This article first appeared on GuruFocus .
Release Date: April 22, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Coor Service Management Holding AB ( FRA:COE ) reported an improvement in EBITDA margin to 5.5%, up from 4.7% last year.
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The company achieved strong cash conversion at 92%, exceeding their target of 90%.
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Coor Service Management Holding AB ( FRA:COE ) reduced its leverage to 2.3 times EBITDA, a significant improvement.
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The company was awarded a gold medal for its carbon emission initiatives, highlighting progress in environmental targets.
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High market activity with new contracts won in Sweden and Norway, indicating strong business momentum.
Negative Points
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Denmark experienced a negative organic growth of 12% due to previously communicated contract losses.
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Net sales declined by 1.3% compared to last year, impacted by a negative foreign exchange effect of 1.7%.
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Sales in the Danish operations declined, affecting adjusted EBITA and EBITDA margins negatively.
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Finland saw a decline in sales by 1% with a negative operating margin of 0.8%.
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Starting up new contracts in Norway may have a slightly negative short-term impact on margins.
Q & A Highlights
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Q: Do you think the current margin level in Sweden, around 10%, is sustainable in the near to mid-term? A: Unidentified_1: The operational efficiency measures and organizational simplifications have positively impacted margins. While we don't provide exact forecasts, the trend is positive, indicating solid development.
Q: Central costs were lower than expected this quarter. Should we expect them to align with last year's levels? A: Unidentified_2: Central costs should be roughly around last year's level. Savings from last year's cost initiatives are reflected in the operating segments, particularly benefiting Sweden and Denmark.
Q: Regarding Denmark, do you see the market turning around and returning to growth soon? A: Unidentified_1: The first half of the year may see the effects of contract losses bottoming out. While positive momentum is noted in sales efforts, the impact hasn't yet reflected in numbers. We hope for improvement as the year progresses.
Q: How has the focus on operational efficiency affected your ability to win new tenders? A: Unidentified_1: High market activity has led us to prioritize tenders with the highest winning potential. Operational efficiency improvements enhance our competitiveness in tenders, maintaining our competitive edge.
Q: How are you handling increased costs, such as inflation and energy prices? A: Unidentified_1: We haven't seen significant impacts yet. Our business model focuses on personnel costs, and we manage energy costs for clients. Inflation could pose a long-term challenge, but also an opportunity for efficiency improvements.
Q: How has the Swedish operation improved compared to the last two years? A: Unidentified_1: We've flattened the organization, focused on operational efficiency, and systematically addressed underperformance. Improvements in personnel cost management and scheduling efficiency are ongoing, contributing to a systematic shift.
Q: What changes are needed for systematic day-to-day improvements in the organization? A: Unidentified_1: Organizational changes aim to drive this shift, removing management layers and fostering a culture where every contribution counts. This cultural shift is crucial for long-term impact.
Q: What is the outlook for wage inflation negotiations in 2026? A: Unidentified_1: We follow collective bargaining agreements and have index clauses in contracts to offset salary increases. Continuous efficiency improvements are essential to manage these costs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
