BALCO GROUP (BALCO) investor relations material

Executive summary

• Order intake rose 16% year-over-year to SEK 600 million, with backlog up 18% to SEK 1,693 million.

• Net sales increased 12% year-over-year to SEK 370 million, with organic growth of 11%.

• Adjusted EBITA doubled to SEK 12 million (3.2% margin), but profitability remains below target and an action plan is underway.

• Leadership changes and efficiency measures have been initiated to address profitability.

• Market conditions remain challenging, but signs of recovery are visible, especially in the renovation segment.

Financial highlights

• Adjusted EBITA: SEK 12 million (up from SEK 6 million), margin 3.2% (1.9%); adjusted EPS: SEK 0.21 (0.01); reported EPS: SEK -0.07 (0); operating cash flow: SEK -62 million (-30 million year-over-year).

• Year-to-date net sales: SEK 669 million (647 million last year); YTD adjusted EPS: SEK 0.22 (-0.23); YTD operating cash flow: SEK -30 million (-29 million).

Outlook and guidance

• Renovation demand is expected to gradually improve through 2026, while new build remains weak.

• Profitability improvement is a key focus, with more details on the action plan to be shared in Q3.

• No significant cash flow reversal is expected in the second half of the year.

• Supplementary bank agreement eases loan terms and restricts dividends until Q3 2027.