This article first appeared on GuruFocus .
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Net Sales:SEK8.6 billion, a 9% increase year-over-year.
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Organic Growth:3% adjusted for calendar effects.
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EBITA:SEK864 million, a 7% increase adjusted for calendar effects.
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EBITA Margin:10.1%, up from 9.6% last year.
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Net Debt-to-EBITDA Ratio:0.8 times, unchanged from last year.
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Cash Flow from Operating Activities:SEK911 million, up from SEK680 million last year.
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Restructuring and Integration Costs:SEK30 million, SEK18 million higher than last year.
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Billing Ratio:Increased to 75.9%.
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Order Backlog and Orders Received:Both increased.
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Acquisitions:Two new acquisitions announced during the quarter.
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Release Date: July 17, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Sweco AB ( LTS:0H0G ) reported a solid second quarter with net sales increasing by 9% to SEK8.6 billion.
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The company achieved an EBITA margin of 10.1%, up from 9.6% last year, indicating improved profitability.
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Sweco AB ( LTS:0H0G ) continued its acquisition strategy, announcing two new acquisitions during the quarter, which are expected to strengthen its market position.
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The company maintained a strong focus on efficiency, reflected in an increased billing ratio of 75.9%.
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Sweco AB ( LTS:0H0G ) secured several significant client projects, contributing to a stronger order book and demonstrating continued demand for its expertise.
Negative Points
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The UK reported a negative growth rate of 3% due to fewer subconsultants and FTEs, indicating challenges in that market.
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Denmark was impacted by lower investment in the pharmaceutical industry, although it managed to compensate with growth in other segments.
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The EBITA margin in Germany and Central Europe was lower than last year, partly due to higher personnel costs.
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Restructuring and integration costs in Sweden and Finland negatively impacted the quarter's results by SEK30 million.
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The residential and commercial buildings segments, as well as parts of the industry segment, remained weak, reflecting ongoing market challenges.
Q & A Highlights
Q: How should we think about the utilization rate going forward? Is there more headroom for growth? A: Asa Bergman, CEO: We have focused on improving efficiency for a long time and are pleased with the progress. It's difficult to say where the limits are, but we will continue to work on efficiency as it remains important.
Q: Can you continue to increase average fees in a mixed market? Is the momentum sustainable? A: Asa Bergman, CEO: We have historically managed to meet salary and cost inflation with fee increases. Our focus is on maintaining this momentum by setting appropriate market prices and executing projects efficiently.
Q: How are the integrations of recent acquisitions progressing? A: Jan Allde, CFO: The integrations are progressing well, and we are seeing positive contributions from acquired companies in our P&L. Overall, the margins of acquired companies are close to the group average.
Q: What is the visibility of your order backlog, and can you comment on the margins? A: Jan Allde, CFO: The order book is developing well, and we remain price disciplined, which is reflected in our P&L. We continue to see price expansion.
Q: Can you provide guidance on restructuring and integration charges for the upcoming quarters? A: Jan Allde, CFO: We took SEK30 million in restructuring and integration costs in Q2, mainly related to Sweden. Going forward, there will be some integration costs for the remainder of 2026, but we don't provide forecasts for restructuring as it depends on market conditions.
Q: Is there an improvement in the Finnish market, and how does it affect Sweco? A: Asa Bergman, CEO: We have seen positive order intake in Finland, but it's too early to say if this indicates market expansion. We focus on growing the order backlog and improving efficiency.
Q: How important is the data center segment for Sweco, and what are the trends? A: Asa Bergman, CEO: Data centers are a growing area for us, and we work with a broad range of clients. Our UK business leads client relationships and projects, focusing on early planning, permitting, and predesign.
Q: What are the strategies to improve margins in Germany and the UK? A: Asa Bergman, CEO: In Germany, we focus on operational excellence and stabilizing results over the yearly cycle. In the UK, we are repositioning ourselves in the market and strengthening our portfolio, which is showing positive results.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
