This article first appeared on GuruFocus .
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Net Sales:SEK7.85 billion, a 1% decline compared to Q1 last year.
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Organic Sales Growth:2% positive for the quarter.
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Adjusted EBITA:SEK639 million, a 9% decrease, with an EBITA margin of 8.1%.
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Organic EBITA Growth:Negative 12% for the quarter.
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Cash Flow from Operating Activities:SEK188 million, a 67% increase year-on-year.
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Leverage Ratio:Maintained at 2.3 times.
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Cash Conversion Rate:79% on a rolling 12-month basis.
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Net Interest-Bearing Debt:SEK9.5 billion, essentially unchanged from year-end.
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Equity Ratio:Improved to 50%.
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Industry Organic Sales Growth:4% for the quarter.
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Trade Net Sales:SEK2.2 billion, 4% lower than a year ago.
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Trade Adjusted EBITA:SEK153 million, 9% lower than a year ago.
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Services Net Sales Growth:1%, first growth since mid-2023.
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Services EBITA:Negative 30% year-over-year for the quarter.
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Release Date: April 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Storskogen Group AB ( LTS:0AA9 ) reported organic sales growth of 2% for the first quarter.
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The company maintained a stable leverage ratio at 2.3 times, indicating financial discipline.
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Cash flow improved significantly to SEK188 million compared to SEK113 million a year ago.
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The company completed two acquisitions in April, adding SEK103 million in annual sales.
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Storskogen Group AB ( LTS:0AA9 ) has a strong M&A pipeline, particularly in automation, digitalization, and health and well-being sectors.
Negative Points
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The first quarter did not meet overall earnings expectations, with a negative organic EBITA growth of 12%.
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Services segment underperformed with a negative 30% EBITA year-over-year, impacted by construction market headwinds and weather disruptions.
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Trade segment experienced a 4% decline in net sales and a 9% decrease in adjusted EBITA, partly due to FX headwinds.
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The company faced FX headwinds that negatively impacted both sales and EBITA.
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The construction of industrial buildings segment faced high startup costs, affecting profitability in the quarter.
Q & A Highlights
Q: Could you provide more details on the factors affecting the margin in the service segment, and has price pressure increased since Q4? A: The overall headwind in construction remains similar to Q4. Exceptional cold weather in Sweden and Denmark and issues in industrial building construction explain about half of the decline in services. Infrastructure services were hit harder than business services in terms of EBITA.
Q: Are the projects affected by cold weather in the service segment shifted to Q2, or have they been lost? A: The costs increased due to frozen grounds, but volumes remained stable. The construction of industrial buildings faced high startup costs, but conditions are improving as we move into Q2.
Q: Can you quantify the net effect of the stronger SEK on trade during the quarter, and how will it affect the rest of 2026? A: The stronger SEK had a significant effect in Q1, but we expect the negative impact to lessen in Q2 and potentially become positive if the SEK remains stable. The translation effect was roughly minus 2% on sales and EBITA, with transaction effects closer to minus 5%.
Q: How long is the delay in the effect of the stronger SEK on inventory purchases within trade? A: The effect will be seen from Q2 onwards, as hedges made last year have less impact now. If the SEK remains stable, we expect a positive margin impact from Q2 onwards.
Q: Do you expect to accelerate the M&A pace in 2026 compared to 2025? A: Yes, we anticipate an increase in M&A activity during Q2 and beyond, expecting higher M&A than last year.
Q: Was there an improvement in demand and earnings throughout the quarter, particularly in March? A: Yes, all three business areas saw better performance in March compared to January and February, with improvements in both sales and earnings.
Q: Have you seen any impact from geopolitical uncertainty in April? A: So far, we haven't seen significant cost increases on a large scale, though there are some effects from higher freight and energy prices. The uncertainty is more about potential future impacts.
Q: Can you comment on the valuation multiples for recent acquisitions? A: The valuation multiples for recent acquisitions are in line with last year, below 7%, and we continue to focus on margin increases.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
