Sweco AB (STU:7W71) Q1 2026 Earnings Call Highlights: Strong Organic Growth Amidst Market Challenges

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• Net Sales:SEK8.3 billion, with an organic growth rate of 3%.

• EBITA:SEK869 million, corresponding to a margin of 10.4%.

• EBITA Growth:Increased by 5% adjusted for calendar effects.

• Net Debt-to-EBITDA Ratio:0.5 times at the end of March.

• Cash Flow:Negatively impacted by a seasonal increase in working capital, resulting in a net debt position of SEK1.9 billion.

• Acquisitions:Three acquisitions in Q1, including Finnish architecture firm Nakyma, Belgian firm CONIX RDBM Architects, and a-tract architecture.

• Order Backlog:Increased during the quarter.

• Organic Growth by Business Area:Germany and Central Europe had the strongest growth at 9%.

• EBITA Margin by Region:Sweden and Norway reported higher margins, while Finland was negatively impacted by project adjustments and restructuring costs.

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Release Date: April 28, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• Sweco AB ( STU:7W71 ) reported a stable Q1 with a 3% increase in net sales to SEK8.3 billion, driven by positive organic growth and acquisition activity.

• The company achieved an EBITA margin of 10.4%, with EBITA increasing by 5% adjusted for calendar effects.

• Sweco AB ( STU:7W71 ) maintained a strong order backlog and improved billing ratios, reflecting internal efficiency.

• The Swedish business area delivered solid organic growth and EBITA improvement, supported by synergies from recent acquisitions.

• Sweco AB ( STU:7W71 ) continued its active M&A strategy with three acquisitions in Q1, enhancing its market position in Europe.

Negative Points

• Restructuring and integration costs, particularly in Finland, negatively impacted results.

• The Finnish market remains challenging, with flat growth and negative project adjustments affecting performance.

• Denmark reported a negative growth rate of 2% due to weaker demand in the industry and energy market segments.

• The EBITA margin decreased from 11.2% last year to 10.4% this year, partly due to higher personnel expenses.

• The residential and commercial buildings segment remained weak, with no significant improvement in the market outlook.

Q & A Highlights

Q: How far along is Sweco in the integration of recent acquisitions like Projektengagemang and Fimpec? Are the major costs behind you? A: According to Asa Bergman, CEO, Projektengagemang is structurally integrated into Sweco's organization, but full synergy realization is ongoing. For Fimpec, integration costs are still being incurred, particularly in Finland, with gradual improvements expected throughout 2026.