I-Tech (ITECH) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly volume growth of 8%, marking the strongest quarter in company history by volume, despite a 7% drop in net sales due to currency effects, not volume or price per unit.

• Gross margin improved to 60% from 56% year-over-year, and operating margin rose to 39% for the quarter.

• Operating profit increased 5% to SEK 18,621 thousand, with net profit up 11% to SEK 15,446 thousand.

• Major customers in Asia, especially Korea, drove 94% of sales, with all key accounts performing at or above last year's levels.

• The company remains asset-light, focusing on sales, marketing, and innovation, with outsourced production.

Financial highlights

• Net sales declined 7% year-over-year to SEK 52,723 thousand, attributed mainly to a 13% USD/SEK currency depreciation; currency-adjusted sales grew 7%.

• Gross margin increased from 35% to 39% sequentially, with SEK 1 million improvement in EBIT.

• Operating cash flow was significantly lower at SEK 9,129 thousand, down from SEK 26,082 thousand, due to SEK 10 million in tax payments and longer payment terms in Korea.

• Cash and cash equivalents at period end: SEK 156,702 thousand; equity: SEK 189,832 thousand.

• Receivables increased as a result of higher Korean sales, not due to extended credit terms.

Outlook and guidance

• Price adjustments are anticipated in response to escalating raw material costs, with some margin softening expected in coming quarters.

• Focus remains on expanding in China and the maintenance segment, identified as key growth areas.

• Ongoing regulatory advocacy in the EU, US, and New Zealand, with new hires planned to support increased activity.

• Market outlook remains positive with a 40% year-over-year increase in newbuilding contracting, especially in tankers and LNG.

• Geopolitical risks and raw material shortages are seen as major uncertainties for growth.