Teqnion (TEQ) Q1 2026 earnings summary

Executive summary

• Profit 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 processes 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%).

• Record-high acquisition activity with 10 companies added in the past year, three in Q1; focus remains on quality over quantity.

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

Financial highlights

• Operating profits and cash flow are trending positively, reflecting operational improvements.

• Free cash flow excluding acquisitions rose 7% to 19.8 MSEK, despite a 106% increase in EBITDA, attributed to working capital tied up in receivables and inventory.

• Organic sales declined a few percent, mainly due to deliberate exit from unprofitable business lines.

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

• Cash and cash equivalents stood at 176.7 MSEK at quarter-end.

Outlook and guidance

• Acquisition pipeline is described as very healthy, with continued focus on both the U.K. and Nordics, and cautious exploration of further EU expansion.

• No formal forecasts are provided, but structural improvements are expected to continue supporting profitability.

• The company aims to double EPS every five years, considering FX effects as short-term noise.

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

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