AFRY (AFRY) Q1 2026 earnings summary

Executive summary

• Order backlog increased 6.4% year-over-year to SEK 21.5 billion, reaching an all-time high and driven by strong intake in Energy, supporting future growth.

• EBITA/EBITDA margin excluding items affecting comparability improved to 7.5% from 7.1% year-over-year, supported by higher utilization and efficiency measures.

• Utilization rate rose to 72.2% from 71.1%, reflecting efficiency gains.

• Net sales declined 6.3% to SEK 6,325 million, impacted by challenging markets, capacity adjustments, and currency effects.

• Restructuring phase is nearing completion, with costs expected at the upper end of SEK 200–300 million guidance and focus shifting to growth sectors.

Financial highlights

• Q1 net sales: SEK 6,325 million; rolling 12-month net sales: SEK 25.3 billion.

• EBITA/EBITDA (excluding IAC): SEK 473 million; margin 7.5% (7.1%); rolling 12-month EBITDA margin: 7.3%.

• Net income: SEK 240 million (250), EPS SEK 2.12 (2.21).

• Operating cash flow improved to SEK 418 million from SEK -191 million sequentially, but was SEK -74 million in Q1.

• Available liquidity increased to SEK 5.2 billion; net debt/EBITDA at 2.7x.

Outlook and guidance

• Order backlog strength positions for profitable growth; focus on backlog conversion, operational harmonization, and utilization improvements.

• Restructuring costs to be finalized in Q2 2026, at the upper end of SEK 200–300 million.

• Focus on sectors with significant growth potential, including a new Defense segment.

• Leverage expected to remain at or below target by year-end despite dividend and M&A activity.