Sweden · Delayed Price · Currency is SEK Instalco AB Earnings Call Transcripts
Fiscal Year 2026
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Q2 2026 saw strong organic growth, improved profitability, and a record order backlog, driven by operational improvements and market recovery. The acquisition of majority control in Fabri expands the platform into Germany, while Instalco AI and disciplined capital allocation support long-term growth.
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Net sales and order backlog grew across all regions, with strong cash flow and improved EBITDA margins. Instalco 2.0 transformation is progressing, supporting operational improvements and resilience, while market recovery remains gradual and uneven.
Fiscal Year 2025
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Q4 saw a return to EBITDA growth after seven quarters, driven by operational improvements and disciplined project selection. Cash flow and margins improved, with strong performance in Norway and Germany, while market recovery remains gradual and uneven.
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Net sales and earnings declined year-over-year, but operational cash flow remained strong and the order backlog grew, especially in the Nordics. Margin improvement is the top priority, with a new country-based structure and operational model in place.
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Net sales and EBITDA margins improved sequentially, with strong cash flow and a growing order backlog despite a challenging market. Operational focus is on margin recovery, selective project tendering, and continued investment in Germany and automation.
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Net sales and order backlog showed slight growth in Q1 2025, with service revenues stabilizing results despite margin pressure from one-off costs and a challenging market. Cash flow and financial position remain strong, and early signs of recovery are visible in Sweden.
Fiscal Year 2024
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Net sales declined and margins compressed in a tough market, but service business growth and strong cash flow provided stability. Strategic actions included subsidiary closures, entry into Germany, and new climate targets. Cautious optimism prevails for 2025.
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A phased acquisition of Fabri enables entry into Germany's large, fragmented installation market, leveraging local expertise and a proven M&A model. The stepwise deal structure minimizes risk, aligns incentives, and sets the stage for long-term growth and value creation.
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Q3 saw a 5% decline in net sales and lower EBITA margin due to market weakness and project write-downs, especially in Sweden. Service business grew 17% and cash conversion remained strong at 87%. Leverage increased to 2.7x EBITDA, but significant covenant headroom remains.
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Q2 saw net sales decline 4.6% year-over-year to SEK 3.6 billion, with EBITDA margin at 7.2%. Service revenue remained strong, and a new automation business area, Inmatic, was launched. Market recovery is expected to be gradual, with no material improvement before late 2024.