Highlights of the period January – March 2026

• Net sales amounted to SEK 826 (900) million
• EBITA amounted to SEK 93 (74) million, corresponding to an EBITA margin of 11.2% (8.2%)
• Adjusted EBITA amounted to SEK 96 (78) million, corresponding to an adjusted EBITA margin of 11.7% (8.7%)
• EBITA per share before dilution amounted to SEK 0.25 (0.20)
• Operating profit (EBIT) amounted to SEK 24 (6) million
• Cash flow from operating activities amounted to SEK 79 (20) million

 Summarising comments by CEO Simon Göthberg

During the first quarter, Vestum continue to generate growth in adjusted EBITA and cash flows, while the adjusted EBITA margin strengthened from 8.7% to 11.7%. This marks the second consecutive quarter of increasing adjusted EBITA and cash flows combined with margin expansion. Organic sales growth for the quarter amounted to -2%, driven by subdued volumes in the Solutions segment, while the other two segments generated positive organic growth. During the quarter, we continued to invest in growth and completed two add-on acquisitions. Net financial debt in relation to reported EBITDA decreased to 3.2x supported by strong cash flow generation.

 
As expected, the Flow Technology segment had a strong start to the year, delivering EBITA growth of 59% and margin expansion from 18.1% to 23.9%, driven by both acquisitions and organic growth. We generated double-digit organic EBITA growth in both the Nordics and the UK. Growth initiatives implemented during 2025 resulted in sales synergies during the quarter, primarily in the UK. We are also beginning to see positive effects from the new UK investment plan AMP8, under which more than GBP 100 billion is expected to be invested over the coming five years to improve water infrastructure. We have a strong pipeline of strategic acquisition candidates in both the Nordics and the UK. Market conditions for the segment remain favourable, and we expect continued stable development going forward.
 
In the Niche Products segment, EBITA increased by 15%, driven by a combination of the divestiture of a low-margin company earlier in the year and organic growth. The EBITA margin strengthened once again, from 10.0% to 13.3% during the quarter. We remain focused on further improving profitability in the segment and expect margins to continue to improve.
 
In the Solutions segment, we completed several strategic divestitures at the end of 2025 and in the first quarter of 2026, as communicated in connection with the Year-End Report 2025. Overall, these divestitures contribute to lower volumes and reduced earnings in the short term, while creating good conditions for earnings growth going forward. The effects of these measures will be seen progressively during 2026. During the first quarter, the EBITA margin decreased from 4.8% to 1.7%. In addition to the divestitures, the margin downtick was driven by the completion of low-margin projects entered into during 2025, as well as cold winter weather, primarily in January and February. Our focus remains on improving profitability in the segment.
 
Our efforts to improve cash flow over recent years continue to deliver results, and cash flow during the quarter was strong, in line with expectations. Free cash flow amounted to SEK 26 million, compared with SEK -32 million in the corresponding period last year.
 
In connection with the Year-End Report 2025, Vestum communicated its intention to implement a structural separation of the Group, whereby parts of the Flow Technology segment are intended to be organised as a separate business. The Board is also evaluating additional structural alternatives for the separated Flow Technology business, including a potential future divestment. This work is progressing according to plan.
 
Market outlook for the Flow Technology segment remains favourable, while conditions are expected to gradually improve in both Niche Products and Solutions, where we have increased our focus on organic development. We look forward to the remainder of 2026.
 
The Interim Report is available on Vestum’s website: https://www.vestum.se/en/ir/financial-reports/