Interim report January-June 2026

Second quarter 2026
•    Net sales increased by 11.1 percent to SEK 2,265 (2,039) million. Organic growth amounted to 5.3 percent, and order intake was in line with net sales.
•    Adjusted operating profit (EBITA) amounted to 333 (268) million, corresponding to an operating margin of 14.7 (13.1) percent.
•    Operating profit (EBITA) amounted to 333 (267) million, and the operating margin amounted to 14.7 (13.1) percent.
•    Earnings per share amounted to SEK 1.07 (0.80).
•    Cash flow from operating activities amounted to SEK 305 (245) million, corresponding to a cash conversion of 90 (89) percent.
•    Net debt/EBITDA, adjusted, amounted to 2.4 (2.5)
•    After the end of the quarter, Bufab acquired the UK company D.C. Handrails and Ironwork Parts Limited, with revenue of GBP 14.8 million (2025)
 
CEO’s overview

Bufab delivered strong organic growth and improved gross and operating margins in the second quarter.
I am pleased with Bufab’s development during the quarter. Despite the continued uncertain global environment, we see strong momentum in the areas we can influence. Performance is driven by our focus on creating customer value by strengthening our offering within customised full-service solutions, sustainability and logistics solutions. At the same time, we have worked actively to improve our customer and product mix, implement value-based pricing and maintain good cost control. In line with our strategy of acquiring profitable companies in attractive niches, we completed the acquisition of the British company D.C. Handrails and Ironwork Parts Limited (“DC Iron”) at the beginning of July.

Strong organic growth
Net sales amounted to SEK 2,265 million, and organic growth was 5.3 percent, in line with our growth target, with positive development in all regions. Organic growth was primarily driven by increased market shares and the previously communicated larger projects, which primarily had a positive impact on region West. However, underlying demand remains cautious. During the quarter, we noted good demand in sectors such as energy, digital infrastructure and defence, while demand within construction, kitchens and bathrooms, and the automotive industry remained weak.

Improved results
Both the gross margin and the operating margin reached high levels during the quarter. The gross margin increased by 2.1 percentage points compared with the same quarter last year and amounted to 33.2 percent, as a result of active efforts to improve our customer and product mix, purchasing savings and price adjustments. Over the past twelve quarters, we have seen strong momentum in the gross margin, a development we expect to continue during 2026.

The share of operating expenses was slightly higher compared with the same quarter last year. We continue to maintain a strong focus on cost control throughout the organisation, while at the same time investing in growth. The operating margin amounted to a strong 14.7 percent during the quarter, which means that we have consistently improved profitability compared with the previous year over the past seven quarters. All regions and almost all of the Group’s operating companies improved their results year-on-year.

Acquisition of DC Iron
At the beginning of July, we announced the acquisition of DC Iron, one of UK’s leading distributors of iron work parts, with net sales of GBP 14.8 million in 2025 and an operating margin significantly above Bufab’s profitability target. The acquisition is in line with Bufab’s strategy to acquire profitable companies in attractive niche segments within C-parts and technical components.

Customer recognition
During the quarter, Bufab Shanghai was awarded “Excellent Cooperative Supplier” at Schneider Electric’s Supplier Day 2026. This recognition demonstrates our ability to support customers throughout the value chain, from product development to efficient and resilient supply chain solutions. It strengthens our ambition to continue building long-term partnerships through value-creating services, in line with our strategy.

Outlook and priorities
As previously communicated, Bufab has not been directly affected by the disruptions in the Strait of Hormuz, but we continue to see a cautious approach among customers and somewhat increasing purchase prices from Asia.

The uncertain market situation does not affect our priorities going forward. We are well on track to achieving our margin target and will continue to deliver on our strategy, focusing on what we can influence: gaining market shares, gradually improving our gross margin and cost base, and delivering strong cash flow. Despite the uncertainty in the global environment, it creates opportunities for a strong company like Bufab to gain market shares, as customers increase their focus on reducing costs and securing deliveries.

Finally, I would like to thank all of the Group’s “Solutionists” for their excellent work during the quarter.

Erik Lundén
President and CEO

Conference call
A conference call will be held on 14 July 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