Bufab (BUFAB) Q2 2026 earnings summary

Executive summary

• Achieved strong organic growth of 5.3% year-over-year, with net sales rising 11.1% to SEK 2,265 million and positive development in all regions except Americas and UK/Ireland.

• Gross margin improved by 2.1 percentage points to 33.2%, reflecting effective cost control and value-based pricing.

• Adjusted operating margin reached 14.7%, with adjusted operating profit up 24.2% to SEK 333 million.

• Acquisition of DC Iron, a leading UK distributor with margins above 14% EBITA, completed in July, aligning with the strategy of acquiring profitable niche companies.

• Bufab Shanghai recognized as an excellent cooperative supplier by Schneider Electric, reflecting strong customer partnerships.

Financial highlights

• Total growth for the quarter was 11.7%, with 7.2% contributed by the acquisition of novia and a slight negative currency impact.

• Cash flow from operating activities increased 24.4% to SEK 305 million, with a cash conversion of 90%.

• Net debt/EBITDA remained stable at 2.4x, with net financial debt at SEK 2,859 million.

• Profit after tax rose 33.3% to SEK 202 million.

• EBITDA (adjusted) up 23% to SEK 339 million.

Outlook and guidance

• Expect continued improvement in gross margin through 2026, supported by value-based pricing and product mix optimization.

• Well on track to achieve long-term margin targets for 2026.

• Market demand remains cautious, with strong sectors in energy, digital infrastructure, and defense, while construction, kitchen, bathroom, and automotive remain weak.

• Focus remains on market share gains, gross margin improvement, cost control, and strong cash flow.

• Management confident in achieving margin targets and delivering strong cash flow despite global uncertainty.