I-Tech (ITECH) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly volume growth of 8%, marking the strongest quarter in company history, despite a 7% drop in net sales due to currency effects.

• Gross margin improved significantly, reaching 60%, and operating margin rose to 39%.

• Major customers in Asia, especially Korea, drove 94% of sales, with all key accounts performing at or above last year's levels.

• Net profit increased 11% to SEK 15,446 thousand, and operating profit rose 5% to SEK 18,621 thousand.

• Key customer volumes normalized after prior financial difficulties.

Financial highlights

• Net sales declined 7% year-over-year to SEK 52,723 thousand, attributed mainly to a 13% USD/SEK currency degradation, while currency-adjusted sales grew 7%.

• Gross margin increased from 56% to 60% year-over-year; operating margin rose from 31% to 39%.

• Operating cash flow was significantly lower due to SEK 10 million in tax payments and longer Korean payment terms.

• Cash and cash equivalents at period end: SEK 156,702 thousand; equity: SEK 189,832 thousand.

• Receivables rose as Korean sales, with longer payment terms, grew from 30% to 45% of total.

Outlook and guidance

• Market outlook remains positive with a 40% year-over-year increase in newbuilding contracting, especially in tankers and LNG.

• Price adjustments are planned in response to escalating raw material costs.

• Margins may soften slightly in coming quarters due to higher production costs, but no major impact expected.

• Focus remains on expanding in China and the maintenance segment for future growth.

• Ongoing innovation and partnership activities are expected to support future growth.