Teqnion (TEQ) Q1 2026 earnings summary

Executive summary

• Profitability and positive cash flow have been maintained every year since the financial crisis, but 2024–2025 levels were below expectations; recent quarters show improvement due to new strategies and better operators.

• Net sales increased by 17% year-over-year to 474.4 MSEK, driven by acquisitions despite a 5% decline in organic sales due to discontinuation of unprofitable business.

• EBITA surged 106% year-over-year to 68.0 MSEK, with a record Q1 EBITA margin of 14.3% (up from 8.1%).

• The group added three new businesses in Q1 and has acquired about 10 companies in the past year, a record pace, with a strong acquisition pipeline.

• The business is now organized into two areas, Teqnion Nord and Teqnion Väst, both showing improved performance and scalability.

Financial highlights

• Operating profits and cash flow are trending positively, with Teqnion Nord's EBITDA margin at 11.6%, nearly double the previous quarter.

• Free cash flow excluding acquisitions rose 7% to 19.8 MSEK, despite a 106% increase in EBITDA, due to working capital tied up in receivables and inventory from strong end-of-quarter sales.

• Profit before taxes increased 14% year-over-year to 53.0 MSEK.

• Net debt/EBITDA improved to 1.6x from 1.8x year-over-year.

• Margins have remained strong for three quarters, supported by mix and improved profitability in U.K. businesses, despite weak organic growth.

Outlook and guidance

• No formal forecasts are provided, but management expects continued structural improvements and a healthy acquisition pipeline, especially in the U.K. and Nordics.

• Continued focus on acquiring high-quality niche companies and improving operational efficiency.

• The focus is on sustainable organic earnings growth without sacrificing margins, with ongoing efforts to increase both sales and profitability.

• Management aims to double EPS every five years, considering FX effects as noise over the long term.

• New group structure with two business areas (Nord and Väst) to enhance strategy and follow-up.