Ratos (RATO) Q1 2026 earnings summary

Executive summary

• Launched the Ratos 2030 strategy, focusing on long-term investment in Nordic companies, clarifying core and non-core holdings, and returning to an investment company model with new financial targets.

• Net sales for Q1 2026 were SEK 4,497m, up 1% year-over-year, with organic growth of 3.4%.

• Adjusted EBITA/EBITDA rose 21% to SEK 417m–460m, with margin improving to 9.3%.

• Adjusted EPS increased to SEK 0.67 (up 81% YoY); ROCE reached 8.6% and return on equity 15.2%.

• Significant portfolio changes included the divestment of Expin Group and HL Display’s acquisition of Deinzer Holding.

Financial highlights

• Net sales rose to SEK 4,497m, with organic growth of 3.4% for the second consecutive quarter.

• Adjusted EBITA/EBITDA margin improved to 9.3% (up from 7.7%); adjusted net profit more than doubled to SEK 272m.

• Net debt leverage at 1.6x, at the lower end of the 1.5x–2.5x target range; leverage excluding leases at 0.7x.

• Cash conversion strong on LTM basis, though Q1 cash flow was weaker due to seasonal working capital build and FX effects.

• Equity ratio improved to 52.8%; return on capital employed at 8.6%.

Outlook and guidance

• Expecting continued organic growth and margin improvement, especially in Q2, with focus on executing the new strategy.

• Anticipate positive impact from automation projects and add-on acquisitions, with robust financial position and liquidity.

• Optimistic about Plantasjen’s Q2 performance and normalization of TFS service revenues.