LumenRadio (LUMEN) Q1 2026 earnings summary

Executive summary

• Q1 2026 net sales increased to 58.2 MSEK (56.0), with organic growth of 12.3% and EBITDA at 10.5 MSEK (5.8), driven by strong Building Automation recovery, while Lighting Control declined due to prior year’s extraordinary US deliveries.

• Updated long-term financial targets: revenue over 500 MSEK by 2030 and EBITDA margin above 20% over a business cycle.

• Strategic focus on expanding OEM partnerships and ecosystem offerings, especially in W-BACnet and W-Modbus, is driving long-term growth.

• Net income per diluted share was 0.43 SEK (0.00), and cash flow for the quarter was 4.1 MSEK, reversing a negative 17.1 MSEK last year.

• Capital Markets Day held to present updated strategy and targets.

Financial highlights

• Net sales: 58.2 MSEK (up from 56.0 MSEK YoY); EBITDA: 10.5 MSEK (up from 5.8 MSEK YoY); EBITDA margin: 18.0% (10.4%).

• EBIT rose to 6.5 MSEK (2.1), and net profit improved to 5.1 MSEK (0.4).

• Gross margin improved to 68.0% (63.1%), mainly due to product mix changes in Building Automation.

• Cash in bank at quarter-end was 113.6 MSEK.

• Operating expenses decreased to 51.8 MSEK (53.9), reflecting lower raw material and external costs.

Outlook and guidance

• Long-term targets revised: aim to double organic sales to over 500 MSEK by 2030, maintaining EBITDA margin above 20% over a business cycle.

• Expecting a more normalized Q2 after last year's tariff-related disruptions.

• Continued investment in sales channels and product development, with focus on wireless solutions.

• Large $5.7 million Smart Metering order to be delivered from Q2 2024 to Q1 2025, providing stability.

• Cautiously optimistic approach to headcount and investments, balancing growth with profitability.