Cynca’s Interim Report January-September 2026: Building a stronger Cynca for the future

Highlights of the period July – September 2026
On September 1, the divestment of Flowa Technology AB including its subsidiaries was completed for a purchase price of SEK 6.5 billion on a cash and debt-free basis. The capital gain from the divestment was SEK 3,482 million and was presented as result from discontinued operations. The comments below focus on the Group’s remaining operations.

• Net sales amounted to SEK 513 (606) million
• Adjusted EBITA amounted to SEK 27 (42) million, corresponding to an adjusted EBITA margin of 5.2% (7.0%)
• EBITA amounted to SEK 12 (39) million, corresponding to an EBITA margin of 2.4% (6.5%)
• EBITA per share before dilution amounted to SEK 0.33 (1.04)
• Operating profit (EBIT) amounted to SEK −16 (5) million
• Cash flow from operating activities amounted to SEK −6 (15) million

Summarising comments by CEO Conny Ryk
The quarter has been characterised by the extensive transformation initiated in connection with the separation of our water operations. We have made several strategically important decisions that have had a short-term impact on revenue and earnings but, at the same time, are laying the foundation for a stronger Cynca with higher profitability, improved growth potential and greater resilience. This is our first interim report as Cynca, and we are in the midst of a transformation that is gradually shaping a more focused and competitive group.

Revenue decreased by 15% during the quarter, largely as a result of the measures implemented earlier this year. We are discontinuing unprofitable operations, prioritising business with sound profitability and strengthening our operational structures. Organic growth for the quarter amounted to -1%. Market conditions remain challenging, and several of our businesses continue to be affected by projects with unsatisfactory margins. At the same time, we are seeing gradual improvement. An increasing number of companies are reporting stronger order intake, improved project portfolios and a more favourable business mix. These positive signals are emerging across a broader part of the Group and support our assessment that the market has passed its low point and is gradually moving towards recovery. Combined with our internal efficiency measures, this creates the conditions for a clearer improvement in earnings over the coming quarters.

The pace of change within the Group remains high. We are implementing several initiatives to streamline our operations, strengthen our offering and focus resources on the areas where we see the greatest potential to create long-term value. These measures are progressing according to plan, and we are already seeing improved underlying performance across the majority of our companies. As the negative revenue effects of the transformation gradually subside, we expect these improvements to become increasingly visible in the Group’s reported results. We remain committed to our previously communicated ambition of returning to a double-digit adjusted EBITA margin within the stated timeframe.

We enter the final quarter of the year with confidence and a positive view of the outlook for 2027. Uncertainty regarding the economic environment, interest rates and the broader market remains, but our ability to create value is not dependent on a rapid market recovery. The changes we are implementing are gradually strengthening our competitiveness and creating the conditions for higher profitability and growth over time. While the transformation entails significant short-term challenges, we are convinced that it is laying the foundation for a substantially stronger Cynca, with strong prospects of outperforming the market over the long term.

The Interim Report is available on Cynca’s website: https://www.cynca.se/en/investors/reports-and-presentations/