Second quarter (1 July–30 September 2026)
Six months (1 April–30 September 2026)
CEO’s comments
Higher profit, return and earnings per share along with stronger cash flow
We continued to increase our profit in the second quarter and can now report 27 consecutive quarters of improved earnings. Operating profit (EBITA) rose by 9 percent to MSEK 145 (133) and net sales increased by 8 percent. Several of our Finnish and Swedish companies noted increased activity in the construction and manufacturing sectors, while the Norwegian construction market was dominated by a wait-and-see attitude following the interest rate hike in the autumn. Demand remained strong for several of our companies in the UK, despite weak macroeconomic indicators.
The EBITA margin improved further to 11.9 percent (11.8). The gross margin remained on a par with last year at just over 50 percent. Several of our companies have faced rising raw material and freight costs, and the EU Carbon Border Adjustment Mechanism (CBAM) is driving up purchase prices for certain inputs. The companies have largely offset this development by implementing their own price increases, demonstrating the strength of our niche positions and offerings.
The return on working capital (P/WC) improved to 38 percent (33), providing a clear indication that our focus on profitability and capital efficiency is yielding results. The improvement was attributable to both higher profit and lower average working capital, due in particular to a reduction in inventory. Cash flow from operating activities increased to MSEK 130 (112).
All divisions except PPE & Utilities noted an increase in revenue – including organic growth – as well as higher profit, profit margins and returns. Core Solutions continued to deliver a strong performance, with most of the division’s companies contributing to this development. Safety Technology grew primarily as a result of acquisitions, while organic growth was more mixed as certain customers continued to postpone their purchases. During the quarter, Collinder – a subsidiary in the division – acquired Håva-Skyltar, which manufactures and sells custom-made specialty signs and safety products and has revenue of just under MSEK 20, with favourable profitability. Machinery & Equipment recovered after a weak first quarter, and I expect the division to continue to increase its earnings and returns. PPE & Utilities reported lower earnings, margins and returns. Luna continued to feel the effects of weak demand, particularly in Norway. Sales from our PPE companies have temporarily been held back by the integration of Skydda under its new owner, where the acquired inventory is now being sold off. However, new direct customers have also been added, which will strengthen the division’s position in the long term.
Continued focus on profitable growth
My assessment remains unchanged: overall demand in the Group’s markets is expected to continue to improve gradually over the coming quarters. Our direction is unwavering. While our acquisition rate has been slower so far this operating year, our goal is to grow the Group both organically and through acquisitions, with a portfolio of technology companies that are well placed in niche markets and offer good margins, high profitability and growth potential. With a higher return on working capital, stronger margins and increased efficiency, we will be well positioned as demand in the construction and manufacturing sectors continues to improve.
Stockholm, October 2026
Magnus Söderlind
President & CEO