Humana (HUM) investor relations material

Executive summary

• Profitability improved in Sweden, with margin rising from 4.3% to 4.6% year-over-year, driven by efficiency programs and higher occupancy.

• Strategic acquisitions in Norway (Familiehjelpgruppen AS) and Sweden (Homsan AB) expanded presence and added annual revenues of NOK 120m and SEK 63m.

• Recognized as Sweden's most sustainable brand in care/healthcare for the fourth time.

• Continued share buybacks totaling SEK 37m in the quarter, with treasury shares now 8.3% of total.

• Net revenue for Q1 2026 was SEK 2,477m, down 2% year-over-year, with organic growth at -0.5%.

Financial highlights

• Year-over-year revenue decreased by SEK 450m due to divestments, currency headwinds, and lower personal assistance volumes.

• Adjusted EBIT for the quarter was SEK 108m, flat year-over-year; adjusted operating margin was 4.6% in Q1 2026.

• Operating profit was SEK 99m, down 31% year-over-year due to a prior-year capital gain.

• Free cash flow LTM was SEK 205m; SEK 32m used for acquisitions, SEK 50m for dividends, SEK 37m for share buybacks.

• Earnings per share were SEK 0.80, down from SEK 1.44.

Outlook and guidance

• Margin improvements expected to continue in 2024, with further gains from efficiency programs and digitalization/AI initiatives.

• Positive outlook for organic growth due to a strong signed pipeline and focus on filling unused capacity.

• Midterm EBIT margin target of 7% expected to be reached within 2–3 years.

• Increased growth and profitability anticipated in the latter part of 2026, supported by higher occupancy and acquisitions.

• Continued focus on organic growth, especially in disability and elderly care.