Second quarter (1 July–30 September 2025)

• Revenue amounted to MSEK 1,127 (1,144).
• Adjusted for items affecting comparability of MSEK -36, operating profit (EBITA) increased by 11 percent to MSEK 133 (120) and the adjusted EBITA margin improved to 11.8 percent (10.5).
• Net profit totalled MSEK 31 (55).
• Cash flow from operating activities increased to MSEK 112 (87).
• The divestment of the Skydda companies and the divestment of Luna’s Baltic operations were completed during the quarter.
• Two acquisitions were completed, with annual revenue of approximately MSEK 170.

Six months (1 April–30 September 2025)

• Revenue rose by 2 percent to MSEK 2,446 (2,397).
• Adjusted for items affecting comparability, operating profit (EBITA) increased by 10 percent to MSEK 263 (239) and the adjusted EBITA margin improved to 10.8 percent (10.0).
• Net profit totalled MSEK 91 (113).
• Cash flow from operating activities increased to MSEK 294 (274).
• Six acquisitions have been completed, one of which after the end of the period, with total annual revenue of approximately MSEK 360.
• For the most recent 12-month period, adjusted earnings per share after dilution amounted to SEK 8.30. Earnings per share after dilution amounted to SEK -2.70 (-1.95 for the 2024/2025 financial year).

CEO’s comments

Profit and profitability continue to improve
We are continuing to deliver profit growth despite challenging economic conditions. Over the past 23 quarters, we have delivered a stable increase in operating profit, a direct result of the commitment of our employees and the strength of our business model. Underlying EBITA increased by 11 percent to MSEK 133 (120) and the adjusted EBITA margin improved to 11.8 percent (10.5). Our relentless efforts to optimise our inventory levels continued to pay off, and along with improved operating profit, this resulted in a positive trend in profitability (P/WC), which now amounts to 33 percent (29). I am also pleased to report that we strengthened our cash flow from operating activities to MSEK 112 (87) and increased our adjusted earnings per share.

Organic revenue decreased by 4 percent, reflecting the challenging market conditions faced by many of our companies. At the same time, we succeeded in improving our gross margins and maintaining cost control, which offset our weaker revenue. During the quarter, we continued to phase out low-margin businesses through structural measures - important steps to strengthen the Group’s profitability and competitiveness in the long term.

Structural measures to strengthen our companies
In addition to the previously communicated divestment of Skydda’s Nordic operations, we also divested Luna’s Baltic operations during the quarter as part of our strategy to focus on niche, market-leading tech companies. These operations have a revenue of approximately MSEK 100, and the divestment provides Luna with better conditions to refine its business model. The transaction is structured to secure the current sales of our product companies and Luna to the divested companies. I am convinced that this will strengthen both Luna and the Group in the long term.

We are continuing to acquire highly profitable, niche tech companies
During the quarter, we conducted acquisitions that broadened and strengthened our portfolio of companies. Cresto Group, in Safety Technology, acquired Donut Safety Systems, which complements Cresto’s offering in the offshore segment. In Core Solutions, we welcomed HC Coils, a niche producer of made-to-order heat exchangers used for temperature control, air conditioning and refrigeration. After the end of the quarter, we also acquired Modus Gauges, one of the UK’s leading suppliers of high-quality pressure and temperature instrumentation. Combined, these companies have annual revenue of approximately MSEK 200 with good profitability and provide attractive growth prospects.

The fact that we have acquired six companies so far this year is a testament to our ability to acquire high-quality, niche tech companies even in challenging economic situations. I am therefore confident about our potential to acquire more companies during the year, not least thanks to our strong financial position, which provides the scope to act when the right opportunities arise.

Market development and outlook
Despite continuing global uncertainty, I hope that the economy will gradually improve in early 2026. Until we see clear signs of a turnaround, we will continue to be flexible and adapt our operations to the prevailing conditions. At the same time, we are working to ensure that our companies are well positioned when their markets recover.

I have great confidence in our broad portfolio of companies, our decentralised governance model and our dedicated employees. I am convinced that we have the right conditions in place to maintain our positive earnings and margin trend and further strengthen our profitability. To ensure this, we will continue to allocate capital to operations with good profitability and growth potential and take the necessary structural measures while continuing to acquire niche, highly profitable companies with good prospects.

Stockholm, October 2025

Magnus Söderlind
President & CEO