Ependion (EPEN) Q2 2026 earnings summary

Executive summary

• Order intake rose 24% year-over-year to 695 MSEK (15% organic), with record sales of 682 MSEK, up 22% (10% organic and currency adjusted).

• EBITA increased 30% to 84.4 MSEK, with margin rising to 12.4% from 11.6% a year ago.

• Net profit rose 50% to 45.4 MSEK, and EPS increased to 1.41 SEK.

• Both Westermo and Beijer Electronics contributed to growth, with notable performance in energy and rail infrastructure segments.

• Free cash flow was 40 MSEK, impacted by higher accounts receivable and inventory.

Financial highlights

• EBITA margin improved to 12.4% (11.6% last year); YTD EBITA up 35%.

• Earnings per share increased 43% to SEK 1.41.

• Free cash flow for the quarter was 40 MSEK, down from 62 MSEK last year.

• H1 2026 net sales: 1,279 MSEK, up 16% year-over-year; EBITA: 159.3 MSEK (117.8 MSEK); EBITA margin: 12.4%.

• Negative currency impact of SEK -2.4 million in the quarter.

Outlook and guidance

• Management remains optimistic for 2026, citing strong order backlog and investments in critical infrastructure.

• Medium-term ambition: organic growth of at least 10% per year and EBITA margin of at least 15%.

• Current quarter achieved 10% organic growth and 12.4% EBITA margin.

• Positive medium-term prospects, but short-term geopolitical and economic uncertainty persists.

• Financial targets include annual organic growth ≥10%, EBITA margin ≥15%, and dividend payments.