Good morning all, and welcome to this presentation of our results for the first quarter here at Fasadgruppen. In the room, we have our CEO, Martin Jacobsson, and our CFO, Casper Tamm, and myself, Magnus Blomberg. With that being said, I hand over the word to Martin. Please go ahead.
Thank you, Magnus, and good morning also from me. Thank you all for joining this 2026 Q1 results call. Let me start with the headline. Q1 2026 was a cold quarter. In the Nordics, we saw some of the coldest weather in, I would say, several decades, which of course materially restricted our production. In the U.K., we saw continued regulatory delays as we have spoken about several times now from the Building Safety Regulator, which we denominate of BSR. The Adjusted EBITA that came in at roughly SEK 5 million against SEK 77 million a year ago. That said, the underlying business is in a stronger position than these headlines numbers suggest, I would like to say. Our organic order backlog grew by almost 15%, mainly driven by the U.K. and Norway.
We've also successfully completed our rights issue, and we have gotten roughly SEK 488 million of net proceeds. It was oversubscribed as well to roughly 142%. We take that as a very strong vote of confidence from our shareholders. A tough quarter on the P&L. However, on the leading indicators, such as the backlog and the balance sheet, we are going the right way. Taking a look on the rolling 12 months here for Q1 numbers, we see an increase in both sales and the Adjusted EBIT levels as well on the margin. Backlog is also significantly higher than the same period last year, as well as cash flow and cash conversion. Even though Q1 was cold, we see improvements in the last 12 months.
Taking a look on the net sales here in the first quarter, we saw a total sales of SEK 994 million, which was a decrease by roughly 15% compared to the same period last year, and on an organic growth level that came in at roughly 12% below organically. As I mentioned, it's mainly the cold that has struck hard in the Nordics and has, of course, affected our productivity on these kind of projects that we do mainly on the outside of a building. Regarding BSR, we will talk about Clear Line separately in the coming slide. I would also like to highlight here that in a market where new production is lower, which mainly has been in the last couple of years, we have been more tilted to renovation.
I would like to say that renovation is more seasonal in that sense that most of the renovation projects are done during the warmer months. With the lower new production levels, we become more seasonally affected. Taking a look on different segments, we see here the Total Solutions decreased by roughly 10%, down to SEK 519 million compared to SEK 574 last year. On the Specialist Solutions, we saw the sales go down by roughly 15% to SEK 361 compared to SEK 425 last year. Clear Line, our U.K. business decreased by roughly 34% in the Q1, down to GBP 150 million compared to GBP 174 last year. Here, the BSR effects looms. Next slide, please. As we mentioned, the Adjusted EBITDA was significantly lower compared to last year. Taking a look on the various segments, we can see that we are down compared to last year in all segments.
Of course, both Total Solutions and Specialist Solutions are negative in the quarter. To remind people about the last year, the conditions temperature-wise and also on the weather side was much more beneficial for us compared to this year. Looking on the Clear Line, we also saw that the result was down there. The margin came in at roughly 30% compared to 35% a year ago. This is, of course, as I've mentioned now several times, mainly connected to delays that we will talk about. We saw some adjustments of roughly SEK 10 million in the quarter, mainly comprising earn-out revisions. On the order backlog side, we came in at SEK 4.5 billion here at the end of the quarter. We saw a total 12.4% growth compared to last year.
Organically, the increase was roughly 15%, as I mentioned, where the majority of this, of course, comes from Clear Line, which you see had almost 80% higher order backlog compared to last year. It's partially good demand, but also, of course, driven by the delays. If you just look on the Total Solutions and Specialist Solutions, it's no major changes in those two order backlogs. I want to highlight here that our customers are signing our contracts. They trust us to deliver. The work is there, and the question for 2026 is execution, not demand, I would like to say. Next slide, please. On cash flow, we see business ramping up following the seasonal pattern, and the working capital improvements that we do continues.
If you just take a look on the 12-month basis, as I mentioned, prior, compared to one year ago, it's roughly SEK 200 million increase compared to last year. Next slide, please. On the Clear Line situation, I'd like to spend a moment here because I know this is on a lot of your minds regarding BSR Gateway 2, which is for you to understand regarding these kind of gateways, you know what this means is there are three gateways. It's the first, Gateway 1 is regarding to planning. Gateway 2 is when the project actually starts, and then probably three years in the finalization. It's been statutory that in these renovation projects, the time for these projects should take at maximum eight weeks. Now on average, they are on a 36 weeks to get the approval.
As you remember, in December, we sent out a press release stating we've gotten some approvals. I would say most of them will start in Q2 this year. Regarding BSR, they also sent out a statement here in April with an action plan where they target to decrease this average processing time from 36 weeks to 12 weeks by December 2026. That is, of course, very good news for us. They have also then mentioned concrete measures, the BSR. They have this dedicated multidisciplinary team with account managers and are doing a recruitment drive. They're also doing something, what they call a mechanism approval with requirements that allows projects to start safely, but still remaining to having some technical questions to be resolved. It's very important for you to understand that no projects have been canceled and the underlying demand is strong.
I would like to highlight here that Clear Line is very well-positioned for when these processing times normalize, and we have more visibility forward, I would like to say, than we had, let's say, six months ago. Next slide, please. Some concluding remarks then before we open up for questions. First then about Q1, it was a cold quarter and BSR delays continued. Secondly, underlying business is intact and the order backlog is growing. That means that the fundamentals in our operations work. Thirdly, I would like to highlight here that our balance sheet is stronger than prior to the rights issue. This gives us room to act long-term, to say yes to the right projects and no to the wrong ones, and to be ready when the right M&A opportunities comes along. That's how we've built Fasadgruppen since 2016.
This is our 10-year anniversary. How we intend to continue going forward. Lastly, now we're in the middle of the peak season, I would say, here in production, and we are doing that with a more agile organization. It was implemented last year. I'm pleased with the performance of that so far. We have a platform model that has proven itself across borders here. With that said, I'd like to give a special thanks to our employees, who delivered quality and reliability to our customers during these difficult conditions. I'd also like to thank our shareholders for the broad support behind the rights issue. With that, I think we open up for questions.
The next question comes from Max Bacco from SEB. Please go ahead.
Thank you, and good morning, Martin and Casper. A few questions from my side. Perhaps starting with the order backlog in the Nordics. It was down 5% year-over-year. Of course, I guess you have some currency headwinds in that number and also the divestment, but still pretty much unchanged organically. Why is that, basically?
Good morning, Max. It varies a lot in the different countries. Why is that? It's also a timing effect to some extent. Of course, if you take as an example Norway, they stand out, which have had, during 2025, been working on a lot of big projects, and they have come into our new order backlog here in the quarter. Their order backlog for Norway is up roughly 50% compared to last year in Q1. That's a significant change. They had some quite low levels prior to that. If you take, let's say, Sweden as an example, which are down maybe 10%-15% compared to the same period last year. Of course, there's also a timing effect in when you sign the previous large orders. That's, I would say, more of a timing effect than that demand has weakened.
I would say that doesn't really reflect the demand situation, especially in Sweden, which I think is absolutely on the right path. If you continue with Denmark, I've mentioned it historically, I think, to you, Max, that we had one of our largest orders ever in the order backlog that we have been producing on that the whole of 2025. That's a distortion figure. Should you exclude that, I would say that Denmark is more or less flat, but now it's in the same area, same as the Swedish order backlog. On the Finnish side, there we have a significant increase by more than 20% in the order backlog side. It paints a different picture, if you put it like that.
I wouldn't say that if you just take the whole Nordics and say that it's flat, that it would be some kind of indicator that it's low demand out there. I tried to say now, that it varies across the countries and, in general, we are quite pleased with the development.
Okay. Thanks for that flavor. Then turning to Clear Line. As highlighted, very strong growth in order backlog, up 80% year-over-year, now standing at SEK 1.5 billion. Could you remind us, an update us on how much of that is approved by BSR and how much is expected to be executed on during the remainder of 2026? I think the last time, in connection with Q4 2025, so it's a couple of months ago, I think you said that roughly SEK 750 million in order backlog for Clear Line were to be executed on during 2026. Is it still the same number or has anything changed there?
Yeah, it's roughly the same number. Let's put it like this, Max. Even if we would get all the approvals at the same time, we wouldn't have the capacity to execute that at the same time. We want it to be spread out. We are looking into orders for 2028 now and 2029 in Clear Line. It's also connected to, let's say, our capacity in that sense.
Okay.
Yeah. A reminder here that Clear Line sales was roughly GBP 47 million in 2025. If you compare to the number just stated here on the roughly SEK 750 million, there should be possibilities fo r growth for Clear Line in 2026.
On a full year basis or for the remaining quarters?
Yeah, it's both, but for 2026 compared to 2025 was what I was aiming at.
Okay. Understood. If you could potentially, Q1 was of course, a ver y weak quarter, but at the same time, it should be pretty much isolated to Q1, given weather and to some extent then the regulatory delays for up-screening here in Q2. Could you comment anything here on Q2, how it has started? We have passed April and pretty soon we are past May as well. Have you seen the uptick that you expected in terms of activity?
Well, we don't give any prognosis on that level, Max, as you know. What I can say is of course, that the weather conditions have been better as expected in that sense. What happens when you have a very cold start to the year is that often when the weather improves in, let's say, February or so, you can start up full production in March. Now that there's been a delay, there's also some lag to the start-up in that sense. We are doing everything we can to speed up production in that sense. When these orders are postponed during the colder period, of course, all of the other projects that were supposed to start in, let's say, April or so, they still need to start.
With that said, it's a bottleneck in that sense where you are connected to, let's say, the number of craftsmen you have and the number of subcontractors that you can employ in that sense. With that said, of course, we are eager to start and doing everything we can to catch up as good as possible during the rest of the year here. As a reminder, we have not lost any projects or something like that. It's just that it's been a postponement due to weather conditions.
Okay. Understood. Yeah, that was all from me at the moment, at least. Thank you.
Thank you, Max.
The next question comes from Lucas Mattsson from Inderes. Please go ahead.
Hello, guys, and good morning. I have a couple of questions as well. I was wondering, are you seeing any effects from the conflict in the Middle East that are currently impacting your business, both in terms of demand, but also on the cost side due to higher energy prices?
Good morning, Lucas. We start with the Iran Hormuz situation, I wouldn't say that it's had any significant impact on demand in that sense. Of course, there's always some hesitancy, the r enovation projects, the buildings are still in as poor conditions. It doesn't matter what kind of conflicts that is around the world. I wouldn't say that it's been a significant impact there. On the other side, if you take a look on the oil-based materials that we use, such as flat roof materials, we've seen significant upticks in the prices there. However, as a reminder, it's a pass-through effects in that sense to the customers, but still it's a significant impact there. We're talking about maybe more than 15%-20% increase on these kind of materials.
Often the suppliers can be quite quick to raise prices, but they're not as quick to lower them if it goes the other way. That's the most significant impact that we've seen on that situation, I would say.
Okay. Yeah, that's very clear. Thank you. I was also wondering, how do you currently view the competitive landscape in the market? Are you seeing any easing when it comes to pricing pressure?
Yeah, it varies on the different regions, I would say. Of course, it would ease even more if new production would start even more. I think there has been a lot of bankruptcies around th e sector, construction industry as general, and that have had an impact on us or for us. If you take a look on Norway, which I would say is the country that stands out mostly negatively for us at the moment, they are still seeing price pressure in that sense, in a tough market. Going to Denmark, I wouldn't say that there's any significant change there quite as say as prior. Depends on various segments or type of services. I would say on the balcony side in Denmark, it's a bit tougher situation.
In Finland, as you know, that our company there is more European based, so they have a very broad spectrum of competitors all around Europe. I wouldn't say that has had any significant change. In the U.K., you could say on the contrary in the U.K. that there's been since actually bankruptcies connected to the BSR situation. Companies are really struggling with BSR in the U.K., not only us. It has actually opened up some doors for us there to gain some more projects. As you know, the order backlog is quite full at Clear Line. Yeah, I hope that gives some flavor for you.
Yeah, very clear. Thank you very much. That was all from my side.
Thank you, Lucas.
The next question comes from Elvin Rolder from DNB Carnegie. Please go ahead.
Yes, good morning, guys. This is Elvin here. A lot of questions have already been asked, but I can maybe continue a bit on the U.K. and Clear Line. If we look at the order backlog, it's a 15% up organically year-over-year, which seems to be, of course, driven by Clear Line. I guess a lot of that is also coming from the fact that you cannot deliver on projects as you wish considering the BSR delays.
Yeah.
Is it possible to split the kind of order backlog increase in how much is actually coming from accelerating order intake and actually underlying improvements, and how much is the fact that the actual kind of conversion from backlog is much lower than what is to be considered normal?
Good morning, Elvin. I think I can answer the question in this way. In a normal situation, what kind of activity level could Clear Line handle? I think that's more like what you're asking in that sense. Of course, now I'm thinking mostly in million pounds. If you compare them to the GBP 47 million they had in sales in 2025 and compare it to, let's say, what we talked about in the vicinity of, we mentioned GBP 750 million on that kind of activity level. That's roughly GBP 60 million or so. That kind of range, I think Clear Line can handle up to closer to GBP 100 million as well. We need to have more, let's say, better planning around when we get the BSR projects finalized. There's ample of capacity still in Clear Line, but of course, it coincides with the, let's say, approval rates.
Even though there's potential for growth in Clear Line, I think with the current organization, if you have the right projects in that sense, I think there's ample growth opportunities as well on top of that. Yeah, I think that I can do. Does that give some flavor for you, Elvin?
Yeah. It does. Thank you. Perhaps continuing a bit on the backlog, if we will pivot towards the Nordics, I guess. Max highlighted it was down here, and there is some effects, I guess, in Q1 as well, but it was also down in Q4, if I remember correctly. I think Q3 was somewhere around flattish for the Nordic backlog. I respect that there is some effects from the Danish business, but how should we view the volume-based part for the Nordics on a run-rate basis in the backlog, given that the past three quarters with this one included, does not really point to a very optimistic scenario for the Nordic backlog?
Is there any price year-over-year effects as well in that we should be aware of this year? That kind of distorts the picture in either direction, or can you give some more flavor on that so we understand the dynamics there?
Yeah. I there the Nordic region as a whole, I think it's important to understand that when you compare to the historic levels, you always take a look on the order backlog, but the order backlog doesn't give the full picture. I would say, especially in the Nordics compared to, let's say, Clear Line, because Clear Line have a much larger projects and it's more planning around it. In the Nordics, there's much more smaller projects, and you can't really see them in the order backlog, because they're executed so quickly. It could be, "Could you start in two weeks' time?" If you get that kind of order in May, and it's executed directly, you don't really see it. In that regard, that also affects the situation for Nordics, and of course, it makes it hard for you to model that.
I think when I went through all of the different regions here on the order backlog side, and if you take the one that stood out was Norway, which was roughly, as I mentioned, up 50%. Now there's someone on the line, I think, Elvin. You could mute maybe, then I can talk to you.
Oh, sorry.
In the Norwegian market, as an example, even if the order backlog is up roughly 50%, a lot of the execution on that is connected to various reasons on when to start. Often, when you do our kind of larger renovations, and it's in a, say, residential building, often you have scaffold on the façade and it gets, some say, quite inhospitable in that sense, where you can't see out. If you have a balcony or during the summertime, you can see out through your windows. Would like that to be as little as possible during summertime when the residents are, let's say, there. They don't like to be in that kind of residential area during the time of the summertime. With th at said, if you just take Norway as an example, a lot of the projects are prone to start after the summer.
That's when you paint a bigger picture around, let's say, first half year is maybe somewhat, let's say, on a lower activity level compared to probably the second half of the year.
Okay. Very clear. Thank you. I think that was all from me, actually. I'll get back in the queue.
Thanks, Elvin.
There are no more questions at this time. I hand the conference back to the speakers for any written questions and closing comments.
Thank you. Well, I can only summarize what I mentioned earlier. It was a cold Q1. Oh, we have some written questions. Okay. Sorry. Yes.
Yeah. We have a written question here that are being asked that we haven't completed any acquisitions over the past year, which is unusual for Fasadgruppen. Is this a strategic shift or is it mainly driven by the balance sheet and the financing conditions, Martin?
Last year we finalized one acquisition, Liab in Södertälje outside of Stockholm. Of course, it's been a strategic decision around the kind of activity level acquisition-wise and improving, let's say, the conditions for our current companies, which we think is going the right way. With that said, of course, with the rights issue now strengthening our order backlog or our balance sheet, there is more possibilities going forward in that sense. One shouldn't expect any high activity level during 2026.
You point out the weather a s the main explanation for the downturn in the Nordics. How much of the development do you see as purely weather related, and how much reflects a still weak renovation and construction market in countries such as Denmark?
I would say that the majority is connected to the weather. If you take Denmark as an example, we know that it's a tough situation, and it was also last year. What gladdens me a lot is that Denmark actually had its best year ever for us in Fasadgruppen in 2025, even though the market conditions was tough. That's a proof that the model in Denmark is strong and healthy. I can say some words about Denmark because I'm very proud of what they've done there. They are truly helping each other and collaborating around the projects. I think that ends up to a better customer experience, if we put it like that. Also we see that in the profitability levels. We're very glad that Denmark has performed that well during 2025.
Of course, Q1 in Denmark is connected to or also affected by the weather, but quite decent performance, even though that kind of performance of the weather. Positive numbers from Denmark in Q1.
One last question here. Could you give us some flavor regarding the pro forma net debt to EBITA ?
Yeah. Okay. That was of course the rights issue, I think, if that's included, which it should be, because it's finalized. That was on the first of April or something like that. If you take that into consideration, it was around three times.
Great. Thank you for that. No more questions. Any final remarks, Martin?
As I said now, a cold quarter, but we are very confident in the future and have a stronger backlog going forward. We are very eager to prove ourselves in the coming quarters.