Elon (ELON) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 were 1,093 MSEK, down 3.5% year-over-year, with B2C up 1.4%, B2B down 20.4%, and Solutions down 13.3%.

• EBIT improved to 18.8 MSEK from -13.4 MSEK, with a margin of 1.7% versus -1.2% last year.

• Net income was 8.5 MSEK, up from -9.1 MSEK; EPS was 0.57 SEK compared to -0.61 SEK.

• Cost reductions and structural actions initiated in 2025 are delivering results, with lower operating expenses and improved efficiency.

• A long-term service agreement was signed with Cylinda, and a major B2B contract was secured with HBV for appliance deliveries.

Financial highlights

• Gross profit was 190.6 MSEK (199.2 MSEK last year), with a gross margin of 17.4% (17.6%).

• Operating cash flow was -183.4 MSEK, impacted by an 89 MSEK payment of historical chemical tax debt; adjusted, cash flow improved by 40 MSEK year-over-year.

• Investments totaled 3.1 MSEK, mainly in digitalization and e-commerce projects.

• Net debt at quarter-end was 357.6 MSEK (349.5 MSEK last year).

Outlook and guidance

• Focus remains on profitable growth, efficiency, and improved cash flow despite ongoing market challenges.

• The HBV contract is expected to drive increased B2B sales volumes from Q2 2026.

• Medium-term targets: 5% annual organic sales growth, 3% adjusted EBIT margin, net debt/EBITDA below 1.5x, and dividend payout of at least 50% of annual profit.