Momentum Group (MMGR) Q1 2026 (Q&A) earnings summary

Executive summary

• Revenue for Q1 2026 was SEK 736 million, flat year-over-year, with a 6% decline in organic growth and sales for comparable units due to cautious demand, timing effects, and geopolitical tensions.

• EBITA fell 8% to SEK 70 million, and operating profit declined 8% to SEK 56 million, mainly due to lower service and project volumes and cautious market conditions.

• Both business areas experienced negative organic sales, with industry showing sluggishness and infrastructure impacted by lower service and project activity, especially in Denmark.

• Activity improved towards the end of Q1, particularly in March, but not enough to offset a weak start.

• Two acquisitions were completed or announced, adding approximately SEK 80 million in annual revenue and expanding into the UK market.

Financial highlights

• EBITA margin declined to 9.5% from 10.3% year-over-year, with operating margin at 7.6% (8.3% last year).

• Net profit was SEK 38 million, down from SEK 44 million; EPS was SEK 0.75 (0.85).

• Gross margin increased despite weaker volumes, driven by pricing discipline and favorable mix.

• Rolling 12-month revenue increased 5% to SEK 3,098 million, with EBITA up 2% to SEK 331 million and net profit up 2% to SEK 190 million.

• Return on working capital (EBITA/WC) was 56% (58% prior year); equity/assets ratio was 37%.

Outlook and guidance

• Short-term market conditions remain challenging due to ongoing geopolitical uncertainty, with customers expected to remain cautious.

• Postponed maintenance is expected to return, mainly in Q2 and Q3, as underlying demand remains.

• The group is focused on cost control, efficiency, sales promotion, and positioning for gradual market recovery.

• The company targets at least 15% annual earnings growth over a business cycle, aiming for EBITA of SEK 680 million by 2030.

• Continued investment in sales activities and customer relationships to maintain market position ahead of recovery.