AddLife (ALIF) Q1 2026 earnings summary

Executive summary

• High EBITDA/EBITA margins sustained at 12.5%, with Labtech improving to 13.1% and Medtech at 12.8%, supported by advanced products and increased acquisition activity.

• Organic growth at 3% (excluding divested UK endoscopy), with group-level organic and acquired revenue growth at 5%.

• Two acquisitions completed: BioSpectrum (UK) and CoaChrom (Austria), both margin accretive and acquired at favorable multiples.

• Profit before tax up 7% YoY, supported by stronger gross margin and lower interest costs.

• Underlying trends are positive, with advanced products and improved market conditions in the UK and Europe.

Financial highlights

• EBITDA/EBITA margin at 12.5%, slightly below Q1 2025 but above historical averages.

• Net sales decreased by 2% YoY, impacted by FX (-4%) and divestment (-3%) effects.

• EBITA was SEK 332m, down 3% YoY; earnings per share rose to SEK 1.04 from SEK 0.98.

• Operating cash flow for Q1 was SEK 104m (240m last year), with cash conversion around 100%.

• Gross margin increased by almost 1% due to higher prices, price management, and advanced product mix.

Outlook and guidance

• Margins expected to remain high, with continued focus on margin improvement and growth investments, especially in Medtech.

• Cash conversion expected to normalize to 95% for the year; inventory-to-sales ratio targeted to return to 16%.

• Positive demand trends in multiple areas, with advanced products as key growth drivers.

• Market conditions in the UK and research funding in Europe are improving.

• Acquisition pace is expected to remain high throughout 2026.