Boreo (BOREO) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered the sixth consecutive quarter of organic growth, with net sales rising 16% year-over-year to EUR 39.5 million and organic growth at 9%.

• Operational EBIT increased by 28% to EUR 1.7 million (4.3% margin), and cash flow reached EUR 2.1 million with cash conversion at 116%.

• Both Electronics and Technical Trade business areas recorded growth, with Technical Trade up 21% and Electronics up 10%.

• Order books grew, especially in industrial and defense-related businesses, while construction remained subdued but showed cautious improvement.

• EPS decreased to EUR -0.06 due to the absence of prior year non-recurring gains.

Financial highlights

• Net sales up EUR 5.5 million (16%) vs. Q1 2025; 9% organic, 7% from acquisitions.

• Operational EBIT up 28% to EUR 1.7 million; EBIT at EUR 0.9 million, impacted by absence of prior year’s non-recurring gain.

• Gross margin stable at 29% despite changes in sales mix.

• Net debt to operational EBITDA improved to 2.2x from 3.1x year-over-year.

• Return on capital employed at 9.1%; return on trade working capital at 28%.

Outlook and guidance

• Management focuses on accelerating M&A, reviewing operating company roles, and strengthening the balance sheet.

• No separate short-term financial guidance; focus on long-term targets: minimum 15% average annual operational EBIT growth, minimum 15% ROCE, and net debt/EBITDA between 2 and 3.

• Order books support continued growth, especially for deliveries in the latter part of 2026.

• Technical Trade and Electronics outlooks remain solid, with gradual improvements anticipated.

• Earnings improvement expected from systematic organic growth and operating model development.