Ferronordic (FNM) Q1 2026 earnings summary

Executive summary

• Revenue declined 6% year-over-year to SEK 1,128 million but rose 6% in fixed currency, reflecting currency headwinds and operational progress.

• Operating profit more than doubled to SEK 37 million, driven by strong US performance, positive contribution from Germany, and cost control.

• Net profit improved to SEK 32 million from a loss of SEK -150 million, aided by FX gains and lower finance costs.

• Net debt increased to SEK 1,957 million, mainly due to the Housby acquisition and seasonal inventory/rental fleet buildup.

• Integration of Housby in the US completed, expanding territory and rental fleet, with activity accelerating through the quarter.

Financial highlights

• Gross margin improved to 17.7% from 16.3% year-over-year; operating margin rose to 3.2% from 1.1%.

• EBITDA increased 49% to SEK 124 million.

• SG&A expenses decreased 11% to SEK 173 million, now 15.3% of revenue.

• Net Debt/EBITDA at 3.8x, above the long-term target, reflecting Housby acquisition and inventory buildup.

• EPS reached SEK 2.18, up from -10.32 year-over-year.

Outlook and guidance

• US outlook remains optimistic, supported by infrastructure and AI/data center investments.

• Germany expected to continue gradual recovery, with strong aftermarket demand and improved cost base.

• Kazakhstan positioned for growth, especially in mining and road construction, with new management and operational improvements.

• Continued focus on operational improvements, aftermarket growth, and selective bolt-on acquisitions.