Interim Report January 1 – September 30

During the third quarter, Berner Industrier delivered organic sales growth of 22 percent and hit yet another record for EBITA, SEK 34.5 million, an increase of 19 percent. The Energy & Environment business area reported a growth of 44 percent. Technology & Distribution achieved both excellent sales and earnings growth during the third quarter, 6 percent and 22 percent, respectively.

Third quarter 2026
• Order intake totaled SEK 205.4 (249.7) million, a decrease of 17.7 percent.
• Net sales for the third quarter totaled SEK 287.4 (230.2) million, up 24.8 percent, of which organic growth 22.3 percentage points, acquired growth 1.3 percentage points, and 1.2 percentage points from currency translation effects relating to foreign subsidiaries.
• EBITA totaled SEK 34.5 (29.0) million, an increase of 19.0 percent. The EBITA margin was 11.9 percent (12.5).
• Earnings per share before and after dilution were SEK 0.52 (1.12).
• Cash flow from operating activities was SEK 16.2 (26.3) million. Cash flow for the period totaled SEK -10.3 (24.0) million.
• At the end of the period, the net debt/equity ratio was 1.0x (interest-bearing liabilities/EBITDA for the last 12 months).

Significant events in the third quarter
• The Board of Directors gave Group Management the task of evaluating the future of the subsidiary Buller bekämparen Svenska AB within the Group following recurring losses, which is ongoing. During the quarter, an impairment of goodwill, not affecting the cash flow, amounting to SEK 13.6 million had an adverse impact on EBIT.
• During the quarter, the company repurchased 275,000 Class B shares to a value of SEK 19,9 million within the framework of the Annual General Meeting's authorization.

Nine months 2026
• Order intake totaled SEK 765.4 (791.3) million, a decrease of 3.3 percent.
• Net sales for the period totaled SEK 860.6 (739.1) mil lion, up 16.4 percent, driven by 10.5 percentage points organic growth and 5.6 percentage points acquired growth.
• EBITA totaled SEK 83.7 (72.0) million, an increase of 16.3 percent. The EBITA margin was 9.7 percent (9.7).
• Earnings per share before and after dilution were SEK 2.25 (2.67).
• Cash flow from operating activities was SEK 51.1 (75.3) million. Total cash flow for the period was SEK -19.2 (-0.6) million.

Significant events after the end of the reporting period
• There were no significant events after the end of the reporting period.

Comments from the CEO
Continued strong growth and EBITA increase

An eventful third quarter when we continued developing the Group for the future. The Christian Berner companies launched a joint Nordic platform in Vibration Technology, and we continued to work with the Group’s internal and external capital allocation. Organic sales growth landed at a full 22 percent, with yet another new record EBITA of just under SEK 35 million.

Another strong quarter, with EBITA increasing 19 percent compared to the previous year. That is higher than the target of a mini mum 15 percent. Both business areas had solid growth during the quarter. The momentum within Technology & Distribution has been particularly pleasing to witness, with 4 percent organic growth and 22 percent EBITA growth, following a period of restructuring and portfolio optimization. It is gratifying that Technology & Distribution raising their EBITA-margin above nine percent. The only fly in the ointment during the quarter was order intake, which for the Group as a whole was 18 percent lower than in the previous year. The order intake for ongoing operations has generally been good, but there were fewer of the larger projects that we typically receive at regular intervals. Order intake from larger projects normally fluctuates during the year, so this is nothing unusual. Naturally, we want to see more such orders in the coming quarters.

During the quarter, the four Christian Berner subsidiaries within the business area launched a stronger Nordic platform within Vibration Technology. A local presence combined with Nordic expertise and shared resources means Christian Berner creates even greater value for customers, suppliers, and partners through out the region. The objective is to create quiet environments that protect people, buildings, and sensitive equipment. Vibration Technology Nordics operates through Christian Berner's existing local companies, while allowing for increased coordination, knowledge sharing, and closer cooperation across national borders.
The companies within Energy & Environment have also delivered strong results throughout the quarter, with 41 percent organic growth, especially driven by the three largest companies: Zander & Ingeström, Autofric and Swedenborg.

Portfolio optimization within Energy & Environment
In light of the new financial targets, older acquisitions have been reviewed. As announced in September, the Board decided to specifically review the smallest company within Energy & Environment, Bullerbekämparen, which has had difficulty living up to the targets. While it is a fine company within an important field, improving work environments, it has not managed to grow enough to reach the necessary size to be a stand-alone part of a decentralized structure. The review is ongoing, but we have amortized the associated goodwill during the quarter to ensure we have considerable room to maneuver in the future.

Future-oriented capital allocation
Owners selling their business to us often want an ownership stake in the Group. This makes sense. A dynamic and exciting group naturally becomes even more interesting with every acquisition. One way to achieve this is through partial payment in shares. During the fall, the Board therefore decided to utilize the mandate given by the Annual General Meeting and bought back a total of 275,000 shares for just under SEK 20 million. In the same way that we continuously optimize the capital structure this is a capital placement – which we anticipate putting to use further down the line.

Caroline Reuterskiöld
President and CEO Berner Industrier AB