Bergman & Beving (BERG) Q2 26/27 earnings summary

Executive summary

• Q2 revenue rose 8% to MSEK 1,222 and adjusted EBITA increased 9% to MSEK 145, extending the profit-improvement streak to 27 consecutive quarters.

• Three divisions improved, while PPE & Utilities remained under pressure; demand picked up late in September after a slow summer.

Financial highlights

• Organic growth was 0% after currency adjustment; acquisitions contributed 6% to Q2 revenue growth.

• Adjusted EBITA margin rose to 11.9% from 11.8%; adjusted diluted EPS was SEK 8.85 versus SEK 8.30.

• Net profit reached MSEK 67 versus MSEK 31; operating cash flow rose to MSEK 130 from MSEK 112.

• Gross margin remained just over 50%; price increases offset higher raw-material, energy, freight and CBAM-related costs.

• H1 revenue increased 4% to MSEK 2,545; adjusted EBITA rose 9% to MSEK 287, with margin at 11.3% versus 10.8%.

Outlook and guidance

• Targets remain EBIT of MSEK 500, EBIT margin above 10% and profit over working capital of 45%; rolling-12-month EBIT was ~SEK 430m.

• Management expects gradual market recovery, prioritizes profit expansion over revenue growth, and continues to pursue profitable organic and acquisition-led growth.

• Price adjustments are expected to add some percentage points to organic growth in the coming quarter; gross margin is expected to remain near current levels.

• PPE & Utilities will focus on improving existing businesses and margins; material improvement is expected to take several quarters, with one more quarter of restructuring costs.