Fresh off another strong year, even mighty Lego isn’t immune to the ripple effects of the US war on Iran — most notably oil prices, a key input for producing iconic Lego bricks.
“We consider that an input cost of raw materials for us. Of course, we’ll go up in price when oil goes up. It really depends whether it’s shorter term or it’s longer term. Short term, we are on contracts — we are relatively immune to that longer term,” Lego Group CEO Niels B. Christiansen said on Tuesday (video above).
Christiansen added, “We consider that part of the volatility that we’ve been dealing with over the last three, four years. It has happened before, as I can remember. Let’s see how long-lasting it becomes and how significant, but it will, of course, have an impact on our input cost.”
Crude oil prices are up more than 60% since the start of Operation Epic Fury more than a week ago.
Lego reported today that sales last year increased 12% from the prior year to 83.5 billion Danish kroner. Gains were driven by all segments. The company ended the year with the biggest product portfolio in its history, powered by innovations such as Formula One racing and flower-themed Lego sets.
“We’ve seen the brand stand really strong,” Christiansen said.
Operating and net profits rose at a faster pace than sales — 22% and 21%, respectively — as Lego invested in new stores and manufacturing capacity.
The company didn’t provide full-year 2026 guidance.
But results are expected to be powered by a barrage of new products, such as the Lego Smart Play, which offer a sound experience to the bricks for the first time.
Brian Sozzi is Yahoo Finance’s Executive Editor and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
Click here for in-depth analysis of the latest stock market news and events moving stock prices
Read the latest financial and business news from Yahoo Finance