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Kesko interim report 1.1.-30.9.2026: Kesko's profit improved significantly - technical trade continues as the driver
Financial performance in brief:
7-9/2026
- Group net sales in July-September totalled €3,394.5 million (€3,227.3 million); reported net sales grew by 5.2% while in comparable terms, net sales grew by 4.7%
- Comparable operating profit totalled €231.4 million (€208.1 million), representing an increase of €23.3 million
- Operating profit totalled €235.7 million (€204.0 million)
- Cash flow from operating activities totalled €331.4 million (€287.7 million)
- Comparable earnings per share €0.40 (€0.36); reported earnings per share €0.41 (€0.35)
1-9/2026
- Group net sales in January-September totalled €9,802.6 million (€9,243.8 million); reported net sales grew by 6.0%, while in comparable terms, net sales grew by 4.5%
- Comparable operating profit totalled €527.5 million (€480.4 million), representing an increase of €47.1 million
- Operating profit totalled €523.3 million (€471.2 million)
- Cash flow from operating activities totalled €771.3 million (€587.1 million)
- Comparable earnings per share €0.87 (€0.78); reported earnings per share €0.86 (€0.77)
Key performance indicators
| 7-9/2026 | 7-9/2025 | 1-9/2026 | 1-9/2025 | 1-12/2025 | |
| Net sales, € million | 3,394.5 | 3,227.3 | 9,802.6 | 9,243.8 | 12,474.7 |
| Operating profit, comparable, € million | 231.4 | 208.1 | 527.5 | 480.4 | 654.9 |
| Operating margin, comparable, % | 6.8 | 6.4 | 5.4 | 5.2 | 5.3 |
| Operating profit, € million | 235.7 | 204.0 | 523.3 | 471.2 | 631.3 |
| Profit before tax, comparable, € million | 197.9 | 179.1 | 429.5 | 389.5 | 533.8 |
| Profit before tax, € million | 201.9 | 174.7 | 426.7 | 380.9 | 510.3 |
| Cash flow from operating activities, € million | 331.4 | 287.7 | 771.3 | 587.1 | 879.7 |
| Capital expenditure, € million | 95.0 | 140.7 | 335.9 | 596.2 | 735.7 |
| Earnings per share, €, basic and diluted | 0.41 | 0.35 | 0.86 | 0.77 | 1.02 |
| Earnings per share, comparable, €, basic | 0.40 | 0.36 | 0.87 | 0.78 | 1.07 |
| 1-9/2026 | 1-9/2025 | 1-12/2025 | |
| Return on capital employed, comparable, %, rolling 12 months | 10.6 | 10.6 | 10.4 |
| Return on equity, comparable, %, rolling 12 months | 16.5 | 16.2 | 15.3 |
In this interim report, the comparable change % in net sales has been calculated in local currencies and excluding the impact of acquisitions and divestments and other structural arrangements completed in 2026 and 2025. The comparable operating profit has been calculated by deducting items affecting comparability from the reported operating profit.
Profit guidance for 2026 (specified)
Kesko Group's profit guidance is given for the year 2026, in comparison with the year 2025. Kesko's operating environment is estimated to improve in 2026, but to still remain somewhat challenging. Kesko's comparable operating profit is estimated to improve in 2026. Kesko estimates that its 2026 comparable operating profit will amount to €690-730 million. Previously, the 2026 comparable operating profit was estimated to amount to €670-730 million. The profit guidance does not include impacts from the Dahl acquisition on the comparable operating profit. Key uncertainties impacting Kesko's outlook are developments in consumer confidence and investment appetites, as well as geopolitical crises and tensions.
Outlook for 2027
The operating environment for Kesko is estimated to improve in 2027 in all divisions and all operating countries. Kesko's net sales and comparable operating profit are also estimated to improve in all divisions and all operating countries.
In grocery trade, B2C trade is estimated to pick up slightly and the foodservice business to remain stable. In 2027, the comparable operating margin for the grocery trade division is estimated to continue to be clearly above 6% despite the investments in price and the store site network. The comparable operating profit for the grocery trade division is estimated to improve in 2027 compared to 2026.
In building and technical trade, the cycle has gradually improved, but it has remained muted in new housing construction. In 2027, the cycle is expected to continue to improve. The comparable operating profit for the building and technical trade division is estimated to improve in 2027 compared to 2026 in all Kesko operating countries. The division's comparable operating profit is expected to improve even excluding the impact of the Dahl acquisition.
In the car trade market, demand for new cars is expected to pick up compared to 2026. The net sales and comparable operating profit for Kesko's car trade are estimated to improve in 2027 compared to 2026.
President and CEO Jorma Rauhala:
"Kesko's net sales and comparable operating profit grew in all divisions in the third quarter of 2026. Our net sales totalled €3,394 million, representing an increase of 4.7% in comparable terms. Our comparable operating profit amounted to €231 million, an increase of €23.3 million. Profit growth was the strongest in the building and technical trade division, thanks in particular to good sales and profit in technical trade. Our cash flow from operating activities also strengthened and totalled €331.4 million.
In the grocery trade division, net sales increased by 2.7% and totalled €1,690 million. The division's comparable operating profit amounted to €118.9 million, showing a small increase despite the investments made in prices. K Group's grocery sales grew by 1.8%, while the total grocery market in Finland grew by approximately 0.6%. Our grocery stores have been gaining market share for four consecutive quarters. In Q3, the market share for K Group grocery stores increased by 0.4 percentage points (Kesko's estimate, based on market figures by the Finnish Grocery Trade Association, PTY). Kespro's net sales decreased by 1.0% as the foodservice market remained challenging, but Kespro managed to gain market share. In growing the market share for our grocery stores, strengthening the store network plays a key role alongside price and quality measures. This year we will have in total 67 store renovations in all size segments and 26 store openings - either entirely new stores or replacements for existing ones.
In the building and technical trade division, net sales grew in all operating countries, totalling €1,328 million. Net sales increased by 7.7%, or by 6.4% in comparable terms. The comparable operating profit amounted to €93.8 million, showing a significant increase of €22.1 million. The marked improvement in profit was attributable in particular to technical trade, where net sales grew by 11.3%, with sales growth being the strongest in Finland, Norway and Poland. Good development was also seen in building and home improvement trade, especially in Denmark, Norway and Sweden. Net sales for building and home improvement trade were up by 3.1% in comparable terms, and sales in B2B were stronger than in B2C. Market demand has picked up in e.g. industrial projects, data centres and infrastructure construction, but has remained muted in new housing construction. The €14.1 million share of result from the joint venture Kesko Senukai supported the division's profitability: in addition to good sales development, the share of result increased due to, among other factors, a change in the accounting treatment of supplier bonuses.
In the car trade division, sales increased and comparable operating profit improved slightly. Division net sales grew by 8.1% and totalled €384 million, while the comparable operating profit amounted to €23.5 million. Market demand for new cars picked up, and first registrations of passenger cars and vans were up by 14.5%, while first registrations of the brands represented by Kesko were up by 23.9%. K-Auto's order book for new cars grew thanks to good demand. Our order book for new cars was up by nearly 70% year-on-year and by some 65% since the start of the year. In sports trade, net sales grew while comparable operating profit decreased.
We have now obtained the necessary authority approvals for the acquisition of Dahl operations in Sweden, Norway and Denmark, and the acquisition is expected to be completed on 2 November 2026. This is the largest acquisition in Kesko's history, and will strengthen our technical trade. Kesko's Board of Directors has convened an Extraordinary General Meeting on 30 October 2026, and is planning to arrange a rights issue after the acquisition has been completed.
We are updating our profit guidance, and now estimate that Kesko's comparable operating profit for 2026 will amount to €690-730 million, while our previous estimate was €670-730 million. The profit guidance does not include impacts from the Dahl acquisition on the comparable operating profit. We estimate that Kesko's operating environment, net sales, and comparable operating profit will improve in all divisions and operating countries in 2027."
Further information, audioconference and webcast
Further information is available from Anu Hämäläinen, Executive Vice President, Chief Financial Officer, tel. +358 105 323 713, Hanna Jaakkola, Vice President, Investor Relations, tel. +358 105 323 540, and Eva Kaukinen, Vice President, Group Controller, tel. +358 105 322 338. An English-language audioconference on the results briefing will be held on 29 October 2026 at 9.00 am (EET). The audioconference login is available on Kesko's website at www.kesko.fi. A Finnish-language webcast of the results briefing can be viewed at 10.30 am (EET) at www.kesko.fi.
Kesko's financial statements release for January-December 2026 will be published on 3 February 2027. In addition, Kesko Group's sales figures are published monthly. News releases and other company information are available on Kesko's website at www.kesko.fi.
This is a summary of Kesko Corporation's January-September 2026 interim report. The complete report is attached to this release and also available at www.kesko.fi/en/investor/