Dustin Group (DUST) Q1 25/26 earnings summary

Executive summary

• Net sales increased 14.7% year-over-year to SEK 5,487 million, with organic growth of 18.1% driven by strong LCP segment performance and a weak comparison quarter.

• Adjusted EBITA/EBITDA rose to SEK 83 million from SEK 21 million, with margin up to 1.5% from 0.4% last year.

• Cash flow from operating activities improved to SEK 381 million from -SEK 42 million, reducing leverage to 3.1x net debt/EBITDA from 5.2x.

• Gross margin declined to 13.1% from 14.3% due to public sector growth, high PC sales, and price pressure in the Netherlands.

• Updated sustainability/climate targets approved by the Science Based Targets initiative.

Financial highlights

• Gross profit increased to SEK 721 million from SEK 683 million year-over-year.

• Operating profit (EBIT) was SEK 6 million (from SEK -52 million), including SEK -37 million in non-recurring items.

• Net working capital reduced to SEK 139 million from SEK 267 million, mainly due to lower inventory.

• CapEx for the quarter was SEK 46 million, mainly for IT development.

• Cash flow from operating activities per share was SEK 0.28 (from SEK -0.05).

Outlook and guidance

• Signs of market recovery, especially in public sector and large enterprises, but SMB demand remains cautious.

• Continued market uncertainty expected into 2026, particularly due to anticipated memory component shortages.

• Structural drivers like Windows 11 migration and AI-optimized PCs expected to support future demand.

• Proactive measures in place to mitigate supply chain risks.

• Focus remains on strengthening sales, executing strategy, and driving efficiency improvements.