Q2 2026 Storskogen Group AB (publ) Earnings Call Transcript
Key Points
- 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.
- 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.
- 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.
- 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.
- 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.
- 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%.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
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Welcome, and thank you for joining us for the presentation of Sturzkogen's interim report for the second quarter of 2026. I'm Christian Ransson, CEO, and with me today is Lena Glader, our CFO. When we spoke after first quarter, my message was that this year would bring an increased focus on growth in its broadest sense, organic and acquired. The second quarter has moved us in that direction, which I'm pleased with. We delivered positive organic development, completed further acquisitions and continued to build on a stable operational platform. Growth was also the theme when we gathered more than 100 of our group's business unit CEOs in Stockholm at the end of May for our global CEO days. Over two days, we discussed how growth is created in the businesses and how we as an owner support our CEOs in succeeding.
Including a half-day on AI where the CEOs build practical solutions. The engagements were strong throughout, which says something about the ambition that exists across the group. I will
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