Addtech (ADDT) Q1 26/27 earnings summary

Executive summary

• Net sales increased by 6% year-over-year to SEK 6,172 million, with strong contributions from Automation, Electrification, and Safety segments.

• EBITA rose 11% to SEK 1,026 million, with margin improvement to 16.6%, driven by product mix, pricing, and acquisitions.

• Two acquisitions were completed in the quarter, contributing SEK 230–250 million in annual sales and supporting international expansion.

• Positive business momentum with high customer activity and solid order intake across most segments.

• Cash flow and financial position strengthened, supporting ongoing acquisition strategy.

Financial highlights

• Operating profit increased 11% year-over-year to SEK 870 million, with an operating margin of 14.1% (13.5%).

• EBITA margin strengthened to 16.6% (up from 15.8%), with all business areas increasing gross margins.

• EPS improved to SEK 2.30 (2.00) year-over-year.

• Cash flow from operating activities increased to SEK 605 million (477), and cash conversion remained stable.

• Inventory levels increased due to acquisitions and supply chain factors but remain healthy relative to sales.

Outlook and guidance

• Strong order intake and backlog indicate positive momentum, with growth expected to be weighted toward the second half of the year.

• Organic sales growth anticipated to gradually improve in coming quarters.

• Margin levels expected to remain strong, with some variability by segment and quarter.

• Acquisition pipeline remains robust, supporting continued high pace of acquisitions and international expansion.

• Positive outlook supported by a diversified portfolio and strong order book in electrical infrastructure, electrification, and defence.