Luotea (LUOTEA) investor relations material

Executive summary

• Group net sales increased by 1.5% year-over-year in Q2 2026, reaching EUR 88.1 million, with adjusted EBITA up to EUR 2.5 million from EUR 1.9 million, driven by growth in Sweden and property maintenance in Finland despite a decline in Finnish cleaning and support services.

• Adjusted EBIT rose to EUR 2.2 million from EUR 1.5 million year-over-year.

• Sweden delivered strong sales growth and improved customer satisfaction, though adjusted EBITA remained negative at EUR -0.6 million, showing significant improvement from the prior year.

• Leadership transition in Sweden with a new CEO, Rikard Nyhrén, appointed to accelerate growth and profitability, effective by February 2027.

• The company completed a partial demerger at the end of 2025, with all figures now reflecting only continuing operations.

Financial highlights

• Adjusted EBITDA for Q2 2026 was EUR 4.3 million, unchanged year-over-year; rolling 12-month adjusted EBITDA stood at EUR 17.4 million.

• Cash flow after investments was EUR -1.3 million for H1 2026, impacted by negative working capital change and upfront income tax payments.

• EUR 5 million term loan repaid, EUR 2.7 million dividend paid, and leases repaid totaling EUR 10.5 million.

• Cash and cash equivalents at EUR 3.9 million at period end; net debt at EUR 9.3 million, with net debt/adjusted EBITDA ratio of 0.5.

• Net cash generated from operating activities before NWC was EUR 5.6 million in H1 2026.

Outlook and guidance

• Guidance unchanged: Adjusted EBITDA in 2026 expected to be better or materially better than EUR 7 million in 2025.

• Midterm organic growth target of 4%-5%, adjusted EBITDA margin target of 5%, and cash conversion target of 90%.

• Dividend policy to deliver more than 50% of net profit as dividend.

• Group costs are forecasted to decrease and normalize in 2026.