First quarter

• Net sales decreased by 8% to SEK 1,022 M (1,105)
• The underlying operating result amounted to SEK -2 M (-2)
• The operating result increased to SEK 8 M (-12), including inventory gains and losses of SEK 10 M (-10)
• Result after tax increased to SEK 5 M (-14)
• Cash flow from operating activities amounted to SEK -14 M (-37)
• Earnings per share increased to SEK 0.25 (-1.08)

Statement from the CEO
The first quarter of 2026 was characterized by weak market conditions and generally low underlying demand. However, the Finnish market is showing signs of recovery, and the business area developed positively during Q1 following a period that was clearly affected by the transition to a new business system. We now see improved operational efficiency and more stable delivery performance. The joint venture ArcelorMittal BE Group SSC AB (AMBE) demonstrates stability in its business and operations, reflected in a strong result with improved margins despite lower volumes in a continued pressured market. In the Swedish operations, we see positive development within the OEM segment, while performance remains weak in the construction segment, particularly within reinforcement.

The result was positively impacted by increased gross margin, cost efficiencies, and inventory gains, and negatively impacted by lower volumes and price pressure. Steel prices increased during the quarter, and there is a strong focus on adjusting prices toward the market in line with rising material procurement costs to ensure margins in a continued challenging environment.

This resulted in lower revenue for the period compared with the previous year. The Group’s net sales amounted to SEK 1,022 M (1,105). The gross margin increased to 13.0 percent (10.4). Operating result increased to SEK 8 M (-12). Cash flow from operating activities amounted to SEK -14 M (-37).

Market outlook
The recovery in the construction segment is expected to continue, primarily within infrastructure related projects, although likely at a somewhat slower pace than previously anticipated due to the continued weakness of the Nordic housing market. Forecasts from a number of industrial customers and relevant industrial segments continue to point toward a more favorable economic environment going forward, subject to the ongoing uncertainty in the global environment.

Steel prices in Europe and the Nordic region increased by approximately 3-5 percent during the first quarter of 2026, and we expect them to continue to rise during Q2. This development is largely driven by several interacting factors, including the implementation of CBAM (Carbon Border Adjustment Mechanism) and other protective measures, some increase in demand, and higher production and transportation costs due to elevated energy prices.

At the same time, volatility in raw material and freight markets driven by the uncertain global political situation may contribute to short-term fluctuations in both demand and pricing.

Our focus going forward
We will further intensify sales activities, with a clear priority on segments where demand is developing positively, such as industrial segments and infrastructure projects. The reinforcement business is under particular focus with the aim of strengthening profitability. In addition, margin optimization will continue through maintaining strict capital discipline, ensuring full impact from implemented structural measures, realizing ongoing cost efficiencies, and fully restoring operational efficiency in the Finnish operations.

Johan Wiig
President and CEO