First quarter of 2026
• Net sales increased by 1.7 percent to SEK 2,222 million (2,184). Organic growth was 2.2 percent, and order intake was slightly higher than net sales.
• Adjusted operating profit (EBITA) amounted to SEK 340 million (278), corresponding to an operating margin of 15.3 percent (12.7).
• Operating profit (EBITA) totalled SEK 340 million (286), with an operating margin of 15.3 percent (13.1).
• Earnings per share were SEK 1.09 (0.96).
• Cash flow from operating activities amounted to SEK 201 million (164), corresponding to a cash conversion of 58 percent (56).
• Net debt/EBITDA, adjusted, was 2.4 (2.5).

CEO’s overview
Bufab starts the year with a strong first quarter, delivering improved gross and operating margins. Despite increased global uncertainty, we continue to deliver improved results, which we regard as a sign of strength.

We continue to execute on our strategy with a strong focus on value creation for customers. This is achieved, among other things, by strengthening our offering in customised full-service solutions, sustainability and logistics solutions. We have also worked actively to implement new ways of working with value‑based pricing across the organisation, which over the past couple of quarters has generated clear results.

Continued mixed demand
Net sales amounted to MSEK 2,222, corresponding to an organic growth of 2.2 percent compared with the same quarter last year, with positive development in three of the five regions. The organic growth was mainly driven by volume increases. Underlying demand, however, remains cautious. During the quarter, we noted good demand in sectors such as energy, agriculture and food, digital infrastructure and defence, while demand within construction, furniture and interior design, and the automotive industry remained weak.

Strong performance during the quarter
I am very satisfied with the performance during the quarter. Both the gross margin and the operating margin increased compared with the comparative quarter and reached high levels. The gross margin increased to 32.9 percent as a result of focused work to improve our customer and product mix, purchasing savings, price adjustments, as well as the strengthened Swedish krona. Over the past eleven quarters, we have seen strong momentum in our gross margin, a development that we expect to continue during the year.

The share of operating expenses, adjusted for the revaluation of contingent purchase considerations, was somewhat lower compared with the comparative quarter. We continue to maintain a strong focus on cost control throughout the organisation, while at the same time investing in growth. The operating margin came in at a strong 15.3 percent in the quarter. Notably, the vast majority of the Group’s operating companies improved their results compared with the previous year.
 
Outlook and priorities
While we note a strong start to the year, developments in Iran and the Middle East have increased uncertainty in the market. Bufab is not directly affected by disruptions from the war or the unrest in the Strait of Hormuz, but we see increased freight costs and continued cautious customers as risk factors, as similar developments historically have had a dampening effect on demand.

While the deteriorating external environment creates uncertainty, it also creates opportunities for a strong player such as Bufab to gain market share, as customers increase their focus on reducing costs and securing their supply chains.

The uncertain market situation does not affect our priorities going forward. We are well on track to reach our margin target and will continue our work to deliver on our strategy, focusing on what we can control ourselves: gaining market share, gradually improving our gross margin and cost base, and delivering strong cash flow. This leaves us well positioned for profitable growth when demand returns.

Internally, we also continue to work on strengthening performance orientation through increased accountability via decentralisation, supported by clear three‑year plans for all companies. We are also working intensively to manage the EU’s new carbon border adjustment mechanism (CBAM), which affects our European companies. Despite the uncertainty in the world, we remain optimistic about the future and the opportunities to continue creating value for our customers and shareholders.

I would like to thank all of the Group’s “Solutionists” for their strong commitment and hard work during the quarter. Together, we have delivered a good start to the year!

Erik Lundén
President and CEO

Conference call
A conference call will be held on 23 April 2026 at 9:00 a.m. CEST. Erik Lundén, President and CEO, and Marcus Söderberg, CFO, will present the results. Analysts and investors who wish to ask questions are asked to connect to the presentation via the following Teams link: Click here to join the meeting and use the “Raise Your Hand” function during the Q&A session.

Bufab AB (publ)
Box 2266
SE-331 02, Värnamo, Sweden
Corp. Reg. No. 556685-6240
Phone: +46 370 69 69 00
www.bufabgroup.com