Orthex (ORTHEX) Q2 2026 earnings summary

Executive summary

• Net sales grew by 5.2% in Q2 2026 to EUR 21.6 million, driven by strong 12% growth in the Nordics and the Storage category, while rest of Europe declined due to price negotiations and raw material cost spikes.

• Profitability declined as adjusted EBITA margin fell to 6.3% in Q2 (from 8.4%), impacted by higher raw material costs and strategic project expenses.

• The company maintained resilience through rapid price increases, disciplined cost control, and ensured raw material availability.

• Strategic focus remains on expanding in Europe, building consumer preference, and launching new products, especially in the storage segment.

• Growth initiatives in Europe were temporarily paused but are set to resume as price negotiations conclude.

Financial highlights

• Q2 2026 net sales: EUR 21.6 million (+5.2% YoY); H1 2026 net sales: EUR 43.2 million (+4.0% YoY).

• Adjusted EBITA for Q2 2026 was EUR 1.4 million (6.3% margin), down from EUR 1.7 million; EBITA including items affecting comparability was EUR 0.8 million.

• Gross margin for Q2 2026 decreased to 24.9% from 28.1%.

• Net cash flows from operating activities improved to EUR 1.8 million in Q2 and EUR 5.3 million in H1.

• Investments in Q2 totaled EUR 0.6 million, mainly for product novelties and new moulds; H1 investments reached EUR 2.2 million.

• Net debt decreased by EUR 4.3 million to EUR 15.8 million; leverage at 1.1x.

Outlook and guidance

• Focus remains on accelerating European sales growth as price negotiations are largely complete and consumer confidence shows signs of recovery.

• Long-term targets: annual organic net sales growth above 5% group-wide and 10% outside Nordics, EBITA margin above 18%, leverage below 2.5x, and pay-out ratio above 50%.

• Profitability remains pressured by high raw material costs, but targets are seen as achievable as cost pressures ease.

• Dividend payout remains in line with targets, with EUR 0.23 per share approved, paid in two instalments.

• No short-term outlook published.