KB Components (KBC) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw net sales of 670 MSEK, down from 766 MSEK year-over-year, mainly due to lower tool sales and a transition in North America, with delayed ramp-up of new component production, especially for the Rivian R2 model.

• Integration and synergy capture from recent European acquisitions continued, including the acquisition of Rabugino Sp. z.o.o. in Poland and production consolidation in Germany, Slovakia, and Lithuania to improve cost efficiency.

• Asia showed strong growth and profitability, especially in India and China, driven by automation and process improvements.

• The group faced supply chain disruptions and raw material price increases linked to the Middle East conflict, leading to inventory build-up and ongoing risk of material shortages.

• Profit after tax was 22 MSEK (46 MSEK last year), and adjusted profit after tax was 25 MSEK (47 MSEK).

Financial highlights

• Net sales were 670 MSEK, down 13% year-over-year from 766 MSEK.

• Adjusted EBITDA was 92 MSEK (13.7% margin), down from 113 MSEK (14.7% margin) last year.

• Adjusted EBIT was 45 MSEK (6.7% margin), down from 65 MSEK (8.5% margin) last year.

• Adjusted EPS was 0.47 SEK (0.81 SEK last year); EPS: 0.40 SEK (0.80 SEK).

• Operating cash flow was 5 MSEK, in line with last year.

Outlook and guidance

• Demand is fundamentally stable across all segments, but raw material price and supply risks persist due to the Middle East conflict.

• North America sales are expected to improve in Q2 as Rivian R2 volumes ramp up.

• Midterm EBIT margin target of 10% is reaffirmed for 2027, not expected to be reached in 2026.

• Continued focus on structural improvements and production consolidation.