KB Components (KBC) Q1 2026 earnings summary

Executive summary

• Q1 2026 was a soft quarter with net sales of SEK 670 million, down from SEK 766 million, mainly due to lower tool sales and delayed ramp-up of new business in North America, particularly for the Rivian R2 model.

• Integration and synergy capture from recent European acquisitions continued, with production consolidation underway, including the acquisition of Rabugino in Poland and relocation of production from Germany to Slovakia and Lithuania.

• Asia showed strong growth and profitability, especially in India and China, driven by automation and process improvements.

• The quarter was marked by restructuring and efficiency initiatives to optimize production and expand customer relationships.

Financial highlights

• Net sales were SEK 670 million, down 13% year-over-year.

• Adjusted EBITDA was SEK 92 million (13.7% margin), down from SEK 113 million (14.7% margin) last year.

• Adjusted EBIT was SEK 45 million (6.7% margin), down from SEK 65 million (8.5% margin) last year.

• Adjusted EPS was SEK 0.47, compared to SEK 0.81 last year.

• Operating cash flow was SEK 5 million, in line with last year.

Outlook and guidance

• Expecting improvements in North America as new component volumes ramp up, especially for Rivian R2, in the latter part of Q2.

• Demand remains fundamentally stable across all segments, but raw material price volatility and supply chain risks persist due to the Middle East conflict.

• Midterm EBIT margin target of 10% is reaffirmed for 2027, not expected to be reached in 2026.

• Structural improvements and production consolidations will continue, focusing on optimizing production and expanding customer relationships.