Addtech (ADDT) Q2 25/26 earnings summary

Executive summary

• Net sales for Q2 increased 6% year-over-year to SEK 5,450 million, with 4% organic growth and strong project outcomes in Industrial Solutions.

• EBITA grew 11% to SEK 844 million, with margin rising to 15.5% from 14.9% last year, reflecting continued profitable growth.

• Cash flow from operating activities strengthened to SEK 859 million in Q2, up 45% year-over-year, driven by earnings growth and working capital improvements.

• Three acquisitions completed year-to-date, adding SEK 465 million in annual sales and strengthening the organization.

• High customer activity, a well-filled order backlog, and a reorganized structure support future growth.

Financial highlights

• Net sales for the first half rose 7% to SEK 11,289 million, with 3% organic and 7% acquired growth, offset by a -3% FX effect.

• EBITA for the first half increased 11% to SEK 1,766 million, with a margin of 15.6%.

• Earnings per share before dilution reached SEK 3.80, up 13% year-over-year.

• Operating cash flow for the period was SEK 1,336 million.

• Return on capital employed stable at 22%.

Outlook and guidance

• Short-term outlook remains positive, with strong order intake, high customer activity, and a well-filled acquisition pipeline.

• Temporary dip in electrical transmission expected to recover early next year; long-term growth potential unchanged.

• Expect improvement in automation margins from Q4 as cost-cutting measures take effect.

• Ambitious goal to double earnings every five years, with organizational changes to support future growth.

• Some uncertainty persists in certain customer segments, especially for larger projects and investments.