This article first appeared on GuruFocus .
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Organic Growth:Flat for the quarter.
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Acquisition Growth:Added 3% to growth.
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Margins:Improved in the US and APAC; slightly down in EMEA.
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Cash Flow:Positive with SEK385 million operational cash flow.
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EBIT:SEK746 million, down 4% year-over-year; up 3% on a currency-neutral basis.
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Net Financials:SEK109 million, over SEK20 million lower than last year.
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Net Profit:In line with last year; up 5% when adjusted for FX.
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EPS:SEK0.94, same as last year; up 5% when adjusted for FX.
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Leverage Ratio:1.9, similar to last year.
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Order Intake:Record order intake for Fenagy with over SEK300 million.
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Branch Expansion:New branch opened in Alabama, first in 20 years.
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Release Date: April 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Beijer Ref AB ( FRA:BRZ0 ) reported stable development across most markets, with organic growth being flat but acquisitions adding 3% to growth.
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Margins improved in the US and APAC regions, with a stable overall margin performance despite some currency headwinds.
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The company maintained positive cash flow and demonstrated strong cash flow management, even while building inventory for the upcoming summer season.
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The green OEM segment, including SCM Frigo and Fenagy, showed strong order intake and record backlogs, indicating robust demand.
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The company has a strong acquisition pipeline and is well-positioned for future expansion, supported by a solid balance sheet.
Negative Points
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Organic growth was flat for the quarter, impacted by weather-related branch closures in the US and tough comparisons in parts of Europe.
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Currency headwinds negatively affected financial results, with a 4% decrease in EBIT compared to the previous year.
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The EMEA region experienced margin dilution due to acquisitions and currency effects, with some headwinds from strong prior-year comparisons.
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The North American market faced challenges due to extreme weather, leading to branch closures and impacting sales.
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Despite stable cash flow, the company acknowledges ongoing opportunities for improvement in inventory efficiency and working capital management.
Q & A Highlights
Q: Can you elaborate on the organic growth trends in North America and Europe, considering the weather-related closures and tough comps? A: Joel Davidsson, CFO, explained that in North America, the underlying growth was slightly better than expected, and in Europe, similar comps are anticipated in Q2. Overall, the underlying organic growth in Q1 was likely up 1% to 2%, with the US showing a positive trend.
Q: What is the phasing of the record order book for OEMs going into Q2? A: Christopher Norbye, CEO, stated that the order book will lead to increased activity and sales ramping up through Q2, Q3, and Q4. Fenagy's order book is expected to extend into 2027.
Q: How does the change to Section 232 impact your partnerships with suppliers? A: Christopher Norbye, CEO, mentioned that there are no changes from partners or market impacts due to Section 232, and the market continues as usual.
Q: Do you agree with the market data indicating improvement in North America, and how does this affect your business mix and margins? A: Christopher Norbye, CEO, noted that the market remains stable, with no significant shifts in March. The company continues to focus on parts and supply, repair, and replacement, which supports stable margins and market share growth.
Q: Can you provide insights into your heat pump exposure in Europe and any shifts due to energy market changes? A: Christopher Norbye, CEO, stated that heat pump exposure is 5% to 10% of HVAC sales in EMEA. While no immediate effects are seen from energy market changes, heat pump sales have grown steadily.
Q: Are you seeing price adjustments in Europe due to material cost increases, and is there any pre-buy activity in anticipation of higher prices? A: Christopher Norbye, CEO, explained that while price increases are expected in the second half of the year, there have been no significant price hikes in EMEA yet. Pre-buy activity is not linked to price changes.
Q: How do you view Home Depot's entry into HVAC, and does it affect your acquisition strategy? A: Christopher Norbye, CEO, indicated that Home Depot's entry does not impact Beijer Ref's business or acquisition strategy, as their focus is on parts, supply, and replacement, differing from Home Depot's commercial focus.
Q: What are your thoughts on cash flow trends and structural improvements in working capital? A: Joel Davidsson, CFO, acknowledged temporary effects on cash flow but emphasized ongoing structural improvements in inventory efficiency, which will continue over the coming quarters and years.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
