Luotea (LUOTEA) Q2 2026 earnings summary

Executive summary

• Group net sales increased by 1.5% year-over-year in Q2 2026 to EUR 88.1 million, with adjusted EBITA up 36% to EUR 2.5 million, driven by growth in Sweden and property maintenance in Finland, despite a decline in Finnish cleaning and support services.

• For H1 2026, net sales rose 0.4% to EUR 174.2 million, with adjusted EBITA at EUR 2.9 million, up from EUR 2.3 million year-over-year.

• Sweden delivered strong sales growth and improved customer satisfaction, with adjusted EBITA loss halved year-over-year to EUR -0.6 million in Q2, and new private-sector contracts offsetting the loss of a major public contract.

• Leadership transition in Sweden with a new CEO appointed to accelerate growth and profitability.

• The company completed a partial demerger at the end of 2025, with all figures now reflecting only continuing operations.

Financial highlights

• Q2 2026 adjusted EBITA was EUR 2.5 million (2.9% of net sales), up from EUR 1.9 million (2.1%), and operating profit was EUR 0.9 million (1.0% of net sales), up from EUR 0.7 million (0.8%).

• H1 2026 adjusted EBITA was EUR 2.9 million (1.6% of net sales), up from EUR 2.3 million (1.3%), while operating profit was EUR 0.5 million (0.3% of net sales), down from EUR 0.7 million (0.4%).

• Adjusted EBITDA for Q2 was EUR 4.3 million, unchanged year-over-year; rolling 12-month adjusted EBITDA stood at EUR 17.4 million.

• Cash flow after investments was EUR -1.3 million for H1, impacted by negative working capital change of EUR 2.7 million and upfront income tax payments.

• Cash and cash equivalents at period end were EUR 3.9 million; net debt at EUR 9.3 million, with net debt/adjusted EBITDA ratio of 0.5.

Outlook and guidance

• Guidance unchanged: Adjusted EBITDA in 2026 expected to be better or materially better than EUR 7 million in 2025.

• Midterm organic growth target of 4%-5%, adjusted EBITDA margin target of 5%, and cash conversion target of 90%.

• Dividend policy to deliver more than 50% of net profit as dividend.