Vestum (VESTUM) Q1 2026 earnings summary

Executive summary

• Achieved growth in adjusted EBITA/EBITDA, margin expansion to 11.7%, and improved cash flows for the second consecutive quarter.

• Net sales for Q1 2026 were SEK 826 million, down 8% year-over-year, mainly due to divestments and a 2% organic decline.

• Cash flow from operating activities reached SEK 79 million, up from SEK 20 million last year.

• Completed two add-on acquisitions in the UK and divested several low-margin businesses.

• Structural changes, portfolio optimization, and separation of Flow Technology segment are progressing as planned.

Financial highlights

• Adjusted EBITA/EBITDA margin improved to 11.7% from 8.7% year-over-year.

• LTM free cash flow rose to SEK 170 million, with free cash flow per share at SEK 0.07.

• Net financial debt/EBITDA decreased to 3.2x, supported by strong cash flow.

• Net sales for the quarter were SEK 826 million.

• Capital loss of SEK 256 million from divestments weighed on net result.

Outlook and guidance

• Market outlook for Flow Technology remains favorable, supported by strong demand and the UK AMP8 investment plan.

• Niche Products and Solutions segments expected to gradually improve profitability throughout 2026.

• Continued focus on organic development, margin improvement, and operational enhancements across all segments.