Instalco (INSTAL) Q2 2026 earnings summary

Executive summary

• Q2 2026 delivered strong organic growth and improved profitability across all segments, supported by operational improvements, digitalisation, and market recovery.

• Order backlog reached SEK 10,937 million, up 17%, driven by robust performance in Sweden and Norway.

• Instalco 2.0 initiatives and the launch of Instalco AI are enhancing productivity and operational efficiency.

• Majority ownership in Fabri AG was acquired post-quarter, expanding the platform into Germany.

• Strategic acquisitions and leadership changes, including the appointment of a new CEO, support long-term growth.

Financial highlights

• Net sales grew 10.3% year-over-year to SEK 3,874 million in Q2 2026, with organic growth at 8.4%.

• EBITA increased by 22.1% to SEK 274 million, margin improved to 7.1% from 6.4% last year.

• Order backlog grew 17% to SEK 10,937 million, with 14.8% organic growth.

• Cash flow from operations was SEK 104 million, impacted by higher accounts receivable from strong invoicing.

• LTM net sales reached SEK 14,106 million; LTM EBITA was SEK 927 million.

Outlook and guidance

• Market recovery is gaining momentum but remains uneven across regions and customer groups.

• Strategic targets include ≥10% average sales growth, 8% EBITA margin, and 100% cash conversion over a business cycle.

• Dividend payout targeted at 30% of net profit; net debt/EBITDA to remain below 2.5x.

• Continued focus on operational improvements, project execution, and leveraging AI for growth.

• Germany seen as a significant long-term opportunity; no broad recovery expected in Finland near-term.