Bergman & Beving (BERG) Q2 25/26 earnings summary

Executive summary

• Turnover reached SEK 1,127 million with adjusted EBITA up 11% to SEK 133 million, marking the 23rd consecutive quarter of profit growth.

• Margins improved from 10.5% to 11.8% due to divestments and acquisitions of higher-margin companies.

• Structural measures included divestments (Skydda, Luna Baltics) and six acquisitions, focusing on high-margin, well-managed companies.

• Profitability and EPS increased, with adjusted EPS (R12) at SEK 8.30 after dilution.

• Organic revenue declined 4%, but cost control and margin improvements offset weaker sales.

Financial highlights

• EBITDA/EBITA increased to SEK 133 million (adjusted), with margin at 11.8% (10.5% prior year).

• Turnover for the quarter was SEK 1,127 million; six-month revenue rose 2% to SEK 2,446 million.

• Cash flow from operations was SEK 112 million, up from SEK 87 million last year, driven by lower working capital.

• Operational net debt increased to SEK 1,424 million, mainly due to acquisitions and dividends; Net Debt/EBITDA at 2.5x.

• Adjusted earnings per share (12 months, after dilution): SEK 8.30.

Outlook and guidance

• No near-term recovery expected in core markets, but some positive submarkets observed; management expects gradual improvement in early 2026.

• Group EBIT and margin targets delayed due to Skydda divestment; profit of working capital target (45%) remains for FY 2026-2027.

• Acquisition pipeline remains strong, with continued focus on profitable, niche B2B companies.

• Focus remains on profit expansion, tight cost control, and gross margin protection.