Q1 2026 Garo AB Earnings Call Transcript
Key Points
- GARO AB (LTS:0REY) secured a five-year procurement contract worth SEK50 million with the Swedish Transport Administration, indicating strong future revenue potential.
- The company successfully implemented a new ERP system, which is expected to enhance operational efficiency and profitability over time.
- Consolidating production in Sweden is projected to generate annual savings of SEK25 million, improving cost efficiency.
- The strategic decision to close the sales office in Germany will result in annual savings of SEK5 million, while maintaining customer relationships through a new export function.
- GARO AB (LTS:0REY) is focusing on strengthening its sales organization and has conducted extensive sales training to enhance team skills and exploit market opportunities.
- Net sales decreased by 7% compared to the same quarter last year, attributed to the current business economy and an unusually cold spring.
- The GARO E-mobility business area experienced a significant decline in sales, with a 26% drop compared to the previous year.
- The adjusted EBIT for the quarter was negative SEK13 million, reflecting higher sales and development costs.
- The gross margin decreased due to product mix, targeted campaigns, and currency effects, impacting profitability.
- Cash flow from operating activities was negative SEK7.5 million, indicating challenges in managing working capital effectively.
Welcome, everyone, to the presentation of GARO's report for Q1 2026. My name is Joe Ree, and I'm the acting CEO of GARO since February. I'd be surprised if any of you know me, so please allow me a short introduction. As you may guess, I'm not Swedish, I'm Irish, and I apologize for not being able to speak Swedish, but I did try quite a while ago when I lived here for a year.
I have worked in GARO now since 1989, became Financial Controller of GARO Ireland in that year. And then in 1994, I lived in Varnamo in Sweden with my wife for a year working as the Group Controller. That went very successfully, but sadly failing very badly learning Swedish.
Moving back to Ireland. I was appointed CEO of GARO Ireland in 2015 and Chief Operating Officer of GARO Group in May last year. It's an honor and a pleasure to be here today and to have the opportunity to lead GARO as acting Group CEO until Tobias. Our new permanent CEO starts on June 15. With me today is Helena Claesson, our CFO, who will walk you through
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