Bawat Water Technologies (BAWAT) H1 2026 earnings summary

Executive summary

• Achieved a 50% year-over-year increase in sales for H1 2026, driven by Ballast-as-a-Service (BaaS) and service activities.

• Gross margin rose to 79.8% from 43.0% in H1 2025, exceeding expectations due to large orders and BaaS growth.

• EBITDA loss narrowed to SEK -2.3m from SEK -9.9m in H1 2025, with guidance for full-year EBITDA adjusted to around breakeven.

• Strategic expansion in Northern Europe with three BaaS units and participation in major European and African tenders.

Financial highlights

• H1 2026 sales: SEK 12.4m (H1 2025: SEK 8.3m); gross profit: SEK 9.9m (H1 2025: SEK 3.6m).

• Gross profit ratio: 79.8% (H1 2025: 43.0%).

• EBITDA: SEK -2.3m (H1 2025: SEK -9.9m); net result: SEK -7.7m (H1 2025: SEK -14.9m).

• Cash flow from operations improved to SEK -3.6m (H1 2025: SEK -14.0m).

• Cash at period end: SEK 3.1m; net interest-bearing debt: SEK 60.6m.

Outlook and guidance

• Full-year 2026 EBITDA guidance adjusted to around breakeven due to delayed mobile system orders.

• Gross profit ratio expected to remain above 70% for the full year, with increased efficiency and repeat orders.

• Positive operating profit anticipated in H2 2026, driven by all business segments.