First quarter of 2026 in brief

• Sales totaled SEK 2,357 million (2,453)
• Operating profit (EBITA) was SEK 260 million (271)
• Unchanged EBITA margin of 11.0% (11.0)
• Profit after tax was SEK 181 million (199)
• Earnings per share, basic and diluted, totaled SEK 0.67 (0.74)
• Cash flow from operating activities increased to SEK 225 million (135)
• Net financial liabilities in relation to adjusted operating profit (EBITDA) were 0.5x

Consolidated sales increased, adjusted for currency, by 3% and the EBITA margin was unchanged at 11.0% in relation to the comparative quarter, but rose 0.6 percentage points sequentially.

Business area performance

Medical Solutions sales amounted to SEK 1,345 million (1,397); adjusted for currency, this was an increase of 5%. Operating profit (EBITA) was SEK 159 million and the EBITA margin was 11.8% (12.2). The start-up of new projects and new products that have not yet reached planned volumes have a negative impact on the margin. The In vitro diagnostics (IVD) market area increased compared with the same period last year, with newer products representing a greater proportion. Drug delivery also exhibited growth, while the Surgery area contracted due to inventory adjustments, especially at the beginning of the quarter. Other market areas had stable volumes. Investments in future growth are proceeding according to plan, through capacity expansion in both Hungary and Poland, and through establishing operations in Malaysia. In terms of the Hungarian operations, and our previously communicated major customer project, validation deliveries have continued, and commercial volumes are planned from the end of the second quarter.

Engineered Solutions sales amounted to SEK 1,020 million (1,058); adjusted for currency, this was an increase of 1% in the quarter after having been negative in the fourth quarter. Operating profit (EBITA) was SEK 108 million (107) and the EBITA margin rose to 10.6% (10.1). The Consumer electronics market area increased significantly compared to the same period last year, with smart home products making a positive contribution. Just as in the fourth quarter of the previous year, the Hygiene market area had lower volumes, affected by inventory adjustments, while the Other market area contracted due to factors including lower volumes for white goods. Volumes for the Automotive segment were stable.

Activity in Materials exhibited sharply increased volumes compared with the same period last year, with a full 15% rise in sales, adjusted for currency. The upbeat performance is explained by solid demand in new products and technology areas, chiefly for data centers, but also for defense-related sectors. Telecom products have shown stable volumes, while volumes in the automotive segment contracted somewhat. Materials now accounts for over one fifth of the business area’s sales.

Comments from the CEO

Christer Wahlquist, President and CEO of Nolato AB, commented:

Although our operations are generally showing robust resilience – thanks not least to longstanding and close customer relationships – we will be affected by higher prices of input goods. Although these are passed onto customers over time, there will be temporary effects for as long as the uncertainty persists. We are working tirelessly on the areas we are able to influence, such as innovation, heightened efficiency, and a focused approach throughout the entire supply chain.

Despite an uncertain operating environment, Nolato continues on its strategic journey with increased profitable growth, both organic and acquired. We are working continuously on broadening our offering and strengthening our relationship with both existing and potential customers. Our global capabilities enable us to direct business and production to the regions that best meet our customers’ needs, and to further advance our market positions.

Furthermore, our financial position remains very strong, with net liabilities in relation to operating profit (EBITDA) that amounted to 0.5x at the end of the quarter, enabling an intensified acquisition agenda. Focus is on complementing our existing business with expertise in new materials and technologies.