Pierce Group (PIERCE) Q1 2026 earnings summary

Executive summary

• Q1 2026 adjusted EBIT improved to SEK 2 million from SEK -11 million year-over-year, despite SEK 6 million in transformation costs, reflecting a return to profitability and growth.

• Net revenue grew 5% year-over-year (10% FX-neutral) to SEK 421 million, with LTM revenue at SEK 1,835 million, supported by market share gains and business momentum.

• Transformation program (Pierce 2.0) drove cost reduction, organizational streamlining, tech overhaul, and a 40% reduction in white-collar headcount since Q2 2023.

• Expanded product assortment, improved logistics, and increased customer satisfaction, with Trustpilot score stable at 4.4.

• Cash flow for the period was SEK 36 million, with a strong cash position of SEK 273 million at quarter-end.

Financial highlights

• Gross profit for Q1 2026 was SEK 174 million (41.3% margin), with LTM gross margin at 42.3%.

• Adjusted EBITDA for Q1 2026 was SEK 4 million (2.7% margin); LTM adjusted EBITDA was SEK 104 million (5.7% margin).

• Last 12 months adjusted EBIT reached SEK 59 million (3.2% margin), absorbing SEK 26 million in transformation costs.

• Overhead costs decreased to 16.4% of sales, a 1.5 percentage point improvement year-over-year.

• Net working capital decreased to SEK 149 million (8.1% of LTM net revenue), with inventory stable year-over-year.

Outlook and guidance

• Full rollout of new e-commerce and warehouse management systems expected in H1 2026, with further annualized EBIT improvement of SEK 20–30 million anticipated.

• Transformation costs expected to decline significantly after H1 2026 as new tech stack is completed.

• Expansion into 12 new localized markets and new categories (mountain bike, scooter/moped) underway.

• Long-term targets: outgrow the European online motorcycle market and achieve 5–8% adjusted EBIT margin, with net debt/EBITDA below 2.0x.

• Free cash flow to be reinvested in business development; no dividends planned.