BHG Group (BHG) Q1 2026 earnings summary

Executive summary

• Adjusted EBIT more than doubled year-over-year, up 110% to SEK 44.5 million, driven by higher gross margin, strict cost discipline, and organic growth.

• Net sales reached SEK 2,246.2 million, up 1.9% year-over-year, with organic growth of 4.2% and strong order intake despite a cautious market.

• Leverage ratio reduced to 2.6x from 3.9x year-over-year, reflecting improved profitability and cash flow, with a new long-term financing agreement in place.

• Cash flow from operations improved by over SEK 50 million year-over-year to SEK -50.3 million, a strong result for Q1 given seasonal inventory build-up.

• Strategic focus on operational excellence, AI/data initiatives, and selective bolt-on acquisitions, as presented at Capital Markets Day.

Financial highlights

• Adjusted EBIT margin improved by 1.0 percentage point to 2.0% in Q1 2026.

• Cash flow from operating activities was SEK -50.3 million, a significant improvement from last year.

• Net debt at SEK 1,150.5 million; net debt/LTM adjusted EBITDA at 2.6x.

• EBITDA LTM was SEK 439.3 million.

• Tenth consecutive quarter of year-over-year profitability improvement.

Outlook and guidance

• Maintains a positive market outlook for 2026, expecting continued improvement driven by rising disposable income and faster online growth versus offline.

• Updated financial targets: 10-15% annual net sales growth, adjusted EBIT margin of 5% short-term and 7% medium-term, net debt/EBITDA below 2x, and unchanged dividend policy tied to free cash flow and capital structure.

• Expects strong Q2 performance, with order intake in Q1 indicating higher invoicing in Q2.

• Online market growth further supported by AI developments enhancing the customer experience.

• Uncertainty remains due to geopolitical risks, particularly the war in Iran and its potential impact on oil, shipping, and consumer sentiment.