First quarter 2026

• Consolidated sales increased 1.9% to SEK 1,376.4 M (1,351.3).
• Organic growth amounted to 5.3% (–12.9), adjusted for acquired sales and currency effects between the years.
• Consolidated operating profit (EBIT) totaled SEK 161.8 M (165.8), with an operating margin (EBIT) of 11.8% (12.3).
• Profit after financial items amounted to SEK 147.7 M (151.5).
• Earnings per share amounted to SEK 4.53 (4.58) before and after dilution.

Comments from VBG Group’s President & CEO Anders Erkén
VBG Group began 2026 with a stable first quarter, despite a geopolitical situation that remained turbulent and negative exchange rate effects. Net sales increased 1.9% compared with the year-earlier quarter, whereas organic growth adjusted for acquisitions and exchange rate effects was 5.3%. Our extensive offering and our geographic presence provide a stable foundation, even in a more fragmented and volatile business environment.

All of our divisions reported organic growth adjusted for exchange rate effects and acquired sales. Growth was driven primarily by price adjustments and good demand in the side-by-side segment in North America, as well as the defense and processing industry segments.

Operating profit (EBIT) amounted to SEK 162 M (166), with an operating margin (EBIT) of 11.8% (12.3). Exchange rate effects, due primarily to the strengthening of the SEK, had a negative impact of approximately SEK 22 M on the operating profit (EBIT). With systematic price adjustments and efficiency enhancements, however, we have been able to manage these effects, retain good profitability and strengthen gross profit margins despite increased raw material prices, especially for copper and aluminum. Efforts to fully compensate for cost increases will continue in the second quarter.

Order bookings were on a par with the first quarter of 2025, but increased 8% including acquired revenue adjusted for exchange rate effects. Our strong operating cash flow and our financial position provides scope for investments and acquisitions in line with our strategy.

We are continuing to implement structural measures to strengthen our capacity and efficiency. The consolidation of Mobile Thermal Solutions’s production operations in Toronto, Canada is proceeding as planned, with relocation scheduled for the fourth quarter of 2026 and full production capacity beginning in the second quarter of 2027. Furthermore, investments are planned for a new, modern production facility in Dobřany, in the Czech Republic, where Ringfeder Power Transmission will be consolidating the division’s current production facilities in Neunkirchen, Germany and Dobřany for increased capacity and efficiency.

Our divisions
Performance in our divisions was stable.

Truck & Trailer Equipment reported organic growth of 1 per cent, excluding acquired revenue and exchange rate effects, with a stable gross profit margin and operating profit. The development in sales was driven by the defense segment and the acquisition of Ledson. We are also seeing incipient growth from low levels in the trailer segment.

Organic growth in Mobile Thermal Solutions adjusted for exchange rate effects and acquired sales amounted to 6%, driven by the side-by-side segment in North America where the share of vehicles equipped with climate systems is continuing to rise.

Ringfeder Power Transmission reported an improved gross profit margin and organic growth of 12 per cent, excluding acquired revenue and exchange rate effects, with growth across all geographic markets, particularly in energy supply, defense and mechanical engineering.

The future
The market outlook going forward is characterized by geopolitical and macroeconomic volatility, which makes forecasting developments difficult. At present, we are not seeing any direct impact on sales, but are monitoring developments closely given the continued significant level of uncertainty in the business environment.

Going forward, our focus will be on capitalizing on the strong order book, enhancing capacity and efficiency and ensuring cost offsets in order to create long-term value.

I would like to extend my warmest thanks to all employees in VBG Group for their commitment and professionalism, allowing us to continue to deliver according to plan and develop our operations in a challenging external environment.