TAKKT (TTK) investor relations material

Executive summary

• Q1 2026 sales declined 10.3% year-over-year to EUR 225.7 million, with organic sales down 6.7% due to negative currency effects and the discontinuation of the Foodservices bid contract business.

• Adjusted EBITDA margin fell to 2.4% from 4.9% last year, impacted by lower sales, negative currency effects, and one-time expenses of just over EUR 1 million.

• Free cash flow was negative at EUR -9.8 million, in line with EBITDA development and expectations, compared to EUR -5.0 million in Q1 2025.

• Profit for the period was EUR -5.0 million, down from EUR 1.3 million a year earlier.

• Internal operational improvements and strategic focus on core businesses are underway, with early signs of progress.

Financial highlights

• Group sales were EUR 225.7 million, down 10.3% year-over-year, with organic decline of 6.7% and significant negative currency effects, mainly from a weaker USD.

• Adjusted EBITDA was EUR 5.5 million (margin 2.4%), down from EUR 11.2 million (5.0%) in Q1 2025.

• Gross profit margin slightly decreased to 39.5% from 39.8% year-over-year.

• EBIT turned negative at EUR -2.7 million, compared to EUR 3.6 million last year.

• Net financial liabilities increased to EUR 138.2 million, mainly due to negative free cash flow; equity ratio remained stable at around 50%.

Outlook and guidance

• Organic sales development for 2026 expected between -7% and +3%, with adjusted EBITDA margin guidance of 2% to 5%.

• Gradual improvement anticipated after a slow start, with return to positive organic growth expected during the year.

• Positive free cash flow targeted for the year, though may be slightly negative if margins are at the lower end; higher CapEx planned for IT and process improvements.

• Strategy includes passing on higher costs to customers and accelerating cost reduction measures.

• Challenging market conditions anticipated due to ongoing geopolitical risks, especially the Iran conflict.