Festi (FESTI) Q2 2026 earnings summary

Executive summary

• Group sales grew 6.4% year-over-year to ISK 46.3bn, with growth across all product categories, though results were below expectations due to geopolitical uncertainty and store closures.

• EBITDA was ISK 3.9bn, down 0.8% year-over-year; profit for the quarter was ISK 1.3bn, a decrease of ISK 120m; profit for H1 2026 was ISK 1,517 million, down from ISK 1,699 million.

• Operating cash flow dropped sharply due to increased working capital tied up in inventories and receivables, mainly from higher global fuel prices.

• Total comprehensive income for the period was ISK 1,470 million, compared to ISK 1,771 million in the same period last year.

Financial highlights

• Revenue for the six months ended 30 June 2026 was ISK 86,408 million, up from ISK 81,365 million year-over-year.

• EBITDA for the period was ISK 6,473 million, compared to ISK 6,427 million in the prior year.

• Margin from sales was ISK 11.5bn, up 4.7% year-over-year, but margin level declined by 0.4 p.p. to 24.9%.

• Cash from operating activities was ISK 0.3bn, down 94.5% year-over-year.

• Basic earnings per share for the period were ISK 4.22, compared to ISK 4.93 in the prior year.

Outlook and guidance

• EBITDA guidance for 2026 lowered by ISK 500m to ISK 16.0–16.5bn; CAPEX guidance unchanged at ISK 7.5–8.0bn.

• Margins in the fuel segment are expected to remain under pressure due to commodity price volatility.

• Continued geopolitical uncertainty, high fuel prices, and inflation expected to pressure costs.