Interim report January-September 2026

Third quarter 2026
· Net sales increased by 16.6 percent to SEK 2,236 (1,917) million. Organic growth amounted to 6.5 percent, and order intake was in line with net sales.
· Adjusted operating profit (EBITA) amounted to 349 (272) million, corresponding to an operating margin of 15.6 (14.2) percent.
· Operating profit (EBITA) amounted to 362 (264) million, and the operating margin amounted to 16.2 (13.8) percent.
· Earnings per share amounted to SEK 1.16 (0.75).
· Cash flow from operating activities amounted to SEK 370 (293) million, corresponding to a cash conversion of 100 (108) percent.
· Net debt/EBITDA, adjusted, amounted to 2.2 (2.3).
· During the quarter, Bufab acquired the UK company D.C. Handrails and Ironwork Parts Limited (D.C. Iron), with revenue of GBP 14.8 million (2025).

CEO’s overview

Bufab’s positive development continued in the third quarter, with improved organic growth and record-high results.
I am pleased to report a strong third quarter, with organic growth of 6.5 percent and significant improvements in both the gross and operating margins. The development was driven by our continued focus on creating value for our customers by strengthening our offering in customised full-service solutions, sustainability and logistics solutions. Our niche companies also developed positively during the quarter. In parallel, we have actively worked to improve our customer and product mix, implement value-based pricing and maintain a good cost control.

Improved organic growth
Net sales amounted to SEK 2,236 million, representing a growth of 16.6 percent, of which 6.5 percent was organic. The increase was driven by both market share gains and somewhat stronger underlying demand, particularly in segments such as electronics, mechatronics, electrification, digital infrastructure, aerospace and defence. Market conditions in the construction, furniture and automotive industries remained weak. The vast majority of the Group’s companies delivered positive organic growth during the quarter.

Both the gross margin and operating margin reached record levels during the quarter. The gross margin increased by 1.6 percentage points compared with the same quarter last year, amounting to 34.3 percent. Over the past 13 quarters, we have seen strong year-on-year development in the gross margin, and we expect it to remain at a high level in the coming quarters.

Adjusted for the revaluation of contingent purchase considerations and transaction costs related to the acquisition of D.C. Iron at the beginning of the quarter, operating expenses as a share of net sales were slightly lower than in the previous year. This demonstrates that we are maintaining good cost control across the organisation while continuing to drive efficiency improvements to strengthen our competitiveness.

The adjusted operating margin amounted to a strong 15.6 percent. This means that we have now improved profitability year-on-year for eight consecutive quarters. Almost all of the Group’s operating companies delivered improved results, demonstrating the breadth and strength of the Group. Especially, the companies in Europe West and Asia-Pacific reported significant improvements.

Acquisitions driving future growth
Acquisitions are an important part of Bufab’s growth strategy, and we continue to see many attractive opportunities in the market. D.C. Iron, which was acquired at the beginning of the quarter, has developed well and the integration is progressing according to plan.

Strategic growth with existing customers
During the quarter, we won several new customer assignments while also expanding our business with existing customers. An excellent example is our strategic partnership with Knorr-Bremse, a global leader in braking systems for rail vehicles. As part of an extensive initiative to consolidate its supplier base, Knorr-Bremse has selected Bufab’s full-service solution for sourcing, quality assurance and logistics of C-parts. The partnership has grown over time, and Bufab today manages several hundred items and supplies a number of production sites worldwide as a preferred supplier. Through close collaboration, both locally and globally, together with investments in digitalised inventory management, traceability, quality and process development, we have built a strong, scalable solution that creates value for the customer.

Outlook and priorities
Despite continued geopolitical uncertainty, we experienced a slight improvement in market conditions during the quarter. At the same time, we are seeing somewhat higher purchasing prices from Asia. However, our focus going forward remains on what we can influence ourselves: gaining market shares, gradually improving our margins and cost base, and delivering strong cash flow. In an uncertain environment, being a strong and reliable partner becomes even more important to customers, creating good opportunities for Bufab to continue growing.

I would like to extend my sincere thanks to all our Solutionists for their commitment and excellent work during the quarter.

I also look forward to welcoming investors, analysts and media to our Capital Markets Day in Stockholm on 10 December. We will present our strategy, future opportunities and financial ambitions. Welcome!

Erik Lundén
President and CEO

Conference call
A conference call will be held on 23 October 2026 at 10:00 a.m. CEST. Erik Lundén, President and CEO, and Marcus Söderberg, CFO, will present the results. Analysts and investors who wish to ask questions are asked to connect to the presentation via the following Teams link: Click here to join the meeting and use the “Raise Your Hand” function during the Q&A session.
 
Bufab AB (publ)
Box 2266
SE-331 02, Värnamo, Sweden
Corp. Reg. No. 556685-6240
Phone: +46 370 69 69 00
www.bufabgroup.com