Fagerhult (FAG) Q2 2026 earnings summary

Executive summary

• Order intake increased 8.6% year-over-year in Q2 to SEK 2.68 billion, driven by multiple mid-sized deals, but organic order intake declined 0.5%.

• Net sales rose 6.8% to SEK 1.978 billion in Q2, but declined 1.4% organically after currency and acquisition adjustments.

• Profitability improved from Q1 but remained below expectations; Q2 EBITA before IAC was SEK 113 million (margin 5.7%, down from 7.4%).

• Strategic review led to new priorities: restoring margins, cost reductions, efficiency improvements, and a stronger focus on Europe and innovation in energy-efficient lighting.

• Operating cash flow for Q2 was negative at SEK -9 million, reflecting weaker profitability and cash flow.

Financial highlights

• Q2 EBITA before IAC was SEK 113 million, down 16.9% year-over-year; EPS before IAC was SEK 0.08.

• Order backlog at quarter-end was SEK 1.916 billion, up from both Q1 and the prior year.

• H1 net sales were SEK 3.795 billion, up 0.2% (down 5.2% organically); H1 EBITA before IAC was SEK 158 million (margin 4.2% vs. 7.9% last year); H1 EPS was -SEK 0.09.

• Operating cash flow YTD was SEK -169 million (vs. SEK +188 million last year).

• Net debt increased due to acquisitions and weak cash flow, with net debt/EBITDA at 4.18.

Outlook and guidance

• Cost-saving and consolidation initiatives are expected to deliver SEK 220 million EBITA improvement over 6–12 months.

• Restructuring costs estimated at SEK 350–400 million, mainly non-cash, to be recognized across Q4 and Q1.

• Focus on efficiency, competitiveness, and innovation in core European business, with a target of 10% EBITA margin and 6% organic growth.

• No formal forecast provided, but order intake above SEK 2 billion and a growing backlog are seen as positive indicators.