Fourth quarter (1 January–31 March 2026)

• Revenue amounted to MSEK 1,269 (1,311).
• Adjusted operating profit (EBITA) increased by 11 percent to MSEK 139 (125) and the adjusted EBITA margin improved to 11.0 percent (9.5).
• Net profit increased to MSEK 91 (-207) and earnings per share after dilution increased to SEK 3.30 (-7.75).
• Cash flow from operating activities increased to MSEK 74 (28).
• One acquisition was completed, with annual revenue of approximately MSEK 110.
• Logistikpartner i Ulricehamn AB was divested in January.

12 months (1 April 2025–31 March 2026)

• Revenue amounted to MSEK 4,972 (4,972).
• Adjusted operating profit (EBITA) increased by 11 percent to MSEK 537 (485) and the adjusted EBITA margin improved to 10.8 percent (9.8).
• Net profit increased to MSEK 243 (-40).
• Cash flow from operating activities totalled MSEK 493 (509).
• Nine acquisitions have been completed, one of which after the end of the period, with total annual revenue of approximately MSEK 545.
• Adjusted earnings per share after dilution amounted to SEK 8.45. Earnings per share after dilution amounted to SEK 8.50 (-1.95).
• The Board proposes a dividend of SEK 4.20 (4.00) per share.

CEO’s comments

A year of tangible improvements
The past year marked a clear, positive shift for Bergman & Beving. Through structural changes, a high pace in acquisition activities, and a consistent focus on operational improvements, we have delivered higher profits, improved profitability, and strong cash conversion. This despite a cautious underlying market and an operating environment dominated by geopolitical uncertainty and trade barriers. However, the direct impact of this global turbulence has been limited. Our sales to the US account for barely 3 percent of our total sales, and our presence in the Middle East is almost non-existent. The Group has continued to focus on the construction and industrial segments in Northern Europe.

Our markets were stable during the year, but largely without growth. Nevertheless, we delivered organic revenue growth during the last two quarters of the year.

Increased profit, return and earnings per share
We are proud to report that we have now improved our earnings for 25 consecutive quarters. This is the result of determined efforts related to acquisitions as well as organic improvements.

Adjusted EBITA increased by 11 percent for both the quarter and the full year. EBITA in the quarter amounted to MSEK 170, with divestments of companies generating a capital gain of MSEK 31. The adjusted EBITA margin improved to 11.0 percent for the quarter and 10.8 percent for the full year. Despite increased depreciation and amortisation as well as higher net financial items, adjusted profit before tax improved for both the quarter and the full year.

In combination with increased capital efficiency, higher operating profit meant that the return on working capital (P/WC) increased to 36 percent, an improvement of 5 percentage points. Operating cash flow for the quarter increased to MSEK 74, up MSEK 46 year-on-year. Adjusted earnings per share have increased for the full year to SEK 8.45 (8.05).

Over five years, we have strengthened our gross margin by more than 10 percentage points. The gross margin was 51 percent for the quarter and 49 percent for the full year. This improvement was attributable to the phase-out of various low-margin businesses and an increase in the share of proprietary products to 80 percent (74). I consider these improvements in our key figures to be a testament to the strength of our business model and our approach, with a focus on profitable growth.

Group structure for long-term, profitable growth
During the year, we implemented several structural measures and a new organisation with four divisions has been implemented, with the aim of creating better conditions for driving both profitable organic growth and acquisition-driven expansion.

Three of the four divisions increased their earnings in the quarter and two divisions – Core Solutions and Safety Technology – are now posting EBIT margins above 10 percent and a return on working capital above 45 percent. Essve, the Group’s largest company, delivered a particularly encouraging performance, having increased its annual profit by 20 percent, while strengthening its operating margin by several percentage points and improving its capital efficiency considerably. The Cresto Group also finished the year on a strong note.

Machinery & Equipment reported EBIT margins of more than 17 percent for the quarter and is now posting margins around the level I expect to see going forward. Over the short term, I expect the division to achieve a return on working capital (P/WC) of over 45 percent.

PPE & Utilities had a challenging quarter and full year, with a decrease in earnings in Luna and Teng Tools in particular. We are not yet seeing any clear trend toward improvement and have therefore taken additional measures to strengthen profitability and efficiency. However, the division will need time to achieve the Group’s financial targets.

Measures for long-term value creation
The divestment of Skydda’s Nordic operations meant an initial loss of revenue of approximately MSEK 550 and a loss of EBIT of approximately MSEK 45, but strengthened the Group’s long-term prospects. Luna’s Baltic operations, with annual revenue of approximately MSEK 100, were also divested. This has resulted in clearer positioning and decreased complexity, both for Luna and for the Group as a whole.

Finally, Logistikpartner i Ulricehamn AB was divested in the most recent quarter. The company is a logistics company that primarily provides services to our B&B companies. This divestment marked a step in our ambition to focus on autonomous, profitable niche companies that are leaders in their markets.

Acquisitions that strengthen the Group’s long-term potential
Our acquisition focus during the year was on highly profitable, niche B2B tech companies with strong market positions in the Nordics and the UK. Eight acquisitions in total were completed, which together represent annual revenue of MSEK 520, with good profitability and attractive growth opportunities. The acquisitions of DataLase, Modus Gauges, H C Coils, Raintite and Ontec have established us in new and attractive niches. With A1 Shutters Limited, we have expanded geographically in a market niche where we are already present. The add-on acquisitions of Donut Safety Systems and Mann & Co strengthened the positions of existing companies in their niches. All Coating was also acquired by our subsidiary Uveco after the end of the year.

Our acquisition activities have yielded clear, positive results, and going forward, acquisitions will also be a central component of our growth agenda.

Sustainability – a natural part of business
Business-oriented and relevant sustainability activities are an important element in our long-term competitiveness. Our companies pursue initiatives both in their own operations and in their value chains, with a focus on the areas where, as an industrial group, we can make the biggest positive difference for customers, employees and society while ensuring our compliance with all legal requirements.

Continued focus on earnings growth
Our successes over the past year would not have been possible without our dedicated and talented employees. I would like to extend my sincerest thanks to all of my B&B colleagues for valuable contributions, and with whom I confidently look forward to continuing to develop the Group together with. Our decentralised model has proven robust in challenging markets and our broad exposure to niche B2B technology companies puts us in a good position to continue to grow our earnings per share over time, despite the persistently turbulent global situation and an economy that is difficult to assess.

Going forward, we will continue to prioritise profit growth over volume growth and to allocate capital to companies with high profitability and attractive growth opportunities. With a stronger organisation in place, a clear acquisition agenda and a culture characterised by business acumen and a proactive approach, we are well positioned to navigate an environment where energy and freight prices may continue to increase, especially if the conflict in the Middle East drags on.

In summary, Bergman & Beving is well equipped for the future and I see good opportunities to continue improving the Group’s margins, cash flow and earnings per share.

Stockholm, May 2026

Magnus Söderlind
President & CEO