Sdiptech (SDIP) Q2 2026 earnings summary

Executive summary

• Achieved 14% year-over-year net sales growth and 11% organic growth, with strong contributions from both organic initiatives and M&A, including two acquisitions in Q2 2026.

• Completed a major divestment program, selling 11 companies and the elevator business, streamlining the portfolio for future growth.

• Strategic focus shifted to disciplined capital allocation, future acquisitions, and improving return on capital employed.

• Cash flow generation reached 70% in Q2, supporting continued investments and acquisitions.

Financial highlights

• Net sales reached SEK 1,289 million, up 14% year-over-year; organic growth was 11%.

• Adjusted EBITA/EBITDA grew by 11% to SEK 261 million, with a margin of 20.3% (down from 20.9% last year).

• Cash conversion was 70% for the quarter and 90% for the last 12 months.

• Free cash flow per share improved year-over-year; EPS improved but was impacted by capital losses from divestments.

• Net debt/Adjusted EBITDA reduced to 2.80, within the target range below 3.0.

Outlook and guidance

• Focus on accelerating M&A activity and achieving long-term targets: >15% adjusted EBITA growth, ROCE >15%, and leverage ratio below 3.0.

• Positive demand trends in electrification, security, and water treatment expected to support future growth.

• Water & Bioeconomy margin expected to stabilize at 21%-22% going forward.

• Safety & Security profitability at a structurally higher level due to product mix and service/software sales.