ITAB Group (ITAB) Q2 2026 earnings summary

Executive summary

• Q2 2026 earnings were stable, with net sales of 3,201 MSEK, a 1% year-over-year decrease, and an improved EBITA margin of 5.6% (5.4%).

• Net profit rose to 61 MSEK from 21 MSEK year-over-year, driven by lower restructuring costs and improved tax rate.

• Strong performance in Nordics, Spain, France, and the US offset underperformance in Italy, UK, and the Middle East.

• HMY acquisition is fully integrated, with synergy realization at 50% and on track for MEUR 30 annualized synergies by 2027.

• New CEO appointed in May 2026, bringing extensive retail and leadership experience.

Financial highlights

• Adjusted EBITA for Q2 2026 was 180 MSEK (up from 175 MSEK), with margin improving to 5.6% from 5.4%.

• Net profit for Q2 2026 was 61 MSEK, up 190% from 21 MSEK in Q2 2025.

• Net sales for Q2 2026 were 3,201 MSEK, down 1% currency adjusted year-over-year.

• Operating cash flow for Q2 was -112 MSEK, impacted by increased working capital.

• Net debt (excluding leasing) was 2,424 MSEK, down 553 MSEK year-over-year but up sequentially due to working capital needs.

Outlook and guidance

• Full synergy effect of MEUR 30 expected by late 2027, with about 50% executed so far.

• Margin improvement is anticipated in Q3 and Q4 as price increases offset input cost inflation.

• Focus remains on profitability ahead of growth, with a targeted EBIT margin of 7-9%.

• Working capital is expected to follow a seasonal pattern, with significant cash release anticipated in Q4.

• Short-term market conditions remain challenging due to macroeconomic and geopolitical uncertainties.