Energy Save (ESGR) Q1 26/27 earnings summary

Executive summary

• Net revenue for Q1 2026 decreased by 8% year-over-year to SEK 49.4 million, mainly due to a 27% drop in ODM/WL sales, while ES Energy Save brand sales surged 99% to SEK 15.9 million, driven by new product launches and expanded distribution.

• Operating expenses declined by 4% year-over-year, reflecting ongoing cost discipline and a savings program initiated in late 2024, but EBIT remained negative at SEK -4.2 million with an EBIT margin of -8%.

• New CEO appointed during the quarter, with the previous CEO transitioning to operative Chairman and strategic advisor.

• Launched first propane unit for commercial property, with immediate demand and over 10,000 propane heat pumps delivered to date.

• Entered the Saudi Arabian market and signed a partnership with BlueBox by Swegon.

Financial highlights

• Net revenue: SEK 49.4 million, down 8% year-over-year and 30% sequentially.

• Operating income: SEK 53.3 million, down 7% year-over-year.

• Gross margin improved to 30% from 28% in the prior year quarter.

• EBIT: SEK -4.2 million; EBIT margin: -8%.

• Cash and cash equivalents at period end: SEK 23.6 million, down 20% year-over-year.

Outlook and guidance

• Q2 2026 expected to be seasonally weaker due to stock balancing by ODM/WL customers, but a rebound is anticipated in the second half if planned orders materialize.

• Full-year 2026 breakeven targeted, contingent on order realization.

• Market recovery trends observed, with confidence in both ODM/WL and ES Energy Save brand sales.

• EU policy initiatives (Accelerate EU) and regulatory clarity support long-term demand for heat pumps.