Harju Elekter (HAE1T) Q1 2026 earnings summary

Executive summary

• Q1 2026 was challenging, with results below expectations due to supply chain disruptions and delayed order fulfillment, despite a strong order book at the year's start.

• Swedish krona depreciation negatively impacted profits, and cost reductions were limited to maintain readiness for future demand.

• Order books in Estonia and Sweden remain above average, with most revenue expected in Q2 and Q3 as framework agreement deliveries commence.

• Lithuanian unit faced low sales and high idle capacity, highlighting market challenges and the need for improved sales efficiency.

• Geopolitical tensions and rising input prices are expected to increase costs and impact quarterly result volatility.

Financial highlights

• Revenue declined 6.2% year-over-year to €35.1m (Q1 2025: €37.4m).

• Gross profit decreased 2.4% to €5.5m; EBITDA fell 57.6% to €1.6m; EBIT dropped 82.9% to €0.5m.

• Net profit was €19k (Q1 2025: €2.6m); EPS was €0.00 (Q1 2025: €0.14).

• Operating cash flow turned positive at €3.4m (Q1 2025: -€1.7m), mainly due to receivables collection.

• Investments totaled €1.7m, mainly in production facility expansion and technology.

Outlook and guidance

• Management remains cautiously optimistic for the year, expecting most results in Q2 and Q3.

• Anticipates continued supply chain and input price challenges, with price increases to be passed to customers with a lag.