Interim report January-September 2026

April-September 2026

• Net sales were 647.8 MSEK (447.5), an increase of 44.8% compared with the equivalent period in 2025. Organic growth was 9.9%.
• EBITA was 52.5 MSEK (44.5), an EBITA margin of 8.1% (10.0). The period was impacted by items affecting comparability amounting to 27.3 MSEK (0), of which 15.1 MSEK related to the acquisition of Bristan Group Ltd in July and 12.2 MSEK related to an efficiency improvement programme at Bristan, which was initiated in September.
• Adjusted EBITA, excluding items affecting comparability, amounted to 79.8 MSEK (44.5), corresponding to an adjusted EBITA % of 12.3% (10.0).
• Adjusted for items affecting comparability, Bristan contributed 153.1 MSEK to net sales and 18.6 MSEK to adjusted EBITA.
• Earnings per share were 0.65 SEK (0.75).
• Cash flow after investing activities was -615 MSEK (43.6).

January-September 2026

• Net sales were 1,747.4 MSEK (1,474.6), an increase of 18.5% compared to the equivalent period in 2025. Organic growth was 9.3%.
• EBITA was 185.9 MSEK (147.4), an EBITA margin of 10.6% (10.0). The period was impacted by items affecting comparability amounting to 52.3 MSEK (4.5) of which 15.1 MSEK related to the acquisition of Bristan Group Ltd in July and 37.1 MSEK related to an efficiency improvement programme.
• Adjusted EBITA, excluding items affecting comparability, amounted to 238.2 MSEK (151.9), corresponding to an adjusted EBITA % of 13.6% (10.3).
• Adjusted for items affecting comparability, Bristan contributed 153.1 MSEK to net sales and 18.6 MSEK to adjusted EBITA.
• Earnings per share were 2.89 SEK (2.39).
• Cash flow after investing activities was -525.6 MSEK (116.6).

Significant events during and after the quarter
On 28 July 2026, the Group acquired 100% of Bristan Group Limited, the largest supplier of taps and showers in the United Kingdom. Further information is provided in Note 3. Bristan has initiated an efficiency improvement programme aimed at enhancing profitability. The programme is expected to generate annual cost savings of approximately 18 MSEK.

COMMENTS FROM THE CEO

Strong profitable growth and strategic expansion with Bristan

The third quarter delivered continued strong organic growth, improved underlying profitability, and the completion of the strategically important acquisition of Bristan. Net sales increased by 45% compared with the third quarter of 2025 and amounted to 648 MSEK, including Bristan from the acquisition date of 28 July. Excluding Bristan, organic growth amounted to 9.9%, meaning that we exceeded our target for the seventh consecutive quarter.

Underlying profitability developed strongly during the quarter. For the Group excluding Bristan, the EBITA margin improved clearly and amounted to 12.4%, compared with 10.0% in the corresponding quarter of 2025. Adjusted for items affecting comparability, the EBITA margin, including Bristan, amounted to 12.3%. These items affecting comparability related to costs for the acquisition and the adjustment of Bristan's organisation.

Growth was broad-based and driven by several countries, brands and customer segments. The Nordic region delivered particularly strong performance, supported by our leading position in the professional renovation, repair and maintenance (RMI) market, our local presence, and tailored products and services. The markets for new-build construction and private RMI remain challenging. Bristan holds a strong market position within these segments and is therefore well positioned to benefit from future growth when demand in the UK market recovers.

The underlying gross and EBITA margin was strengthened by higher sales, previously implemented efficiency improvements and an improved product mix. Particularly significant were the increased production volumes in Mora and the effects of the organisational changes implemented in Sweden during the first half of the year. At the same time, the external turmoil is resulting in higher purchasing costs. We are working actively with strategic purchasing and product mix to strengthen our long-term profitability, together with price adjustments that reflect cost developments.

The integration of Bristan is progressing according to plan. We have initiated a structured exchange of experience and identified opportunities particularly within strategic sourcing and product portfolio development, creating a foundation for future synergies. As part of the implementation of Bristan's strategy and in response to prevailing market conditions, we are also making changes to the organisation. This involves a workforce reduction of approximately 30 employees and is expected to generate annual cost savings of around 18 MSEK. This is a difficult decision that affects people and is being carried out with respect and consideration for those impacted. At the same time, the changes strengthen Bristan's position for profitable growth and support the Group's long-term value creation.

The quarter confirmed the strength of our leading market positions and our broader geographic presence across the Nordic region, the UK and the Benelux countries. Our larger commercial platform reduces dependence on individual markets and provides a stronger foundation for delivering profitable growth. Looking ahead, our focus remains on developing attractive and sustainable brands, strengthening our local market presence, and building a common group platform that enables synergies and creates long-term value for our customers.