Pierce Group (PIERCE) Q2 2026 earnings summary

Executive summary

• Q2 2026 net revenue grew 3% year-over-year to SEK 537 million, reaching an all-time high despite operational challenges from a new warehouse management system (WMS).

• Adjusted EBIT for Q2 was SEK 34 million (6.4% margin), up from SEK 32 million last year, reflecting improved profitability.

• Transformation initiatives under the Pierce 2.0 program drove efficiency, including a 40% reduction in white-collar headcount and tech platform upgrades.

• Cash flow improved significantly, with SEK 40 million generated in Q2 and a quarter-end cash position of SEK 319 million.

• The company is finalizing its transformation and entering an expansion phase, targeting new markets and categories such as mountain bikes and scooters/mopeds.

Financial highlights

• Net revenue for Q2 2026: SEK 537 million (up 3% YoY); LTM net revenue: SEK 1,849 million (up 6%).

• Adjusted EBIT for Q2: SEK 34 million (6.4% margin); LTM adjusted EBIT: SEK 61 million (3.3% margin).

• Gross margin for Q2: 43.1%, slightly down from 43.7% last year.

• Overhead costs stable at SEK 75 million, representing 14% of sales, reflecting efficiency gains.

• Cash position at quarter-end was SEK 319 million, with an undrawn SEK 150 million credit facility.

Outlook and guidance

• Management expects warehouse productivity and costs to normalize by the end of Q3 2026.

• Transformation costs to decline as WMS stabilizes and e-commerce platform rollout completes, with full rollout expected by Q1 2027.

• Annual EBIT improvement of SEK 20–30 million projected as transformation costs disappear.

• Growth to be driven by established markets, new localized sites, and expansion into mountain bike and scooter/moped categories.

• Free cash flow will be prioritized for business development and expansion, with no dividends planned in the near term.