This article first appeared on GuruFocus .
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Revenue:SEK2.454 billion, 4% currency-adjusted growth.
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EBITA:SEK247 million, margin of 10.1%.
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Medical Solutions Sales:Close to SEK1.4 billion, 4% currency-adjusted growth.
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Medical Solutions EBITA Margin:11.7%.
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Engineered Solutions Sales:Close to SEK1.1 billion, 3% adjusted growth.
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Engineered Solutions EBITA Margin:10.3%.
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Cash Flow:SEK287 million.
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Net Investments:Decreased to SEK133 million from SEK188 million.
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Net Financial Liabilities:SEK1.055 billion, 0.7 times EBITDA.
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Return on Capital Employed:13.3%.
Release Date: July 17, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Nolato AB ( NLTBF ) achieved a 4% currency-adjusted growth in the second quarter of 2026, with the strongest growth in the Medical business area.
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The company reported strong cash flow of SEK287 million, maintaining a robust financial position to support its acquisition strategy.
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The Medical Solutions segment saw a 4% growth in sales, with positive developments in the in-vitro diagnostic market and drug delivery systems.
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Engineered Solutions experienced a 19% organic growth in materials, driven by strong demand in consumer electronics and smart home products.
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Nolato AB ( NLTBF ) is advancing its market position with innovative and sustainable solutions, particularly in the data center sector, supporting long-term growth.
Negative Points
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The EBITA margin declined to 10.1% from 11.6% due to increased raw material prices, particularly oil-related costs.
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Start-up costs for new programs negatively impacted the Medical Solutions segment, affecting margins.
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The Engineered Solutions segment faced lower volumes in the hygiene area due to inventory adjustments and decreased market demand.
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A one-off severance cost of SEK6 million impacted the financial results for the quarter.
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Higher administrative costs were incurred due to intensified M&A activities, affecting overall profitability.
Q & A Highlights
Q: What drove the elevated group costs this quarter, and will they revert in the coming quarters? A: Per-Ola Holmstrom, CFO, explained that the elevated costs were due to a combination of factors, including a SEK6 million severance pay and costs associated with an intensified M&A agenda. He noted that last year's costs were unusually low, and this year's are high, suggesting that future costs will likely normalize.
Q: Do you expect to offset the SEK20 million impact from higher input costs in Q3? A: Per-Ola Holmstrom stated that they expect some lingering effects in Q3, with two-thirds of the impact already accounted for in Q2. The remaining effects are expected to be addressed in the beginning of Q3.
Q: What is the expected ramp-up pace for GLP-1 deliveries in Hungary? A: Christer Wahlquist, CEO, mentioned that the ramp-up will be gradual over several years, reaching full volume by 2029. The increase will be more linear rather than in lumpy stages.
Q: Is there a capacity cap for the materials business, and how long can growth be sustained before major investments are needed? A: Christer Wahlquist indicated that the materials business is light on investment needs compared to other areas, allowing for sustained growth without significant capital expenditure.
Q: How quickly can the increased raw material costs be passed through to customers? A: Per-Ola Holmstrom noted that one-third of the cost effects will still impact the beginning of Q3, but they expect to handle it by then, assuming the pricing situation remains stable.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
