This article first appeared on GuruFocus .
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Net Sales:SEK3.1 billion, 2.5% below last year.
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Organic Growth:Negative 3.3% overall; Sweden and Finland grew 3% to 4%, Denmark declined 15%, Norway declined 10%.
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EBITDA Margin:5.5% in Q2, up from 5.2% last year.
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Adjusted EBITDA:SEK170 million.
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Net Income:SEK87 million; adjusted net income SEK95 million.
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Cash Conversion:90% on a last 12-month basis.
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Leverage:Stable at 2.5 times EBITDA.
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Items Affecting Comparability:SEK30 million, mainly restructuring costs in Denmark.
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Adjusted EBITDA Margin in Denmark:2.7%, down from 4.0% last year.
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Adjusted EBITDA in Finland:SEK4 million, up from SEK3 million last year.
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Operating Margin in Norway:5.4%, consistent with last year.
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Release Date: July 15, 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 ( LTS:0R8Q ) reported a stable EBITDA margin of 5.5% in Q2, an improvement from 5.2% last year.
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The company achieved strong organic growth in Sweden and Finland, with growth rates of 3% to 4%.
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Cash conversion remains solid at 90%, aligning with financial targets.
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The company successfully extended significant contracts in Denmark, including a large IFM contract with DSB.
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Coor Service Management Holding AB ( LTS:0R8Q ) is actively participating in numerous tenders, indicating strong market activity and potential future growth.
Negative Points
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Denmark experienced a significant decline in sales, with a 15% decrease due to previously communicated contract losses.
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Norway reported a negative growth of 10% due to fluctuations in the oil and gas sector, impacting overall performance.
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Organic growth was negative at 3.3% for the quarter, indicating challenges in maintaining growth momentum.
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The company faced restructuring costs in Denmark, impacting financial performance with SEK30 million in items affecting comparability.
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The arbitration proceedings in Denmark resulted in a financial impact of SEK20 million to SEK25 million, which will be recognized in Q3.
Q & A Highlights
Q: How are the margins in Norway holding up despite lower variable volumes, and what is the outlook for these margins going forward? A: Ola Klingenborg, President and CEO, noted that despite the drop in variable volumes, margins have not decreased, indicating strength in the underlying Norwegian business. The company is working towards improving margins and sees a positive trend, although it may take some time to reach desired levels.
Q: What is the current situation with Denmark's margins, and what are the expectations for the second half of the year? A: Ola Klingenborg explained that Denmark is facing challenges due to contract losses from 2025, but efforts are being made to stabilize margins by improving operational efficiency. While no specific forecasts were provided, there is room for improvement as the situation stabilizes.
Q: Can you provide insights into the organic growth outlook in the Swedish market and the impact of variable volumes? A: Ola Klingenborg mentioned that all segments in Sweden are growing, and there is optimism that the 3% growth rate could persist. While predicting variable volumes is challenging, there are positive signs, and efforts are being made to upsell to existing customers.
Q: How is the company addressing pricing and cost inflation in its contracts? A: Ola Klingenborg stated that while there is tough price competition in new tenders, the company is able to outweigh cost increases in existing contracts. There is potential for more efficient pricing, especially in smaller contracts, and efforts are ongoing to ensure adequate price adjustments.
Q: What is the status of the arbitration process in Denmark, and are there similar processes elsewhere? A: Ola Klingenborg confirmed that the arbitration process in Denmark is related to a concluded contract and does not affect ongoing business. There are no similar processes of this size elsewhere.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
