AQ Group (AQ) Q1 2026 earnings summary

Executive summary

• Net sales rose 3% year-over-year to SEK 2,358 million in Q1 2026, with operating profit up 5% to SEK 225 million and profit after tax at SEK 179 million.

• Strong growth in data centers and defense segments, with doubled transformer output and record order intake in the US.

• Cash flow from operating activities improved to SEK 339 million, supporting a net cash position exceeding SEK 1 billion.

• Weakness in Med-tech and food packaging, and underutilization in Mexico, New York, Bulgaria, and India.

• No acquisitions completed in the quarter due to high price expectations, but a robust pipeline remains.

Financial highlights

• Earnings per share before dilution increased to SEK 1.95 from SEK 1.81 year-over-year.

• Organic growth was 6.3%, acquired growth 1.4%, and currency effects -4.8%, resulting in net sales growth of 2.9%.

• Operating margin (EBIT) was 9.6%, and profit margin before tax (EBT) was 9.4%, both higher than the prior year.

• Cash and cash equivalents rose to SEK 1,117 million, with interest-bearing liabilities reduced to SEK 420 million.

• Net cash position excluding leasing is SEK 1.1 billion; including leasing, nearly SEK 700 million.

Outlook and guidance

• Continued high demand expected in defense and data centers, with further growth anticipated.

• Output for data center components and transformers is set to double in 2026 versus 2025, with further increases expected in 2027.

• Management targets doubling earnings per share every five years.

• Underutilized factories in Bulgaria, Mexico, New York, and India present future growth potential.

• Organic growth target remains at +10% per year, though Q1 organic growth was 6.3%.