Arjo (ARJO) Q1 2026 earnings summary

Executive summary

• Organic revenue grew 3.8% year-over-year, driven by strong U.S. capital sales and robust performance in Rest of World markets, despite currency and tariff pressures.

• Gross margin declined slightly to 42.6% due to unfavorable product mix, currency effects, and U.S. tariffs.

• Cash flow from operations improved to SEK 237 million, with cash conversion at 52.7% versus 41.3% last year.

• Strategic initiatives are ongoing, with a new long-term direction and financial targets to be presented in H2 2026.

• Profit after financial items increased to SEK 148 million from SEK 125 million, and EPS rose to SEK 0.40 from SEK 0.34.

Financial highlights

• Gross margin at 42.6%, down from 43.7% year-over-year, mainly due to unfavorable product/country mix and U.S. tariffs.

• Adjusted EBITDA at SEK 456 million (down from SEK 486 million), margin at 16.9% (vs. 17.0%).

• Adjusted EBIT at SEK 190 million (down from SEK 208 million); EBIT margin improved to 6.8% from 5.9% due to lower restructuring costs.

• Net profit for the period was SEK 108 million, up from SEK 91 million year-over-year.

• Operating cash flow improved to SEK 237 million, up SEK 53 million year-over-year.

Outlook and guidance

• Strategy work ongoing, aiming for clarity and execution focus; new strategy and financial targets to be communicated in H2 2026.

• Organic sales growth for 2026 is expected within the 3–5% target range.

• Preparing for potential cost pressures from energy and transportation, especially related to Middle East developments.

• No specific forecasts provided for impact of ongoing global crises, but mitigation plans are in place.