This article first appeared on GuruFocus .
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Net Sales:SEK 8.86 billion, up 5% year-over-year, driven by organic growth.
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Adjusted EBITDA:SEK 1.13 billion, up 2% year-over-year.
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Adjusted EBIT:SEK 864 million, up 2% year-over-year.
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Adjusted EBITDA Margin:9.7%, compared with 10% in Q2 2025; essentially unchanged year-over-year when adjusted for a one-off effect.
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Adjusted Operating Profit (EBIT):SEK 693 million, up 3% year-over-year.
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Net Profit After Tax:SEK 413 million, up 18% year-over-year.
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Adjusted Earnings Per Share:SEK 0.23, up 23% year-over-year.
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Cash Flow from Operating Activities:SEK 465 million, down 12% year-over-year due to timing effects.
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Cash Conversion (Rolling 12-Month):74%, compared with 80% a year ago.
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Leverage Ratio:2.4x interest-bearing net debt over adjusted EBITDA, unchanged year-over-year.
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Interest-Bearing Net Debt:Just under SEK 9.9 billion.
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Organic Sales Growth:5% in the quarter; 4% year-to-date.
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Trade Net Sales:SEK 2.3 billion, 1% lower than a year ago, with organic sales growth of 2% year-to-date.
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Industry Net Sales:Close to SEK 4 billion, up 6% year-over-year, with organic sales growth of 5% at the half-year mark.
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Industry Organic EBITDA Growth:7% year-to-date.
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Acquisitions Completed:Four in the quarter with combined annual sales of SEK 214 million.
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Release Date: August 11, 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 ( STU:0VK ) delivered positive organic sales growth of 5% in Q2 2026, with year-to-date organic growth at 4%, marking a successful shift toward its growth strategy.
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The company completed four acquisitions in Q2 with combined annual sales of SEK 214 million, including three platform acquisitions in the UK, Singapore, and Norway, all margin-accretive and at good valuations.
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Industry business area showed strong performance with net sales up 6% and organic EBITDA growth of 7% year-to-date, driven by broad-based strength and successful growth investments.
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Net financial items improved by 33% year-over-year, reflecting the payoff from refinancing and debt reduction, leading to a 20% increase in profit before tax and 18% rise in net profit.
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The company's financial flexibility is increasing, with debt reduction expected to be near zero in 2026 and minority buyout commitments decreasing, freeing up more capital for future acquisitions.
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Cash flow generation remains strong, with rolling 12-month operating cash flow at SEK 3 billion and cash conversion above the 70% target at 74%.
Negative Points
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Adjusted EBITDA margin declined to 9.7% from 10% in Q2 2025, and even excluding one-off effects, the margin was flat year-over-year, falling short of the 10% target.
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Cash flow from operating activities decreased 12% year-over-year to SEK 465 million, primarily due to higher working capital tied up in receivables from a strong June sales finish.
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Services business area continues to face margin pressure, with subdued demand in construction-exposed units and a mix effect from structurally lower-margin businesses, offsetting improvements.
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Trade business area saw net sales decline 1% year-over-year, with weakness in the health and beauty segment due to weaker demand from Scandinavian customers.
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The rolling 12-month adjusted EBITDA margin trend is slightly negative, and the company acknowledges it is not satisfied with the current margin level, requiring continued operational improvements.
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Leverage ratio increased marginally to 2.4x from 2.3x at the end of Q1, and cash conversion trended down to 74% from 80% a year ago, reflecting the impact of growth investments.
Q & A Highlights
Q: In the Trade segment, is the softness entirely attributed to the health and beauty segment, and what is the visibility for H2? A: CEO Christer Hansson confirmed the softness is entirely within the health and beauty sector, where customers are transitioning from inventory reduction back to growth. He noted that most other companies in the Trade segment are performing well and that momentum improved towards the end of the quarter.
Q: How much of the margin compression in Services is due to mix effects versus higher material costs and price pressure? A: CEO Christer Hansson stated that the margin pressure is a combination of both factors, estimating the split at roughly 50/50.
Q: What is driving the strong performance in the Industry segment, specifically in industrial technology and automation? A: CEO Christer Hansson described the strength as broad-based, with a particularly strong June. CFO Lena Glader added that larger companies in industrial technology, which struggled a year ago, are now performing well and have good momentum, although they carry slightly lower margins than the automation companies.
Q: Regarding M&A, are the high margins (around 20%) and low multiples (below 5x) seen year-to-date the expected norm going forward? A: CEO Christer Hansson reiterated the goal of acquiring businesses at multiples of 7x or below. While not every acquisition will have a margin above 20%, the company will continue to ensure all acquisitions are margin accretive. CFO Lena Glader clarified that the EV multiple should be calculated based on the 100% enterprise value disclosed in Note 4 of the report, not just the cash outlay.
Q: What specific levers are needed to reach the 10% EBITDA margin target, and is a Swedish economic recovery necessary? A: CEO Christer Hansson stated that the path to the 10% target involves continued company-by-company operational work on pricing and cost control. While an improving economic environment, particularly in Sweden, would help, M&A activity will also contribute. He affirmed that 10% remains a long-term, achievable target.
Q: Does the higher CapEx in the quarter relate to more forward-leaning growth investments or is it a timing issue? A: CEO Christer Hansson confirmed it is a mix of timing and a deliberate shift towards growth investments, citing examples like J&D Pierce in Scotland and L&S. CFO Lena Glader added that CapEx is part of the capital allocation process, with the current 2.3% CapEx-to-sales ratio slightly above the normalized 1.5-2% target, reflecting the momentum seen in the business.
Q: Where do you see the most potential for M&A growth geographically in the coming years? A: CEO Christer Hansson reiterated the strategy to increase exposure outside of Sweden, focusing on the UK, the DACH region (Germany, Austria, Switzerland), and selectively Asia. He noted a strong pipeline of opportunities in the UK and DACH.
Q: Should we expect the same level of M&A activity in H2 2026 as in H1? A: CEO Christer Hansson indicated that the pace of acquisitions will gradually increase. He noted that while Q3 will see significant capital allocated to buying out minorities, the capacity for new acquisitions will increase quarter by quarter, with more capital allocated to M&A this year than last and even more next year.
Q: Can you explain the discrepancy between the strong performance in international operations and the weaker Swedish operations? A: CEO Christer Hansson acknowledged that the pickup in growth has been driven by non-Nordic businesses. He expressed hope that the Swedish economy will improve over the coming two to six quarters, which would positively impact the group's performance.
Q: How should we interpret the higher working capital tied up in the quarter and the lower cash conversion? A: CFO Lena Glader explained that the lower cash flow is a timing effect due to a very strong finish to the quarter, particularly in Industry, which led to higher outstanding receivables at the end of June. She expects this to reverse during H2, in line with typical seasonality, and confirmed that inventory buildup was very low.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
