First quarter (1 April–30 June 2025)

• Revenue rose by 5 percent to MSEK 1,319 (1,253).
• EBITA increased by 9 percent to MSEK 130 (119) and the EBITA margin improved to 9.9 percent (9.5).
• Net profit increased to MSEK 60 (58).
• Cash flow from operating activities totalled MSEK 182 (187).
• Four acquisitions have been completed, one of which after the end of the period, with total annual revenue of approximately MSEK 300.
• Earnings per share for the most recent 12-month period amounted to SEK -1.80 before and after dilution, compared with SEK -1.95 for the 2024/2025 financial year. Adjusted earnings per share amounted to SEK 8.20 after dilution.
• The competition authorities in Sweden, Finland and Norway approved the divestment of Skydda companies to Ahlsell, which took over as owner after the end of the period.

CEO’s comments

Increased profit despite a challenging market

The first quarter of the operating year resulted in continued improvements in earnings, higher profitability and stronger cash flow despite the fact that demand in the construction and industrial segments remained weak. EBITA increased by 9 percent to MSEK 130 (119) and the EBITA margin improved to 9.9 percent (9.5). We have now improved our earnings for 22 consecutive quarters, which in my opinion proves the strength of our business model and the initiatives of our companies. Revenue rose by 5 percent, primarily due to acquisitions. Higher acquisition-related amortisation and unchanged net financial items meant that profit before tax increased 3 percent to MSEK 76 (74).

Working capital continued to decrease organically. Together with improved earnings, this led to a strong trend in profitability (P/WC), which increased to 32 percent (27). Cash flow from operating activities totalled MSEK 182 (187).

Strategic divestment strengthens focus

The divestment of Skydda’s Nordic operations to Ahlsell was completed after the end of the quarter. Now that Ahlsell is the new owner of Skydda, we see good opportunities to increase volumes from our product companies in the area of personal protective equipment. Skydda’s operations outside the Nordic region will not be affected by the transaction and will remain an important channel for our product companies. Initially, the divestment results in an EBITA shortfall of around MSEK 45 but will strengthen the group’s long-term conditions. The earnings will be substituted by high-quality acquisitions, which will further make us reach the targets MSEK 500 EBIT and 10 percent operating margin, albeit with a few quarters delay compared to what has previously been communicated.

Acquisition pace continues – focus on niche growth companies

Three acquisitions were conducted during the quarter. Following our acquisition of Mann & Co we are now, together with our companies Germ and Sandberg, a market leader in Sweden when it comes to fluid handling equipment. Through our acquisition of 97 percent of the UK company Raintite, which specialises in PVC-laminated steel products for roof applications such as guttering, we expanded our offering within commercial construction-related solutions. We established ourselves in the growing control and measurement systems niche for the oil, gas, chemical and aviation industries through the acquisition of Ontec in Finland. After the end of the quarter, we acquired H C Coils in the UK, which offers bespoke industrial heat exchangers for customers in, for example, the processing or pharmaceutical industries.

Collectively, these companies have annual revenue of approximately MSEK 300, with good profitability and attractive growth prospects. The focus going forward for these units is therefore to drive growth while retaining profitability. Our focus on acquiring product companies means that we have reached our interim target of 75 percent proprietary products – a gratifying milestone. Overall, we see good opportunities to acquire high-quality niche technology companies that meet our criteria for acquisition. We have the scope to continue conducting acquisitions, thanks to a strong balance sheet and access to cash and cash equivalents.

Well equipped to create long-term value growth

While certain segments of the market are cautious, we draw strength from our decentralised model, with companies that act independently within clear financial frameworks. We are continuing to streamline operations in addition to improving the sales mix and investing where we see potential for profit growth. Our broad exposure to various product and customer segments, combined with structured capital allocation and an active acquisition agenda, makes us well positioned to continue to create profit and profitability growth over time.

Stockholm, July 2025

Magnus Söderlind
President & CEO