Interim Report January–June 2026: Continued strong order intake and significant earnings improvement

Second quarter

• Order intake increased by 24 percent to 695 MSEK (558); adjusted for currency effects and acquisitions, the increase amounted to 15 percent.
• Net sales increased by 22 percent to 682 MSEK (561); adjusted for currency effects and acquisitions, net sales increased by 10 percent.
• EBITA increased to 84.4 MSEK (65.1).
• The EBITA margin strengthened to 12.4 percent (11.6).
• Profit after tax increased to 45.4 MSEK (30.3).
• Earnings per share improved to 1.41 SEK (0.99).
• Free cash flow amounted to 40.0 MSEK (62.4).
  

First half-year

• Order intake increased by 33 percent to 1,473 MSEK (1,109); adjusted for currency effects and acquisitions, the increase amounted to 23 percent.
• Net sales increased by 16 percent to 1,279 MSEK (1,106); adjusted for currency effects and acquisitions, net sales increased by 6 percent.
• EBITA strengthened to 159.3 MSEK (117.8).
• The EBITA margin increased to 12.4 percent (10.7).
• Profit after tax strengthened to 85.9 MSEK (62.3).
• Earnings per share improved to 2.67 SEK (2.09).
• Free cash flow amounted to 30.9 MSEK (50.1).
• Operating profit measure changed from EBIT to EBITA.
  

COMMENTS FROM THE CEO, JENNY SJÖDAHL

Ependion is well positioned for continued profitable growth

“Ependion continued to develop strongly during the second quarter of 2026. Good demand across most of our focus segments, combined with the strategic investments we have made in recent years, resulted in increased order intake, higher sales and improved profitability. Particularly noteworthy is the development in the Beijer Electronics business entity, where the long-term transformation work is now clearly translating into increased stability, growth and higher margins. At the same time, investments in new technology, complementary acquisitions and new market establishments are beginning to contribute increasingly clearly to the Group’s development. Overall, Ependion is well positioned for continued profitable growth.

Order intake increased by 24 percent to 695 MSEK during the quarter, meaning that we have now reported three consecutive quarters of strong growth in order bookings. Demand was good across most of our prioritized segments, not least energy, where investments in areas such as electrification, data centers and energy infrastructure continue to create attractive business opportunities. Adjusted for currency effects and acquisitions, order intake increased by 15 percent.

Both business entities contributed to the positive development. For the Westermo business entity, order intake increased by 26 percent to 452 MSEK. The train segment was somewhat weaker in the quarter, while rail infrastructure and energy showed good growth. Adjusted for currency effects and the acquisition of Welotec, the increase was 9 percent. For the Beijer Electronics business entity, order intake increased by 22 percent to 244 MSEK, mainly driven by continued strong development in the energy area, with customers in areas such as data centers and charging infrastructure. At fixed exchange rates, the growth rate was 24 percent. Ependion’s order backlog increased to 1,319 MSEK at the end of the second quarter of 2026.

The strong order intake in recent quarters was gradually converted into higher sales during the period. Group sales increased by 22 percent to a record-high 682 MSEK, corresponding to organic and currency-adjusted growth of 10 percent. The Westermo business entity increased its sales by 28 percent to a record-high 452 MSEK. Adjusted for currency effects and acquisitions, growth amounted to 9 percent. For the Beijer Electronics business entity, sales increased by 11 percent to 231 MSEK. Adjusted for currency effects, the increase was 13 percent.

The Group’s increased sales, together with continued good cost control, contributed to an improvement in EBITA to
84 MSEK and a strengthened EBITA margin of 12.4 percent.

Westermo reported EBITA of 69 MSEK with a margin of 15.3 percent. Earnings were impacted by non-recurring items amounting to approximately 8 MSEK. Beijer Electronics continued its positive earnings development and increased its EBITA margin to 12.3 percent, corresponding to an EBITA of 28 MSEK.

Free cash flow amounted to 40 MSEK in the quarter. Cash flow continued to be negatively affected by increased inventories of critical components to ensure delivery capability in a component market that remains strained, with longer lead times and higher prices. We continuously work to secure component availability and offset cost increases through price adjustments. Trade receivables also increased as a result of higher sales, particularly toward the end of the period.

We remain highly focused on driving profitable growth based on the investments we have made in recent years in increased market presence and a strengthened offering. It is particularly pleasing that Welotec continued to develop positively and made a strong contribution to the growing business in the energy area. We continue to evaluate potential complementary acquisitions.

The defense segment continued to develop positively during the quarter, with growing customer interest in both Westermo and Beijer Electronics. Against the backdrop of attractive long-term market prospects, targeted investments are being made gradually to strengthen positions in the segment. The focus is on further developing the offering, including through verification against relevant military standards, and on strengthening dedicated sales organizations with expertise from the defense industry. Westermo has already seen a clear effect from the strong demand, with the order booking rate during the first half-year more than doubling compared with the previous year, albeit from relatively low levels.

In summary, we saw continued positive development during the period despite a turbulent external environment. With strong order intake, increased sales and improved earnings, we are gradually approaching our financial targets. As at the previous reporting date, our assessment is that geopolitical uncertainty will persist, with potential impact on our business in the short term. Through our completed investments and clear strategies, however, Ependion is well equipped to benefit from the underlying growth in our focus segments, both in the short and medium term. We therefore view our opportunities for profitable growth in 2026 with optimism.”

INVITATION TO PRESENTATION OF THE REPORT

Today, Ependion will host a webcast and teleconference for the press and the financial community, during which President and CEO Jenny Sjödahl and CFO Joakim Laurén will present the company and comment on the report.

Time:       Wednesday, 15 July 2026, 14:00 CEST

To participate in the webcast, please use the following link:
https://ependion.events.inderes.com/q2-report-2026/register

To participate in the teleconference and ask questions verbally, please register using the following link. Upon registration, you will receive dial-in details and a conference ID to access the conference.
https://events.inderes.com/ependion/q2-report-2026/dial-in

The report and presentation material will be available at www.ependion.com. A recording of the webcast will also be available on the company’s website after the event.

Welcome to participate.