Bergman & Beving (BERG) Q1 26/27 earnings summary

Executive summary

• Achieved 26 consecutive quarters of EBITA improvement, with a 9% year-over-year increase and margin rising to 10.7% from 9.9%.

• Earnings per share (EPS) on a rolling 12-month basis improved to SEK 8.55, despite a slight quarterly dip due to higher interest costs and currency revaluation.

• Successfully managed rising raw material, energy, and freight costs through proactive price adjustments, with no expected short-term negative margin impact.

• Focus remains on profit expansion over revenue growth, leveraging acquisitions and operational improvements.

• Cash flow from operating activities increased to MSEK 190, reflecting seasonally strong performance.

Financial highlights

• Revenue for the quarter was MSEK 1,323, nearly flat year-over-year, with 1% organic growth offset by divestments.

• Adjusted EBITA for the quarter was MSEK 142, margin at 10.7% (up from 9.9%).

• Gross margin remained strong at around 50% for three consecutive quarters, driven by organic improvements and favorable product mix.

• Net debt decreased by SEK 100 million in the quarter, with net debt/EBITA at 2.5x, stable year-over-year.

• Return on working capital (P/WC) increased to 37% rolling 12 months.

Outlook and guidance

• Underlying market remains cautious with no significant growth expected in the current quarter; gradual demand recovery anticipated later in the year.

• Positive leverage anticipated when market demand recovers, given higher gross margins and improved cost efficiency.

• Acquisition strategy remains intact, targeting highly profitable B2B companies in niche markets, with a strong pipeline.