BALCO GROUP (BALCO) investor relations material

Executive summary

• Order intake for Q1 2026 was SEK 270 million, stable year-over-year, with no large projects booked.

• Net sales declined by 5% to SEK 299 million, impacted by a -2% currency effect.

• Order backlog increased by 21% year-over-year to SEK 1,493 million.

• Profitability remains below target, with continued cost-saving and structural measures underway.

• Operating cash flow improved significantly to SEK 32 million from SEK 1 million last year.

Financial highlights

• Net sales: SEK 299 million (down from SEK 316 million year-over-year), organic growth -3%, FX impact -2%.

• Adjusted operating result (EBITA): SEK 0–0.4 million (vs. -SEK 3 million last year); adjusted EBITA margin 0.1% (vs. -0.9%).

• Adjusted EPS: SEK 0.01 (vs. -SEK 0.24); reported EPS: -SEK 0.03 (vs. -SEK 1.31).

• Equity: SEK 738 million (vs. SEK 757 million); equity asset ratio: 44% (vs. 47%).

• Interest-bearing net debt/adjusted EBITDA: 5.5x (up from 3.9x year-over-year, down from 6.0x at year-end 2025).

Outlook and guidance

• Continued improvement expected in renovation activities in Sweden and Norway; gradual recovery anticipated in Finland.

• Danish market remains challenging, with slow recovery due to high investment thresholds and long permitting times.

• Nordic new build segment expected to recover slowly, especially for balcony companies.

• Positive outlook for Germany, U.K., and maritime segment, with focus on profitable growth.

• Geopolitical uncertainty and macroeconomic factors create a cautious and uncertain outlook.