Elanders (ELAN) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 were MSEK 2,765, down from MSEK 3,232 in Q1 2025, but organic growth was 1% year-over-year, or 2% when adjusted for FX or excluding Air & Sea, driven by Asia and North America, while Europe was flat or negative after FX adjustment.

• Adjusted EBITA increased 29% to SEK 172 million (MSEK 172), with margin improving to 6.2% from 4.1% year-over-year, despite negative FX impact.

• Adjusted result after tax improved to MSEK 23 from a loss of MSEK -21 in Q1 2025.

• Growth was driven by new sales, price increases, and strong performance in Asia and the Americas, while Europe was stable and North America/UK faced overcapacity.

• Strong demand in March led to higher sales and tied-up working capital, resulting in weaker cash conversion for the quarter.

Financial highlights

• EBITDA increased to MSEK 466 from MSEK 378 year-over-year.

• Free cash flow was MSEK 182, down from MSEK 357 in Q1 2025; cash conversion dropped to 75% from 138% due to increased working capital.

• Net debt stood at MSEK 8,223, with a net debt/EBITDA ratio (RTM adjusted) of 4.4x.

• Free cash flow per share was SEK 5.14, down from SEK 10.09.

• Adjusted EBITA margin in Supply Chain Solutions rose to 7.3% from 4.8%, with EBITA up 29% to SEK 162 million.

Outlook and guidance

• Management is cautiously optimistic for the rest of 2026, citing improved margins, stabilization in demand, and expansion plans in Southeast Asia, including capacity additions in Thailand and entry into Malaysia and Vietnam.

• Overcapacity remains in the US and UK, with actions such as subleasing, warehouse optimization, and exiting major contracts in the UK by 2027 underway.

• No formal forecast for 2026 was provided.