Q2 2026 Garo AB Earnings Call Transcript
Key Points
- GARO AB (LTS:0REY) returned to top-line growth with net sales increasing by 2% year-over-year, driven by a 5% growth in the core Electrification segment.
- International expansion is gaining traction, with strong growth in Ireland and the UK, where sales outside Sweden increased by 15%.
- The company successfully launched a new cable cabinet for low-voltage distribution, receiving encouraging market response and an initial order.
- Strategic initiatives are progressing, including the completion of the Poland-to-Sweden production relocation's first phase and the integration of subsidiaries, which are expected to improve efficiency and margins.
- The ERP system implementation has transitioned to a maintenance phase, reducing related costs from SEK6-7 million per year to a significantly lower level going forward.
- GARO AB (LTS:0REY) won a major urban development project in Gothenburg, showcasing its ability to deliver customized, high-quality solutions.
- GARO E-mobility continues to underperform, with sales declining 7% and an adjusted operating loss of SEK27 million, negatively impacting group earnings.
- Gross margin decreased compared to the prior year due to product mix, targeted campaigns, and currency effects in both business areas.
- The company incurred one-off costs of SEK6.4 million for departing personnel and inventory impairments, along with additional costs related to the business system implementation.
- Sales in Sweden remained challenging, with a decline in the Electrification segment partly due to the new business system implementation and weaker performance in the E-mobility wholesaler business.
- The E-mobility market opportunity is not being captured to the expected extent, prompting an intensive review of the business's strategic direction.
- The company's net debt remains high at SEK258 million, and there is a significant deposit of SEK42 million with a supplier for materials not yet called off.
Good morning, everyone, and welcome to this webcast, where we will review the performance of Garo Group and with a particular focus on the second quarter of 2026.
My name is Tobias Byfeldt, and I'm the new CEO of Garo Group. I assumed this role on June 15. And with that said, I would like to extend my gratitude to Joe Ree, who served as an interim CEO during the first half of the year. Thank you, Joe.
And joining me today is Helena Claesson, our CFO, who will take you through our financial performance in more detail later in this presentation.
Next slide, please. Let me first take a moment to share a little bit more about my background and what I bring to Garo.
Throughout my career, I have been fortunate to work with the Swedish technology and innovation companies that have successfully expanded on a global scale. At Kollmorgen Automation, I have leadership roles spanning sales management, general management and full P&L responsibility.
During this time, I gained valuable experience in driving
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