Duroc (DURC) Q1 25/26 earnings summary

Executive summary

• Net sales decreased by 11% to SEK 626.4 million year-over-year, with organic growth at -11%.

• EBITDA fell to SEK 5.5 million from SEK 26.5 million, and EBIT dropped to SEK -20.3 million from SEK 2.7 million.

• The quarter was impacted by costs related to the relocation of Duroc Rail and the seasonally weak performance of newly acquired Broddson.

• Active portfolio rebalancing is underway, with divestment processes for IFG and Drake and capital being freed for prioritized business areas.

Financial highlights

• Adjusted EBIT was SEK -18.9 million (previous year SEK 3.5 million), with an adjusted EBIT margin of -3.0% (0.5%).

• Cash flow from operating activities improved to SEK 27.1 million from SEK -9.9 million.

• Earnings per share were SEK -0.35 (SEK -0.06).

• Liquid assets at period end were SEK 92.9 million (SEK 60.4 million), and net debt including IFRS 16 was SEK 371.4 million (SEK 148.4 million).

• Equity at period end was SEK 1,085.9 million (SEK 1,139.4 million), with a solidity of 52% (64%).

Outlook and guidance

• Demand in the Industrial & Trade segment is stable and expected to follow general economic trends.

• Polymer segment faces challenging market conditions, especially in Europe due to overcapacity; some recovery is seen in the US.

• The company expects to generate significant value from planned divestments and portfolio rebalancing.