in which they are incurred.
If uncertainties exist at the acquisition date regarding identification or measurement of acquired assets,
liabilities or contingent liabilities or the determination of the consideration, initial recognition will be based
on preliminary values. If the identification or measurement of the consideration, acquired assets, liabili-
ties or contingent liabilities on initial recognition subsequently proves to have been incorrect, the calcu-
lation, including goodwill, is adjusted retrospectively until 12 months after the acquisition, and compar-
ative figures are restated. Subsequently, goodwill is not adjusted. Changes to estimates of contingent
consideration are recognised in profit/loss for the year.
Gains or losses on the sale or winding-up of subsidiaries and associates are stated as the difference
between the sales sum or the proceeds from the winding-up and the carrying amount of net assets,
including goodwill, at the date of disposal and costs to sell or wind up.
Non-controlling interests
On initial recognition, non-controlling interests are recognised either at the fair value of their interest or
at their pro-rata share of the fair value of the acquired company’s identifiable assets, liabilities and con-
tingent liabilities.
Accordingly, for the former option, goodwill is recognised relating to non-controlling interests in the ac-
quired business, while for the latter option, goodwill relating to non-controlling interests is not recognised.
The method of measuring non-controlling interests is determined on a case-by-case basis and disclosed
in the presentation of acquired businesses in the notes to the financial statements.
Annual Report 2025 | 51
Notes to the financial statements
32 Accounting policies
Foreign currency translation
A functional currency is determined for each of the reporting enterprises of the Group. The functional
currency is the currency in the primary economic environment in which the reporting entity operates.
Transactions in currencies other than the functional currency are transactions in foreign currencies.
On initial recognition, transactions in foreign currencies are translated to the functional currency at the
exchange rate ruling on the transaction date. Exchange differences arising between the exchange rate
at the transaction date and the exchange rate at the date of payment are recognised in the income
statement under financial income or financial expenses.
Receivables, payables and other monetary items denominated in foreign currency are translated to the
functional currency at the exchange rates at the balance sheet date. The difference between the ex-
change rate at the balance sheet date and the exchange rate at the date when the receivable or payable
arose or was recognised in the most recent financial statements is recognised in the income statement
under financial income or financial expenses.
On consolidation of enterprises with functional currencies other than Danish kroner, the income state-
ments and other comprehensive income are translated at the exchange rates at the transaction date,
and the balance sheets are translated at the exchange rates ruling at the balance sheet date. An aver-
age exchange rate for the month is used as the exchange rate at the transaction date to the extent that
this does not significantly distort the presentation of the transaction.
Exchange differences arising on translation of the opening equity of such enterprises at the exchange
rates at the balance sheet date and on translation of other comprehensive income from the exchange
rates ruling at the transaction date to the exchange rates at the balance sheet date are recognised in
other comprehensive income as a separate translation reserve under equity. Foreign exchange adjust-
ments are distributed between the parent company’s and the non-controlling interests’ shares of equity.
Foreign exchange adjustment of balances that are considered part of the overall investment in a sub-
sidiary with a functional currency other than Danish kroner is recognised in the consolidated financial
statements in other comprehensive income as a separate translation reserve under equity.
Similarly, exchange gains and losses on the part of loans and derivative financial instruments entered
into as hedges of the net investment in such enterprises, and effectively hedging against similar ex-
change gains or losses on the net investment in the enterprise, are recognised in other comprehensive
income as a separate translation reserve under equity.
On consolidation of associates and joint ventures with functional currencies other than Danish kroner,
the share of the results is translated at average exchange rates, and the share of equity including good-
will is translated at the exchange rates ruling at the balance sheet date.
Exchange differences arising on translation of the opening equity of associates and joint ventures at
exchange rates ruling at the balance sheet date and on translation of the share of the results for the
year from average exchange rates to the exchange rates ruling at the balance sheet date are recognised
in other comprehensive income as a separate translation reserve under equity.
On disposal of all or parts of wholly owned entities with functional currencies other than Danish kroner
and where control is relinquished, accumulated foreign exchange adjustments which are recognised in
other comprehensive income and are attributable to the entity are reclassified from other comprehensive
income to the income statement together with any gains or losses on disposal.
On disposal of partially owned subsidiaries with functional currencies other than Danish kroner and
where control is relinquished, the part of the translation reserve relating to non-controlling interests is
not transferred to the income statement.
On disposal of parts of subsidiaries with functional currencies other than Danish kroner without control
being relinquished, a proportionate share of the translation reserve is transferred from the parent com-
pany shareholders’ to the non-controlling shareholders’ share of equity.
Annual Report 2025 | 52
Notes to the financial statements
32 Accounting policies
Foreign currency translation (continued)
On disposal of parts of associates and joint ventures, the proportionate share of the accumulated foreign
exchange adjustments which are recognised in other comprehensive income are reclassified to the in-
come statement together with any gains or losses on disposal.
Repayment of balances considered to be a part of the net investment is not in itself deemed to be a
disposal of part of the enterprise.
Derivative financial instruments
Derivative financial instruments are recognized from the trading date and are measured in the balance
sheet at fair value. Positive and negative fair values of derivative financial instruments, and offsets of
positive and negative values are only made when the company has the right and intention to settle
several financial instruments net.
Fair value hedges
Changes in the fair value of derivative financial instruments designated as and qualifying as effective
hedges of the fair value of a recognised asset or a recognised liability are recognised in the income
statement together with any changes in the value of the hedged asset or hedged liability as regards
the hedged portion. Hedges of future cash flows under a fixed agreement, other than currency
hedges, are treated as fair value hedges.
The portion of the value adjustment of a derivative financial instrument that is not part of a hedge is
presented under financial items.
Cash flow hedges
Changes in the portion of the fair value of derivative financial instruments designated as and qualifying
as a hedge of future cash flows and effectively hedging changes in future cash flows are recognised in
other comprehensive income as a separate hedging reserve under equity until the hedged cash flows
affect profit/loss. At that time, any gains or losses relating to such hedge transactions are reclassified
from other comprehensive income and recognised in the same item as the hedged item.
If the hedging instrument no longer qualifies for hedge accounting, the hedge is discontinued. The ac-
cumulated value change recognised in other comprehensive income is reclassified to the income state-
ment when the hedged cash flows affect profit or loss or are no longer likely to occur.
The portion of the value adjustment of a derivative financial instrument that is not part of a hedge is
presented under financial items.
Hedges of net investments
Changes in the fair value of derivative financial instruments used as hedges of net investments in sub-
sidiaries, associates and joint ventures with functional currencies other than Danish kroner, and which
effectively hedge against changes in foreign exchange rates in such enterprises, are in the consoli-
dated financial statements recognised in other comprehensive income as a separate translation re-
serve under equity. The portion of the value adjustment of a derivative financial instrument that is not
part of a hedge is presented under financial items.
Other derivative financial instruments
For derivative financial instruments that do not qualify for hedge accounting, changes in fair value are
recognised in the income statement under financial items as they occur.
Annual Report 2025 | 53
Notes to the financial statements
32 Accounting policies
Income statement
Revenue
Sales of finished goods and goods for resale comprise components and accessories for hydraulics,
industrial hoses and related areas such as the supply of assembled goods, system solutions and the
manufacturing of hydraulic aluminium blocks, and are recognised in revenue when control of the indi-
vidual identifiable performance obligation in the sales contract passes to the customer, which according
to the terms of sale is at the date of delivery. Although a sales agreement regarding sales of finished
goods and goods for resale often contains more than one performance obligation, such obligations are
treated as one combined performance obligation because delivery typically takes place at one point in
time.
Revenue is measured at the fair value of the agreed consideration net of VAT and taxes charged on
behalf of third parties. All discounts granted are recognised in revenue. Fair value equals the agreed
price. Where the terms of payment exceed 12 months, the value is discounted to net present value. The
standard terms of payment are current month plus 1-3 months.
The part of the total consideration that is variable, for example in the form of discounts, bonus payments,
penalty payments, etc., is recognised in revenue when it is reasonably certain that it will not subse-
quently be reversed due to, for example, non-achievement of targets and the like.
Rental income
Rental income comprises the letting of part of the Company’s buildings to other enterprises under oper-
ating leases. Rent is accrued and recognised as income on a straight-line basis over the term of the
lease in accordance with the contract.
Government grants
Government grants are recognised in the income statement when it is more likely than not that the
Company will receive the grant. Government grants to cover costs are recognised in profit/loss as the
grant is earned, typically as costs are incurred. Government grants to cover costs are recognised in the
income statement under the items in which the costs are recognised. Accordingly, the principle of off-
setting applies in the recognition of government grants to cover costs. Other government grants are
recognised in other operating income.
Cost of sales
Cost of sales comprises costs incurred to achieve the year’s revenue. Enterprises engaged in trading
recognise cost of sales and enterprises engaged in manufacturing recognise production costs incurred
to achieve the year’s revenue. This includes direct and indirect costs of raw materials and consumables,
wages and salaries, leases and depreciation and impairment of plant and machinery and amortisation
and impairment of development projects.
Distribution costs
Distribution costs comprise expenses incurred in connection with the distribution of goods sold during
the year and in connection with sales campaigns, etc. run during the year, including costs of sales staff,
advertising and exhibition, as well as depreciation/amortisation and impairment.
Administrative expenses
Administrative expenses comprise expenses incurred during the year for management and administra-
tion of the Group, including costs of administrative staff, management, office premises and office ex-
penses, and depreciation and impairment. Administrative expenses also comprise impairment of trade
receivables.
Other operating income and expenses
Other operating income and expenses comprise items of a secondary nature relative to the companies’
activities, including gains and losses on current sales and replacement of intangible assets and property,
plant and equipment. Gains and losses on the sale of intangible assets and property, plant and equip-
ment are computed as the difference between the selling price less costs to sell and the carrying amount
at the date of disposal.
Annual Report 2025 | 54
Notes to the financial statements
32 Accounting policies
Profit/loss from investments in subsidiaries and associates
The proportionate share of subsidiaries’ profits or losses after tax is recognised in the parent company’s
income statement after full elimination of intra-group gains/losses.
The proportionate share of associates’ profits or losses after tax is recognised in the income statement
of both the Group and the parent company after elimination of the proportionate share of intra-group
profits/losses.
Financial income and expenses
Financial income and expenses include interest and capital gains and losses on transactions in foreign
currency and impairment losses on securities. Also included are amortisation of financial assets and
liabilities, including finance lease liabilities, surcharges and refunds under the on-account tax scheme.
and changes in fair values of derivative financial instruments that do not qualify for hedge accounting.
Borrowing costs from general borrowing or loans that are directly attributable to the acquisition, con-
struction or development of qualifying assets are attributed to the cost of the specific individual asset.
Tax on profit/loss for the year
The Company is subject to the Danish rules on compulsory joint taxation of the Danish companies of
the Schouw Group. Danish subsidiaries are included in the joint taxation from the date at which they are
included in the consolidation until the date when they cease to be consolidated.
The parent company, Aktieselskabet Schouw & Co., is the designated management company of the tax
pool and handles the settlement of all income tax payments with the tax authorities.
The current Danish income tax liability is allocated among the companies of the tax pool in proportion
to their taxable income by payment of joint taxation contributions. In this connection, companies with
negative taxable incomes will receive joint taxation contributions from companies that have been able
to utilise such losses to reduce their own taxable profits.
Tax for the year comprises current tax and changes in deferred tax for the year. In addition, tax for the
year comprises changes to prior-year tax and changes in assessed provisions for uncertain tax posi-
tions. Tax for the year is recognised in profit/loss for the year, in other comprehensive income or directly
in equity, depending on where the transaction to which the tax relates is recognised.
To the extent the Group benefits from a deduction in the determination of taxable income in Denmark
or abroad due to share-based incentive programmes, the tax effect of such programmes is recognised
in tax on profit/loss for the year. If the overall tax deduction exceeds the overall accounting cost, the tax
effect of the excess tax deduction is recognised directly in equity.
Balance sheet
Intangible assets
Goodwill is initially measured in the balance sheet at cost. Subsequently, goodwill is measured at cost
less accumulated impairment. Goodwill is not amortised. The carrying amount of goodwill is allocated
to the Group’s cash-generating units at the date of acquisition. The determination of cashgenerating
units is based on the management structure and the in-house financial management.
Intangible assets such as customer relations, know-how and brands, acquired in connection with busi-
ness combinations are measured at cost less accumulated amortisation and impairment. Other intangi-
ble assets comprise IT solutions. Intangible assets are amortised on a straight-line basis over the ex-
pected useful lives of the assets, which are as follows:
Customer relations: 10-15 years
Know-how: 10-15 years
Brands: 10 years
Other intangible assets:
Goodwill is not amortised, but is tested for impairment once a year.
Annual Report 2025 | 55
Notes to the financial statements
32 Accounting policies
Development projects, patents, licences, etc.
Development costs comprise salaries, amortisation and depreciation and other costs attributable to the
company’s development activities.
Clearly defined development projects are recognised as intangible assets where the technical feasibility
of the project, the availability of adequate resources and a potential future market or application oppor-
tunity in the company can be demonstrated and where the intention is to manufacture, market or use
the project if the cost can be measured reliably and it is probable that the future earnings or the net
selling prices can cover production and selling expenses, administrative expenses as well as the devel-
opment costs. Other development costs are recognised in the income statement as incurred.
Recognised development costs are measured at cost less accumulated amortization and impairment.
On completion of the development work, the development project is amortised on a straight-line basis
over the estimated useful life. The usual amortization period is three to seven years. The basis of amor-
tisation is calculated less any impairment.
Development costs are amortised on a straight-line basis over the expected useful lives of the assets,
which are as follows:
Development projects: 3 years
Property, plant and equipment
Land and buildings, plant and machinery and fixtures and fittings, tools and equipment are measured at
cost less accumulated depreciation and impairment.
Cost comprises the acquisition price and any costs directly attributable to the acquisition until the date
when the asset is ready for use. For assets produced in-house, cost comprises direct and indirect costs
of materials, components, third-party suppliers and labour as well as borrowing costs relating to specific
and general borrowing directly related to the construction of the individual asset. Cost is increased by
the present value of estimated liabilities for the removal and disposal of the asset and restoration of the
site on which the asset was used.
Subsequent costs, such as the cost of replacing components of property, plant and equipment, are
included in the asset’s carrying amount when it is probable that the costs will result in future economic
benefits for the Group. The replaced components are derecognised in the balance sheet and the carry-
ing amount is transferred to the income statement. All other ordinary repair and maintenance costs are
recognised in the income statement when incurred.
The cost of a total asset is divided into separate components that are depreciated separately if such
components have different useful lives. Property, plant and equipment are depreciated on a straight-line
basis over the expected useful lives of the assets/components, which are as follows:
Buildings 10-50 years
Plant and machinery 5-10 years
Other fixtures and fittings, tools and equipment 3-7 years
Land is not depreciated
The basis of depreciation is calculated in due consideration of the asset’s residual value, reduced by
any impairment losses. The depreciation period and the residual value are determined at the acquisition
date and reviewed annually. Where the residual value exceeds the carrying amount, the property ceases
to be depreciated.
If the depreciation period or the residual value is changed, the effect on depreciation going forward is
recognised as a change in accounting estimates.
Annual Report 2025 | 56
Notes to the financial statements
32 Accounting policies
Property, plant and equipment (continued)
Depreciation is recognised in the income statement as production costs, distribution costs and adminis-
trative expenses, respectively, to the extent that deprecation is not included in the cost of goods pro-
duced inhouse.
Leases
A lease asset and a lease liability are recognised in the balance sheet when, under a lease for a specific
identifiable asset, the lease asset is made available to the Group during the term of the lease and when
the Group obtains substantially all of the economic benefits from the use of the identified asset and the
right to direct the use of the identified asset.
On initial recognition, lease liabilities are measured at the present value of future lease payments, dis-
counted using an alternative borrowing rate. The following lease payments are recognised as part of the
lease liability:
> Fixed payments
> Variable payments changing in accordance with changes in an index or an interest rate based
on the applicable index or rate.
> Amounts payable under a residual value guarantee.
> The exercise price of buy options that Management is highly likely to exercise.
> Payments under extension options that the Group is highly likely to exercise.
> Penalties related to termination options, unless the Group is highly likely not to exercise the
option.
The lease liability is measured at amortised cost under the effective interest method. The lease liability
is remeasured if there is a change in the underlying contractual cash flows due to changes in an index
or an interest rate, if there is a change in the Group’s estimate of a residual value guarantee or if the
Group changes its assessment as to whether it reasonably expects to exercise an extension or termi-
nation option.
On initial recognition, the lease asset is measured at cost, corresponding to the value of the lease liability
adjusted for prepaid lease payments, plus direct costs incurred and estimated costs of dismantling or
restoring the underlying asset or similar and less any discounts or other types of incentive payments
received from the lessor.
Subsequently, the asset is measured at cost less accumulated depreciation and impairment. The lease
asset is depreciated over the shorter of the lease term and the useful life of the lease asset. Depreciation
is recognised in the income statement on a straight-line basis.
The lease asset is adjusted for changes in the lease liability resulting from changes in the lease terms
or changes in the contractual cash flows according to changes in an index or an interest rate.
Lease assets are depreciated on a straight-line basis over the expected lease term, which is as follows:
Operating equipment 2-7 years
Properties 5-10 years
Lease assets are presented separately from lease liabilities in the balance sheet.
The group has decided not to recognise either lease assets of low value or short-term leases in the
balance sheet. Instead, lease payments on such leases are recognised on a straight-line basis in the
income statement.
Annual Report 2025 | 57
Notes to the financial statements
32 Accounting policies
Investments in subsidiaries and associates
Investments in subsidiaries and associates are measured in the parent company financial statements
according to the equity method.
On initial recognition, investments in subsidiaries and associates are measured at cost, i.e. with the
addition of transaction costs. Cost is allocated in accordance with the acquisition method of accounting.
See the description of business combinations.
Investments in subsidiaries and associates (continued)
Cost is adjusted to reflect shares of profits after tax calculated in accordance with the Group’s accounting
policies with the deduction or addition of unrealised intra-group gains and losses.
Dividends received are deducted from the carrying amount.
Any value added and goodwill relative to the equity value of the underlying business is recognised in
accordance with the Group’s accounting policies.
In the consolidated financial statements, investments in associates are measured according to the eq-
uity method, at the proportionate share of the associates’ equity value calculated in accordance with the
Group’s accounting policies minus or plus the proportionate share of unrealised intra-group profits and
losses and plus values added on acquisition, including goodwill.
Acquisitions of investments in associates are accounted for according to the acquisition method of ac-
counting. See the description of business combinations.
Impairment testing of non-current assets
Goodwill and intangible assets with indefinite useful lives are tested annually for impairment, initially
before the end of the year of acquisition.
The carrying amount of goodwill is tested for impairment together with the other non-current assets in
the cash-generating unit or group of cash-generating units to which goodwill has been allocated and is
written down to recoverable amount through profit or loss if the carrying amount is higher. The recover-
able amount is generally calculated as the net present value of expected future cash flows from the
enterprise or activity (cash-generating unit) to which the goodwill relates.
The carrying amounts of other non-current assets are tested annually for any indication of impairment.
If such an indication exists, the recoverable amount of the asset is calculated. The recoverable amount
is the higher of an asset’s fair value less expected costs to sell and its value in use.
Value in use is calculated as the present value of expected future cash flows from an asset or the cash-
generating unit to which the asset belongs.
An impairment loss is recognised where the carrying amount of an asset or a cash-generating unit ex-
ceeds the recoverable amount of the asset or cash-generating unit. Impairment losses are recognised
in profit/loss as production costs, distribution costs or administrative expenses. Goodwill impairment is
recognised as a separate line item in the income statement.
Impairment of goodwill is not reversed. Impairment of other assets is reversed to the extent that changes
have occurred to the assumptions and estimates leading to the impairment. Impairment losses are only
reversed to the extent that the new carrying amount of an asset does not exceed the carrying amount
the asset would have had after depreciation/amortisation, had the asset not been impaired.
Other securities
Holdings of securities which do not enable the Company to exercise control or significant influence are
measured at fair value.
Annual Report 2025 | 58
Notes to the financial statements
32 Accounting policies
Inventories
Inventories are measured at the lower of cost in accordance with the FIFO method and net realisable
value.
The cost of goods for resale, raw materials and consumables comprises the purchase price plus delivery
costs.
The cost of finished goods and work in progress comprises the cost of raw materials, consumables,
direct labour, indirect production costs and borrowing costs relating to specific and general borrowing
directly related to the production of the individual item of inventory. Indirect production costs include
indirect materials and labour as well as maintenance and depreciation of the machinery, factory build-
ings and equipment used in the manufacturing process as well as costs of production administration
and management.
The net realisable value of inventories is calculated as the sales amount less costs of completion and
costs necessary to make the sale and is determined taking into account marketability, obsolescence
and development in the expected selling price.
Receivables
Receivables are measured at amortised cost.
Provisions for bad debts are made in accordance with the simplified expected credit loss-model, under
which total losses are recognised immediately in the income statement at the same time as the receiv-
able is recognised in the balance sheet in the amount of the lifetime expected credit loss on the receiv-
able.
Interest on credit-impaired receivables is recognised as income based on the written-down value using
the effective interest rate for the individual receivable or portfolio.
Prepaid expenses
Prepaid expenses are measured at cost.
Equity
The hedging reserve comprises the accumulated net change in the fair value of hedging transactions
that qualify as hedges of future cash flows and for which the hedged transaction has yet to be realised.
The translation reserve in the consolidated financial statements comprises the parent company share-
holders’ share of foreign exchange differences arising on translation into Danish kroner of the financial
statements of entities with functional currencies other than Danish kroner.
Reserve for net revaluation according to the equity method
Reserve for net revaluation according to the equity method comprises net revaluation of investments in
subsidiaries and associates relative to cost.
The reserve may be eliminated against losses, realisation of investments or changes in accounting es-
timates. The reserve cannot be negative.
Dividend
Proposed dividend is recognised as a liability at the time of adoption by the shareholders at the annual
general meeting (the date of declaration). Dividends expected to be declared in respect of the year are
stated as a separate line item under equity.
Employee obligations
Pension obligations and similar long-term liabilities
The Group has set up pension plans and similar arrangements with the majority of the Group’s employ-
ees.
Liabilities relating to defined contribution plans are recognised in the income statement in the period in
which the benefits vest, and payments due are recognised in the balance sheet under other debt.
Annual Report 2025 | 59
Notes to the financial statements
32 Accounting policies
Share option programme
Share option programmes under which employees can purchase shares at an agreed price are meas-
ured at fair value at the grant date, and any changes to their value are recognised in the income state-
ment under staff costs over the vesting period. The balancing item is recognised in liabilities until pay-
ment is made to the parent company.
On initial recognition of the share options, the number of options expected to vest is estimated. Subse-
quently, adjustment is made for changes to the estimated number of vested options, to the effect that
the total amount recognised is based on the actual number of vested options.
The fair value of options granted is estimated using a valuation model that takes into account the terms
and conditions of the options granted.
Income tax and deferred tax
Current tax liabilities and current tax receivables are recognised in the balance sheet as calculated tax
on the taxable income for the year, adjusted for tax on prior years’ taxable income and for tax paid under
the on-account tax scheme.
Deferred tax is measured in accordance with the balance sheet liability method on all temporary differ-
ences between the carrying amount and the tax base of assets and liabilities. However, deferred tax is
not recognised on temporary differences relating to goodwill not deductible for tax purposes and other
items where temporary differences have arisen at the date of acquisition without affecting either
profit/loss for the year or taxable income.
In cases where the tax base may be computed according to alternative tax rules, deferred tax is meas-
ured on the basis of the intended use of the asset or settlement of the liability.
Deferred tax assets, including the tax base of tax loss carry-forwards, are recognised at the expected
value of their utilisation, either as a set-off against tax on future income or as a set-off against deferred
tax liabilities within the same legal tax entity and jurisdiction.
Deferred tax assets are reviewed annually and recognised only to the extent that it is probable that they
will be utilised.
Deferred tax assets and tax liabilities are offset if the Group has a legally enforceable right to set off
current tax liabilities and tax assets and intends either to settle current tax liabilities and tax assets on a
net basis or to realise the assets and settle the liabilities simultaneously.
Deferred tax is adjusted for eliminations and unrealised intra-group gains and losses.
Deferred tax is measured based on the tax rules and rates in the respective countries that will apply
under the legislation in force at the balance sheet date when the deferred tax asset is expected to
crystallise as current tax. Changes in deferred tax resulting from changes in tax rates are recognised in
profit/loss for the year and in comprehensive income for the year.
Provisions
Provisions are recognised when, as a consequence of an event occurring before or at the balance sheet
date, the Group has a legal or constructive obligation, the settlement of which is likely to result in an
outflow of economic benefits, and the amount can be reliably measured. Provisions are measured as
Management’s best estimate of the amount expected to be required to settle the liability.
Warranty commitments are recognised as the sale of goods and services is effected, based on the level
of incurred warranty costs in prior financial years.
A provision for onerous contracts is recognised when the unavoidable costs under a contract exceed
the expected benefits to the Group from the contract.
Annual Report 2025 | 60
Notes to the financial statements
32 Accounting policies
Financial liabilities
Debt to credit institutions etc. is recognised at the raising of a loan at fair value less transaction costs
incurred. Subsequently, financial liabilities are measured at amortised cost, applying the effective inter-
est method, to the effect that the difference between the proceeds and the nominal value is recognised
in profit/loss under financial expenses over the term of the loan.
In addition, the capitalised residual lease liability under finance leases is recognised in financial liabili-
ties, measured at amortised cost.
Other financial liabilities are measured at amortised cost.
Other payables
Other payables comprise debt to public authorities, holiday pay, etc. and are measured at amortised
cost, which usually corresponds to nominal value.
Cash flow statement
The cash flow statement presents cash flows for the year from operating, investing and financing activ-
ities, changes for the year in cash and cash equivalents and cash and cash equivalents at the beginning
and end of the year.
Cash flows from acquisitions and divestments of enterprises are shown separately under cash flows
from investing activities. Cash flows from acquired businesses are recognised in the cash flow statement
from the date of acquisition. Cash flows from divested businesses are recognised until the date of dis-
posal.
Cash flows from operating activities are calculated according to the indirect method as profit or loss after
tax adjusted for non-cash operating items, changes in working capital, interest received and paid, in-
cluding the interest component of recognised lease liabilities, dividends received and income tax paid.
Cash flows from investing activities comprise payments made in connection with the acquisition and
divestment of enterprises and operations and the acquisition and sale of intangible assets, property,
plant and equipment and financial assets.
Cash flows from financing activities comprise changes in the size or the composition of the share capital
and related costs as well as the raising of loans, repayment of interest-bearing debt and lease liabilities,
purchase and sale of treasury shares and payment of dividends to shareholders.
Cash and cash equivalents comprise cash.
Cash flows in currencies other than the functional currency are translated at average exchange rates
unless these differ significantly from the exchange rate ruling at the transaction date.
Financial ratios
Financial ratios are calculated in accordance with the definitions of financial ratios on page 9 of the
annual report.
1 January - 31 December
Note
2025 2024
1 Revenue
797.379 797.275
2 Cost of sales
(576.660) (571.742)
Gross profit
220.719 225.533
4 Other operating income
110.439 93.424
2 Distribution costs
(153.997) (147.130)
2, 3 Administrative expenses
(80.725) (76.530)
EBIT
96.436 95.297
5 Recognition of share of profit in subsidiaries
84.634 46.644
6 Profit after tax in associates
(332) (271)
7 Financial income
8.403 6.906
8 Financial expenses
(30.440) (34.374)
Profit before tax
158.701 114.202
9 Tax on profit/loss for the year
(16.314) (15.422)
Profit for the year
142.387 98.780
Proposed distribution of profit:
Reserve for net revaluation according to the equity method
84.634 46.644
Proposed dividend
50.000 40.000
Retained earnings
7.753 12.136
Profit for the year
142.387 98.780
Statement of comprehensive income
Items that can be reclassified to the income statement:
Value adjustment of hedging instruments for the year
(187) (856)
Other adjustments
26.798 (11.628)
9 Tax on profit/loss for the year
41 188
Other comprehensive income after tax
26.652 (12.296)
Profit for the year
142.387 98.780
Total recognised comprehensive income
169.039 86.484
Parent company income statement and statement of
comprehensive income
All amounts in DKK’000
Annual report 2025 | 61
Parent company balance sheet
at 31 December
Note
Assets
31.12.2025 31.12.2024
Goodwill 3.365 3.365
2, 10 Intangible assets 3.365 3.365
Land and buildings 108.112 111.872
Plant and machinery 12.339 14.483
Other fixtures and fittings, tools and equipment 6.878 9.495
Assets under construction, etc. 0 0
2, 11 Property, plant and equipment 127.329 135.850
5 Investments in subsidiaries 1.292.936 1.301.417
12 Lease assets 3.464 5.317
Equity investments in associates 1.246 1.578
Securities 21 21
14 Receivables 109.960 116.923
Other non-current assets 1.407.627 1.425.256
Total non-current assets 1.538.321 1.564.471
13 Inventories 150.568 138.250
14 Receivables 323.413 266.573
19 Income tax receivable 0 323
22 Cash and cash equivalents 421 481
Total current assets 474.402 405.627
Total assets 2.012.723 1.970.098
All amounts in DKK’000
Annual report 2025 | 62
Parent company balance sheet
at 31 December
Note
Liabilities and equity
31.12.2025 31.12.2024
Share capital 30.000 30.000
Hedge transaction reserve (524) (378)
Reserve for net revaluation according to the equity method 350.660 239.228
Retained earnings 736.356 728.603
Proposed dividend 50.000 40.000
Total equity 1.166.492 1.037.453
15 Deferred tax 2.470 2.385
17 Credit institutions 52.064 56.595
17 Debt to subsidiaries 0 5.255
17 Debt to parent company 200.000 200.000
Non-current liabilities 254.534 264.235
17 Current portion of non-current liabilities 4.732 4.530
17 Credit institutions 172 94
17 Debt to subsidiaries and parent companies 403.177 510.841
16 Provisions 10.394 10.159
18 Trade payables and other payables 157.769 142.786
19 Income tax 15.453 0
Current liabilities 591.697 668.410
Total liabilities 846.231 932.645
Total equity and liabilities 2.012.723 1.970.098
23-31 Notes without reference
All amounts in DKK’000
Annual report 2025 | 63
Parent company cash flow statement
1 January - 31 December
Note 2025 2024
Profit before tax 158.701 114.202
Adjustment for operating items of a non-cash nature, etc.
2 Depreciation, amortisation and impairment losses 15.624 16.171
Other operating items, net 1.884 4.427
5 Share of profits/losses of subsidiaries (84.634) (46.644)
6 Profit after tax in associates 332 271
Provisions 235 (15)
Financial income (8.403) (6.906)
Financial expenses 30.440 34.374
Cash flows from operations before changes in working capital 114.179 115.880
20 Changes in working capital (56.625) (12.425)
Cash flows from operations 57.554 103.455
Interest received 332 342
Interest paid (29.311) (30.667)
Cash flows from ordinary operations 28.575 73.130
19 Income tax paid (35) (13.069)
Cash flows from operating activities 28.540 60.061
21 Purchase of property, plant and equipment (4.282) (33.878)
5 Acquisitions 0 (83.415)
Sale of property, plant and equipment 130 0
Cash flows from investing activities (4.152) (117.293)
Loan financing:
Repayment of non-current liabilities (7.947) (1.848)
Increase/repayment of amounts owed to group companies (84.432) 76.948
Increase/repayment of bank overdrafts 269 298
Repayment of lease debt (2.289) (2.312)
Shareholders:
Dividends received from subsidiaries 109.761 0
Dividends paid (40.000) (25.000)
Cash flows from financing activities (24.638) 48.086
Cash flows for the year (250) (9.146)
Additions - by mergers 1 January 190 9.483
Cash and cash equivalents at 1 January 481 144
22 Cash and cash equivalents at 31 December 421 481
All amounts in DKK’000
Annual report 2025 | 64
Statement of changes in equity
at 31 December
Share
capital
Hedge
transaction
reserve
Reserve for
net revalua-
tion accord-
ing to the
equity
method
Retained
earnings
Proposed
dividend
Equity
Equity at 1 January 2024 30.000 290 204.212 716.467 25.000 975.969
Changes in equity in 2024
Value adjustment of hedging instruments for the
year
0 (856) 0 0 0 (856)
Tax on changes in equity 0 188 0 0 0 188
Other adjustments of equity 0 0 (11.628) 0 0 (11.628)
Profit for the year 0 0 46.644 12.136 40.000 98.780
Total recognised comprehensive income 0 (668) 35.016 12.136 40.000 86.484
Distributed dividends 0 0 0 0 (25.000) (25.000)
Total changes in equity in 2024 0 0 0 0 (25.000) (25.000)
Equity at 31 December 2024 30.000 (378) 239.228 728.603 40.000 1.037.453
Changes in equity in 2025
Value adjustment of hedging instruments for the
year
0 (187) 0 0 0 (187)
Tax on changes in equity 0 41 0 0 0 41
Other adjustments of equity 0 0 26.798 0 0 26.798
Profit for the year 0 0 84.634 7.753 50.000 142.387
Total recognised comprehensive income 0 (146) 111.432 7.753 50.000 169.039
Distributed dividends 0 0 0 0 (40.000) (40.000)
Total changes in equity in 2025 0 0 0 0 (40.000) (40.000)
Equity at 31 December 2025 30.000 (524) 350.660 736.356 50.000 1.166.492
The share capital comprises 3,000 shares of DKK 10,000 each.
No special rights are attached to any share.
The share capital is fully paid up.
All amounts in DKK’000
Annual report 2025 | 65
Notes to the parent company financial statements
1 January - 31 December
Note
1 Revenue
Segments:
Local
IAM/OEM
division
Renewables
division
Total
Nordic region
360.561 187.767 548.328
Rest of Europe
17.675 109.697 127.372
Rest of world
1.690 119.989 121.679
Total revenue 379.926 417.453 797.379
Segments:
Local
IAM/OEM
division
Renewables
division
Total
Nordic region
384.262 174.375 558.637
Rest of Europe
6.579 85.492 92.071
Rest of world
2.059 144.508 146.567
Total revenue 392.900 404.375 797.275
2
Costs
2025 2024
Cost of sales
Cost of sales for the year includes costs of goods sold in the amount of 482.775 485.302
Cost of sales for the year includes inventory write-downs in the amount of 4.778 8.911
(2.553) (3.909)
Staff costs
Wages, salaries and fees 197.406 179.862
Defined contribution pension plans 21.130 18.671
Other social security costs 3.885 3.918
Share-based payment 2.114 3.435
Total staff costs recognised in the income statement 224.535 205.886
Staff costs are recognised as follows:
Production 72.857 63.838
Distribution 114.065 110.896
Administration 37.613 31.152
Total staff costs recognised in the income statement 224.535 205.886
Average no. of employees 325 310
Modtaget lønkompensation 0 362
Cost of sales for the year includes reversed inventory write-downs due to
sales in the amount of
2024
2025
Share option programme
The terms and conditions of the share option programme are described in note 2 to the consolidated
financial statements.
The internal management and segment reporting was changed in 2024.
All amounts in DKK’000
Annual report 2025 | 66
Notes to the parent company financial statements
1 January - 31 December
Note
2 Costs (continued)
Employee shares
Management remuneration
Depreciation, amortisation and impairment losses
2025 2024
Depreciation of property, plant and equipment
13.653 13.884
Depreciation of lease assets 2.101 2.299
Total depreciation, amortisation and impairment losses 15.754 16.183
Depreciation/amortisation and impairment is recognised in the income statement as follows:
Production 7.617 6.222
Distribution 6.048 7.472
Administration 2.089 2.489
Total depreciation, amortisation and impairment losses 15.754 16.183
3 Fees to auditors appointed by the general meeting
Statutory audit fees 554 514
Fees for tax and VAT-related services 182 20
Non-audit services 63 404
Total fees, auditors appointed by the general meeting 799 938
Statutory audit fees, other auditors 0 52
Total fees, other auditors 0 52
4 Other operating income and expenses
Gains on disposal of property, plant and equipment and intangible assets 130 12
Invoiced to subsidiaries 110.309 93.412
Total other operating income 110.439 93.424
The terms and conditions of the grant of employee shares are described in note 2 to the consolidated
financial statements.
For more information on salaries and bonuses, pensions and share-based payment to the Executive
Management and senior managers of HydraSpecma A/S, see note 2 to the consolidated financial
statements.
All amounts in DKK’000
Annual report 2025 | 67
Notes to the parent company financial statements
at 31 December
Note
31.12.2025 31.12.2024
5 Investments in subsidiaries
Cost at 1 January 1.066.659 993.244
Additions 0 83.415
Disposals for the year (6.998) (10.000)
Cost at 31 December 1.059.661 1.066.659
Adjustments at 1 January 234.758 199.742
Foreign exchange adjustments 26.798 (11.628)
Share of profit for the year 84.634 46.644
Received dividend from subsidiaries (109.761) 0
Reversals for the year of revaluations in previous years (3.154) 0
Adjustments at 31 December 233.275 234.758
Carrying amount at 31 December 1.292.936 1.301.417
Equity
interest
Equity
interest
31.12.2025 31.12.2024
HydraSpecma Hydraulics India Private Ltd. India 100% 100%
HydraSpecma Hydraulic Systems (Tianjin) Co., Ltd. China 100% 100%
HydraSpecma USA Inc. USA 100% 100%
HydraSpecma AB Sweden 100% 100%
HydraSpecma Component AB Sweden 100% 100%
HydraSpecma OY Finland 100% 100%
HydraSpecma Norge AS Norway 100% 100%
HydraSpecma Renewables AB Sweden 100% 100%
6 Investments in associates
Cost at 1 January 1.600 1.600
Cost at 31 December 1.600 1.600
Adjustments at 1 January (22) 249
Share of profit for the year (332) (271)
Adjustments at 31 December (354) (22)
Carrying amount at 31 December 1.246 1.578
The Group has investments in the following associates:
Equity
interest
Equity
interest
Name
31.12.2025 31.12.2024
NGIN A/S
Aarhus,
Denmark
40% 40%
Registered
office
Registered
office
All amounts in DKK’000
Annual report 2025 | 68
Notes to the parent company financial statements
at 31 December
Note
2025 2024
7 Financial income
Interest income, group companies 4.906 6.261
Foreign exchange adjustments 3.230 379
Other interest income 267 266
Total financial income 8.403 6.906
8 Financial expenses
Interest expenses, group companies 27.598 28.717
Foreign exchange adjustments 916 2.886
Interest expenses, lease debt 213 251
Other interest expenses 1.713 2.520
Total financial expenses 30.440 34.374
For lease assets we refer to note 12 and for lease liabilities we refer to note 17.
9 Tax on profit/loss for the year
Tax on the profit for the year is specified as follows:
Tax on profit/loss for the year 16.314 15.422
Tax on other comprehensive income (41) (188)
Total tax 16.273 15.234
Tax on the profit for the year has been calculated as follows:
Current tax 16.079 15.276
Deferred tax 77 72
Adjustment of prior-year tax charge 158 74
Total tax recognised in the income statement 16.314 15.422
Specification of the tax on the profit for the year:
Computed 22,0% tax on profit before tax 16.368 14.922
(212) 441
Tax effect on adjustment of taxes regarding prior year 158 59
Total tax recognised in the income statement 16.314 15.422
Effective tax rate 10,3% 13,5%
Tax effect of non-deductible costs and non-taxable income
All amounts in DKK’000
Annual report 2025 | 69
Notes to the parent company financial statements
1 January - 31 December
Note
9 Tax on profit/loss for the year (continued)
Before tax Tax After tax
Hedging instruments for the year
(187) 41 (146)
(187) 41 (146)
Before tax Tax After tax
Hedging instruments for the year
(856) 188 (668)
(856) 188 (668)
10 Intangible assets
Goodwill IT projects Total
Cost at 1 January 3.365 26.360 29.725
Disposals 0 (20.671) (20.671)
Cost at 31 December 3.365 5.689 9.054
Amortisation and impairment at 1 January 0 (26.360) (26.360)
Depreciation and impairment of assets disposed of 0 20.671 20.671
Amortisation and impairment at 31 December 0 (5.689) (5.689)
Carrying amount at 31 December 3.365 0 3.365
Amortised over 3-5 years
Goodwill IT projects Total
Cost at 1 January 26.360 26.360
Additions - by mergers 3.365 0 3.365
Cost at 31 December 3.365 26.360 29.725
Amortisation and impairment at 1 January (26.360) (26.360)
Amortisation and impairment at 31 December (26.360) (26.360)
Carrying amount at 31 December 3.365 0 3.365
Amortised over 3-5 years
2024
2025
31.12.2025
31.12.2024
Total tax on items recognised in other comprehensive
income
Tax on items recognised in other comprehensive
income
Tax on items recognised in other comprehensive
income
Total tax on items recognised in other comprehensive
income
All amounts in DKK’000
Annual report 2025 | 70
Notes to the parent company financial statements
at 31 December
Note
11
Property, plant and equipment
Land and
buildings
Plant and
machinery
Other
fixtures and
fittings, tools
and
equipment
Assets
under
construction
Total
Cost at 1 January 181.771 75.867 41.461 0 299.099
Additions 2.173 640 1.469 0 4.282
Additions - by mergers 61 788 0 0 849
Disposals 0 (967) (3.516) 0 (4.483)
Cost at 31 December 184.005 76.328 39.414 0 299.747
(69.899) (61.384) (31.966) 0 (163.249)
0 967 3.516 0 4.483
Depreciation (5.994) (3.573) (4.086) 0 (13.653)
(75.893) (63.990) (32.536) 0 (172.419)
108.112 12.338 6.878 0 127.328
Depreciated over 25-50 years 5-10 years 3-7 years
31.12.2025
Depreciation and impairment of
assets disposed of
Depreciation and impairment at
31 December
Depreciation and impairment at
1 January
Carrying amount at 31
December
All amounts in DKK’000
Annual report 2025 | 71
Notes to the parent company financial statements
at 31 December
Note
11 Property, plant and equipment (continued)
Land and
buildings
Plant and
machinery
Other
fixtures and
fittings, tools
and
equipment
Assets
under
construction
Total
Cost at 1 January 155.515 73.959 35.614 3.257 268.345
Additions 24.468 2.533 6.877 0 33.878
Additions - by mergers 0 0 331 0 331
Disposals (1.469) (625) (1.361) 0 (3.455)
Transferred/reclassified 3.257 0 0 (3.257) 0
Cost at 31 December 181.771 75.867 41.461 0 299.099
(65.979) (58.437) (28.404) 0 (152.820)
1.469 625 1.361 0 3.455
Depreciation (5.389) (3.572) (4.923) 0 (13.884)
(69.899) (61.384) (31.966) 0 (163.249)
111.872 14.483 9.495 0 135.850
Depreciated over 25-50 years 5-10 years 3-7 years
Depreciation and impairment at
1 January
Depreciation and impairment of
assets disposed of
Depreciation and impairment at
31 December
Carrying amount at 31
December
31.12.2024
All amounts in DKK’000
Annual report 2025 | 72
Notes to the parent company financial statements
at 31 December
Note
12 Lease assets
Property
Other fix-
tures and
fittings, tools
and equip-
ment
Total
Cost at 1 January 3.464 5.443 8.907
Disposals 0 (246) (246)
Modifications 0 248 248
Cost at 31 December 3.464 5.445 8.909
Depreciation and impairment at 1 January (848) (2.742) (3.590)
Depreciation and impairment of assets disposed of 0 246 246
Depreciation (848) (1.253) (2.101)
Depreciation and impairment at 31 December (1.696) (3.749) (5.445)
Carrying amount at 31 December 1.768 1.696 3.464
Depreciated over 5 years 3-5 years
For lease interests we refer to note 8 and for lease liabilities we refer to note 17.
Services
Low-value
leases
Leases with
terms of less
than 1 year
Total
Less than 1 year 168 225 0 393
1-5 years 132 0 0 132
More than 5 years 0 0 0 0
Total
300 225 0 525
Lease liabilities recognised in the balance sheet are detailed in note 17.
Recorded in the income statement
Services
Low-value
leases
Leases with
terms of less
than 1 year
Total
Expense for the year 134 0 488 622
Lease payments amount to DKK 2,455 thousand (2024: DKK 2,643 thousand)
Lease liabilities not recognised in the balance
sheet
31.12.2025
31.12.2025
All amounts in DKK’000
Annual report 2025 | 73
Notes to the parent company financial statements
at 31 December
Note
12 Lease assets (continued)
Property
Other fix-
tures and
fittings, tools
and equip-
ment
Total
Cost at 1 January 0 5.536 5.536
Additions 0 1.498 1.498
Additions - by mergers 3.464 0 3.464
Disposals 0 (1.599) (1.599)
Modifications 0 8 8
Cost at 31 December 3.464 5.443 8.907
Depreciation and impairment at 1 January 0 (2.860) (2.860)
Depreciation and impairment of assets disposed of 0 1.569 1.569
Depreciation (848) (1.451) (2.299)
Depreciation and impairment at 31 December (848) (2.742) (3.590)
Carrying amount at 31 December 2.616 2.701 5.317
Depreciated over 5 years 3-5 years
Services
Low-value
leases
Leases with
terms of less
than 1 year
Total
Less than 1 year 175 217 0 392
1-5 years 250 0 0 250
More than 5 years 0 0 0 0
Total
425 217 0 642
Services
Low-value
leases
Leases with
terms of less
than 1 year
Total
Expense for the year 114 0 808 922
13 Inventories 31.12.2025 31.12.2024
Raw materials and consumables
2.387 3.047
Work in progress 3.512 5.221
Finished goods and goods for resale 144.669 129.982
Total inventories 150.568 138.250
Cost of inventories for which impairment losses have been recognised 66.943 63.260
Accumulated impairment losses on inventories (42.729) (46.857)
Net sales value 24.214 16.403
31.12.2024
31.12.2024
Recorded in the income
statement
Lease liabilities not recognised in the balance
sheet
All amounts in DKK’000
Annual report 2025 | 74
Notes to the parent company financial statements
at 31 December
Note
14 Receivables 31.12.2025 31.12.2024
Receivable from subsidiaries (non-current) 109.960 116.923
Trade receivables 199.847 174.499
Other receivables 2.026 2.164
Receivable from subsidiaries 115.700 82.406
Receivable from parent company 2.365 2.782
Prepaid expenses 3.475 4.722
Total receivables 433.373 383.496
Impairment losses on receivables:
Impairment losses 1 January (2.500) (2.500)
Impairment losses for the year (10) (264)
Realised loss 10 264
Total impairment losses (2.500) (2.500)
Trade receivables are specified as follows:
31.12.2025
Not fallen
due
1-30 days 31-90 days >90 days Total
Total receivables 167.002 29.456 4.415 1.474 202.347
0 (1.762) (517) (221) (2.500)
Trade receivables, net 167.002 27.694 3.898 1.253 199.847
Proportion of total receivables expected to be settled 98,8%
Impairment rate 0,0% 6,0% 11,7% 15,0% 1,2%
31.12.2024
Not fallen
due
1-30 days 31-90 days >90 days Total
Total receivables 148.598 24.303 3.975 123 176.999
0 0 (2.377) (123) (2.500)
Trade receivables, net 148.598 24.303 1.598 0 174.499
Proportion of total receivables expected to be settled 98,6%
Impairment rate 0,0% 0,0% 59,8% 100,0% 1,4%
Due between (days)
Due between (days)
Impairment losses on trade
receivables
Impairment losses on trade
receivables
All amounts in DKK’000
Annual report 2025 | 75
Notes to the parent company financial statements
at 31 December
Note 31.12.2025 31.12.2024
15
Deferred tax
Deferred tax at 1 January 2.385 2.632
Additions - by mergers 49 (131)
Deferred tax for the year recognised in profit/loss for the year 77 72
Deferred tax for the year recognised in equity (41) (188)
Deferred tax at 31 December, net 2.470 2.385
Deferred tax is recognised as follows in the statement of financial position:
Deferred tax (aktiv) 0 0
Deferred tax (liability) 2.470 2.385
Deferred tax at 31 December, net 2.470 2.385
Deferred tax pertains to:
Property, plant and equipment 5.218 5.146
Current assets (1.100) (1.211)
Provisions (2.287) (2.235)
Other liabilities 639 685
Deferred tax at 31 December, net 2.470 2.385
Change in deferred tax
Balance at
1 January
Adjustments
Recognised
in the profit
for the year
Recognised
in equity
Balance at
31
December
Property, plant and equipment 5.146 49 23 0 5.218
Inventories (1.715) 0 65 0 (1.650)
Other current assets 504 0 46 0 550
Provisions (2.235) 0 (52) 0 (2.287)
Other liabilities 685 0 (5) (41) 639
2.385 49 77 (41) 2.470
Balance at
1 January
Adjustments
Recognised
in the profit
for the year
Recognised
in equity
Balance at
31
December
Property, plant and equipment 4.977 (78) 247 0 5.146
Inventories (1.475) 0 (240) 0 (1.715)
Other current assets 466 35 3 0 504
Provisions (2.238) 0 3 0 (2.235)
Other liabilities 902 (88) 59 (188) 685
2.632 (131) 72 (188) 2.385
Total change in deferred tax
31.12.2025
31.12.2024
Total change in deferred tax
All amounts in DKK’000
Annual report 2025 | 76
Notes to the parent company financial statements
at 31 December
Note 31.12.2025 31.12.2024
16 Provisions
Provisions at 1 January 10.159 10.174
Used for the year (7.955) (6.211)
Provided for the year 8.190 6.196
Provisions at 31 December 10.394 10.159
Expected due dates:
Current 10.394 10.159
Provisions at 31 December 10.394 10.159
Note 31.12.2025 31.12.2024
17 Interest-bearing debt
Debt recognised in the balance sheet:
Mortgagedebt (non-current) 50.484 53.176
Mortgage debt (current) 2.641 2.450
Lease debt (non-current) 1.580 3.419
Lease debt (current) 2.091 2.080
Debt to subsidiary (non current) 0 5.255
Credit institutions (current) 172 94
Debt to parent company (non-current) 200.000 200.000
Debt to parent company (current) 403.177 502.144
Debt to subsidiaries (current) 0 8.697
Total interest-bearing debt 660.145 777.315
Fair value of interest-bearing debt 660.653 777.365
For lease interests we refer to note 8 and for lease assets we refer to note 12.
Provisions include contractual guarantees of 1-5 years.
All amounts in DKK’000
Annual report 2025 | 77
Notes to the parent company financial statements
at 31 December
Note
17 Interest-bearing debt (continued)
Maturity profile of interest-bearing debt
31.12.2025 31.12.2024 31.12.2025 31.12.2024 31.12.2025 31.12.2024
Overdraft facilities
without planned
repayment
172 8.791 0 0 172 8.791
Less than 1 year 14.875 15.064 10.143 10.534 4.732 4.530
1-5 years 669.829 745.042 14.588 24.956 655.241 720.086
More than 5 years 5.374 50.191 5.374 6.283 0 43.908
Total 690.250 819.088 30.105 41.773 660.145 777.315
Spot rate used for floating rate loans in the table above.
Whereoff leasing amounts to:
Less than 1 year 2.193 2.327 102 247 2.091 2.080
1-5 years 1.617 3.768 37 349 1.580 3.419
More than 5 years 0 0 0 0 0 0
Total 3.809 6.095 138 596 3.671 5.499
Interest rate risk
Fixed rate
Floating
rate Total Fixed rate Floating rate Total
Interest-bearing
debt
0 660.653 660.653 0 777.365 777.365
Hedging 0 0 0 0 0 0
Net exposure 0 660.653 660.653 0 777.365 777.365
31.12.2025
31.12.2024
The Group hedges parts of the interest rate risk on its debt subject to a case-by-case assessment. In
addition to expectations for interest rate developments, such assessment includes the amount of the
total floating rate debt relative to equity. Hedging normally consists of interest rate swaps and rate
caps. All interest rate swaps and rate caps are used to hedge underlying loans/credit facilities. There
were no interest rate swaps at 31 December 2025.
Principal repayment
A +/- 1% change in the interest rate level would increase/reduce financial expenses by approx. DKK
6.6 million.
Interest
Carrying amount
All amounts in DKK’000
Annual report 2025 | 78
Notes to the parent company financial statements
at 31 December
Note
31.12.2025 31.12.2024
18 Trade payables and other payables
Trade payables 114.922 109.075
Debt to subsidiaries – non-interest-bearing 10.810 8.592
Other debt 32.037 25.119
Total trade payables and other payables 157.769 142.786
Substantially all trade payables and other payables fall due within one year.
19 Income tax
Income tax receivable at 1 January (323) (2.152)
Additions by mergers (268) (378)
Current tax for the year 16.079 15.276
Income tax paid during the year (35) (13.069)
Income tax at 31 December 15.453 (323)
Which is specified as follows:
Income tax receivable 0 (323)
Income tax payable 15.453 0
Income tax at 31 December 15.453 (323)
20 Changes in working capital
Change in inventories (14.543) 27.784
Change in receivables (48.096) (24.760)
Change in trade payables and other payables 6.014 (15.449)
Total changes in working capital (56.625) (12.425)
21 Adjustment for non-cash transactions
Purchase of property, plant and equipment, see note 11 4.282 33.878
Paid relating to purchase property plant and equipment 4.282 33.878
Financial liabilities incurred 248 1.506
of which lease debt (248) (1.506)
Proceeds from incurring financial liabilities 0 0
22
Cash and cash equivalents
Cash and cash equivalents 421 481
Total cash and cash equivalents 421 481
All amounts in DKK’000
Annual report 2025 | 79
Notes to the parent company financial statements
at 31 December
Note
31.12.2025 31.12.2024
23 Categories of financial assets and liabilities
Financial assets
Non-current assets
Other investments and securities (other shareholdings)
21 21
Available-for-sale financial assets *)
21 21
Current assets
Trade receivables
199.847 174.499
Other receivables
230.051 204.275
Cash and cash equivalents
421 481
Receivables
430.319 379.255
Financial liabilities
Non-current liabilities
Debt to mortgage-credit institutions
50.484 53.176
Other credit institutions
1.580 3.419
Debt to subsidiaries
0 5.255
Debt to parent company
200.000 200.000
Financial liabilities at amortised cost
252.064 261.850
Current liabilities
Debt to mortgage-credit institutions
2.641 2.450
Other credit institutions
2.263 2.174
Debt to parent company
403.177 502.144
Debt to subsidiaries
0 8.697
Trade payables and other debt
146.208 133.630
Financial liabilities at amortised cost
554.289 649.095
Other debt (derivative financial instruments)
751 564
Trading portfolio **)
751 564
**) Financial instruments valued by external credit institutions using generally accepted valuation
techniques on the basis of observable data (level 2).
*) Unlisted shares, stated at estimated value (level 3)
All amounts in DKK’000
Annual report 2025 | 80
Notes to the parent company financial statements
at 31 December
Note
24 Financial risk
The Company’s risk management policy
Interest rate risks are described in greater detail in note 17.
Currency risk
Currency
Cash and
receivables
Liabilities
Position
before
hedging
Hedged
using
financial
instruments
Position
after
hedging
USD/DKK 3.669 (6.331) (2.662) 0 (2.662)
GBP/DKK 0 (434) (434) 0 (434)
SEK/DKK 106.239 (2.844) 103.395 0 103.395
NOK/DKK 4.218 0 4.218 0 4.218
CNY/DKK 61.185 (879) 60.306 (28.907) 31.399
CAD/DKK 0 (2.039) (2.039) 0 (2.039)
Due to the currency peg to the Euro, no real currency risk is considered to exist between DKK and
EUR, and this is omitted from the table above.
A 5% depreciation of currencies in which the Company has significant exposure, based on the
Company’s functional currency, would impact profit for the year by about DKK 6.693 thousand (2024:
DKK 1.757 thousand). The amounts are based on balance sheet items at 31 December 2025.
The parent company’s currency risks in the balance sheet at 31 December 2025 translated to
DKK
Due to the nature of its operations, investments and financing, the Company is exposed to changes
in exchange rates and interest rates. It is company policy to not actively speculate in financial
instruments. Accordingly, the Company’s financial management exclusively involves the
management of financial risk relating to its operations and investments.
Set out in the table below is the Company’s overall foreign exchange position at 31 December,
determined by aggregating the gross currency risks of the individual group companies.
It is the Company’s policy to hedge significant transaction risks related to future income streams not
naturally covered through purchases and sales. As a general rule, currency risks are hedged by way
of forward contracts with a duration of up to 12 months. The market value of currency hedges was a
asset of 751 DKK thousand (2024: An asset of DKK 564 thousand).
All amounts in DKK’000
Annual report 2025 | 81
Notes to the parent company financial statements
at 31 December
Note
24 Financial risk (continued)
Currency
Cash and
receivables
Liabilities
Position
before
hedging
Hedged
using
financial
instruments
Position
after
hedging
USD/DKK 7.142 (11.493) (4.351) 0 (4.351)
GBP/DKK 0 (1.000) (1.000) 0 (1.000)
SEK/DKK 113.192 (75.802) 37.390 0 37.390
NOK/DKK 4.968 0 4.968 0 4.968
CNY / DKK 11.669 (2.255) 9.414 (9.412) 2
CAD/DKK 0 (1.867) (1.867) 0 (1.867)
Credit risk
Capital management
Liquidity risk
31.12.2025 31.12.2024
At 31 December, the Group’s cash resources consisted of:
Available operating credits 579.802 580.183
Drawn operating credits (403.349) (510.935)
Amount in the cash pool scheme
2.365 2.782
Cash and cash equivalents 421 481
179.239 72.511
The Company’s credit risk is primarily related to trade receivables. The Company seeks to avoid signi-
ficant exposure to individual customers or business partners. The Company’s policy for undertaking
credit risks involves regular credit assessments of all major customers.
The Company regularly assesses the need for adjustment of the capital structure to weigh up the
higher required rate of return against the increased uncertainty related to debt financing. The ratio of
equity to total liabilities was 57,9% at 31 December 2025 (2024: 52,7%).
To ensure that the Company always has the necessary cash resources to capitalise on any invest-
ment opportunities that may arise and to be able to settle liabilities, the Company has entered into
several agreements with recognised financial institutions, under which they provide credit lines to the
Company.
The parent company’s currency risks in the balance sheet at 31 December 2024 translated to
DKK
It is the Group’s policy as a general rule to distribute the profit for the year after tax, in due considerati-
on of changes to the balance sheet and special liquidity requirements with respect to investments.
Dividend payments must be made in due consideration of the target level of equity.
All amounts in DKK’000
Annual report 2025 | 82
Notes to the parent company financial statements
at 31 December
Note
25 NIBD
Change in NIBD for the year:
Non-cash items
1 January Cash flows
For. ex.
adjustments
Other
31
December
Interest-bearing assets:
119.705 (13.703) 6.323 0 112.325
Cash and cash equivalents 481 (60) 0 0 421
Interest-bearing liabilities:
53.176 (2.692) 0 0 50.484
200.000 0 0 0 200.000
2.450 191 0 0 2.641
516.096 (117.184) 4.265 0 403.177
Credit institutions (current) 94 78 0 0 172
Lease debt 5.499 (2.076) 0 248 3.671
NIBD 657.129 (107.920) (2.058) 248 547.399
26 Operating lease liabilities and rent commitments
Operating leases and rent commitments: Property Cars Total
Falling due within 0-1 years 225 0 225
Total 225 0 225
Operating leases and rent commitments: Property Cars Total
Falling due within 0-1 years 217 0 217
Total 217 0 217
27 Contingent liabilities and guarantees
Contingent liabilities
31.12.2025
31.12.2024
The Company is jointly taxed with the other Danish companies of the Schouw & Co. Group. As a
group company, the Company is jointly and severally liable with the other Danish group companies
for Danish income tax and withholding tax on dividends, interest and royalties within the joint tax pool.
The net liability of the jointly taxed entities to SKAT is specified in the consolidated financial
statements of the management company. Any subsequent corrections in income subject to joint
taxation, withholding taxes on dividends, etc. may result in the Company’s tax liability increasing.
Lease liabilities are measured at net present value. Operating lease liabilities comprise minor assets
and leases with terms of less than one year.
Current debt to group
companies
Current receivables, group
companies
Debt to mortgage-credit
institutions (non-current)
Non-current debt to group
companies
Current portion of non-current
liabilities
All amounts in DKK’000
Annual report 2025 | 83
Notes to the parent company financial statements
at 31 December
Note
27 Contingent liabilities and guarantees (continued)
Guarantees
31.12.2025 31.12.2024
The following assets have been provided as security to credit institutions:
Land and buildings with a carrying amount of 68.062 63.572
The above assets have been provided as security for the Group’s debt to credit and mortgage-credit
institutions of DKK 53,125 thousand (2024: DKK 55,626 thousand).
The company is predominately financed by resources of the parent company Schouw & Co. as well
as a number of committed and to a lesser extent uncommitted credit facilities.
The parent company’s source of financing is primarily composed of a syndicated banking facility,
which in December 2020 was refinanced with a total facility framework of DKK 3,275 million. The
facility expires April 2027 and has an outstanding of DKK 1.145 million.
In April 2019 and in November 2023, Schouw & Co. issued Schuldschein transactions of EUR 136
million, and EUR 225 million. The amount outstanding on the Schuldscheins is EUR 58 million (DKK
359 million) which expiries in April 2026, November 2026, November 2028 and November 2030.
In December 2021, a loan was established for a total of DKK 400 million with Nordic Investment Bank
for specific capacity and development investments. The loan is amortizing and has an outstanding of
DKK 267 million and expires in December 2028.
The company, like other major subsidiaries in Schouw & Co., co-guarantees the aforementioned
facilities totaling DKK 6,561 million, where of DKK 4,432 million is utilized per 31/12-2025.
In June 2024, Schouw & Co. issued a bond in the Norwegian bond market with a nominal value of
NOK 1,300 million. The bond was further supplemented with an additional NOK 500 million in
September 2024 to a total of NOK 1,800 million (DKK 1,161 million). To eliminate any currency risk,
the nominal amount and all future interest payments is swapped to DKK.
In 2025, Schouw & Co. established a series of term loans totaling DKK 1,500 million with expiry in
April 2027.
All amounts in DKK’000
Annual report 2025 | 84
Notes to the parent company financial statements
at 31 December
Note
28 Related party disclosures
Related parties are described in note 27 to the consolidated financial statements.
In addition, the parent company had the following transactions with group companies:
2025 2024
Subsidiaries:
Divestments
66.358 64.438
Acquisitions
16.071 7.654
Management fee - income
77.502 90.535
Royalty fee - income
32.807 2.877
Interest income
4.841 6.261
Interest expenses
168 820
Parent company:
Management fee - expense
2.225 2.500
Interest expenses
27.430 27.897
Payment to Schouw & Co. for share option programme
2.114 3.435
29 Pillar Two
30 Accounting policies
See note 32 to the consolidated financial statements.
31 New financial reporting regulations
See note 31 to the consolidated financial statements.
The parent company’s receivables from group companies at 31 December are detailed in note 14.
The parent company’s debt to group companies is detailed in notes 17 and 18.
The global minimum taxation rules (Pillar II) have applied to Schouw & Co. from 1. January 2024.
The minimum tax rules imply that a top-up or minimum tax must be paid to Denmark if the effective
tax rate in a jurisdiction is lower than 15%. Certain countries have implemented local top-up tax rules,
and any minimum tax will be paid locally. Most of the Group's jurisdictions are exempt in 2025 due to
certain transitional rules. In 2025, it is not expected that the global minimum taxation rules will have a
significant impact on the Group.
The Group has applied the temporary exception to the accounting requirements on deferred tax
under IAS 12 as issued by the IASB in May 2023.
All amounts in DKK’000
Annual report 2025 | 85
© HydraSpecma · Annual Report 2025 · 04.2026
HydraSpecma A/S
Bækgårdsvej 36
6900 Skjern
+4597350599
HSDK@hydraspecma.com
hydraspecma.com