”A strong second quarter with broad-based organic growth, improved margins, and a new acquisition in the UK. For the first time, we have exceeded our financial target of a margin of at least 15 percent.” Petter Moldenius, CEO
Summary of the second quarter (January 1 – June 30, 2026)
- Net sales increased by 35.6% to SEK 584.5 million (431.0), of which organic growth amounted to 17.4%.
- EBITA increased by 59.0% to SEK 100.0 million (62.9), corresponding to a margin of 17.1% (14.6). On an organic basis, EBITA increased by 34.1%
- The quarter was affected by SEK 4.0 million (1.2) in acquisition costs.
- Operating profit (EBIT) amounted to SEK 87.7 million (56.9), an increase of 54.1%.
- Cash flow from operating activities amounted to SEK 62.0 million (20.0).
- Diluted earnings per share amounted to 1.00 (0.68).
- In April, the acquisition of the British company flex7 Ltd. was completed.
Summary of the first half year (January 1 – June 30, 2026)
- Net sales increased by 31.8% to SEK 1,041.9 million (790.4), of which organic growth amounted to 16.4%.
- EBITA increased by 64.3% to SEK 166.4 million (101.3), corresponding to a margin of 16.0% (12.8). On an organic basis, EBITA increased by 39.2%.
- The period was affected by SEK 5.3 million (3.2) in acquisition costs.
- Operating profit (EBIT) amounted to SEK 146.5 million (90.5), an increase of 61.9%.
- Cash flow from operating activities amounted to SEK 120.8 million (33.3).
- Diluted earnings per share amounted to 1.49 (1.04).
- Two acquisitions were completed during the period.
CEO Comments
The second quarter of 2026 marks a milestone for Karnell. EBITA exceeded SEK 100 million for the first time, and the EBITA margin was 17.1%. The last twelve months’ EBITA margin was 15.4%. We have therefore, for the first time, exceeded our financial target of a margin of at least 15 percent over time – a target announced in connection with our initial public offering in March 2024. This is the result of strong underlying performance across the Group's companies and of acquisitions contributing positively to profitability.
Group development
Net sales increased during the second quarter by 35.6% to SEK 584.5 million, of which organic growth accounted for 17.4%. Acquisitions contributed 19.1%, and currency effects had a negative impact of 0.9%. EBITA amounted to SEK 100.0 million, an increase of 59.0%, with an EBITA margin of 17.1%. Growth was broadly based across the Group.
Cash flow from operating activities amounted to SEK 62.0 million for the quarter and SEK 120.8 million for the first half of the year, compared with SEK 20.0 million in the quarter and SEK 33.3 million for the first half of the previous year. This improvement reflects not only the increased profit but also active efforts to smooth out cash flow over the course of the year. Our geographical expansion, which has brought in companies with lower seasonal variation, and the targeted measures we have implemented within the Group have gradually altered the previous pattern, where a large proportion of cash flow was concentrated in the second half of the year. Following two acquisitions completed in 2026, net debt stands at 1.9x, which is in line with our target of not exceeding 2x over time. Strong organic cash flow generation and a debt level within our target range continue to give us the flexibility to act on attractive acquisition opportunities.
Business areas
In Niche production, net sales increased by 31.2% to SEK 279.1 million, and EBITA amounted to SEK 64.5 million, corresponding to an EBITA margin of 23.1%. The strong momentum from Q1 continued into the quarter, partly driven by continued high demand from a single customer at levels we do not consider sustainable in the long term. Otherwise, performance was broadly based, with high organic activity and good cost discipline in most of the companies.
In the Product companies segment, net sales increased by 39.9% to SEK 305.4 million, and EBITA amounted to SEK 50.3 million, corresponding to an EBITA margin of 16.5%. Overall, performance was in line with our plan for the quarter, with strong performance in both sales and profits in most of the companies.
Acquisitions and outlook
During the quarter, we completed the acquisition of flex7 Ltd, a British developer and manufacturer of modular connection and control systems for lighting in commercial and public buildings. flex7 are off to a good start under Karnell’s ownership and are developing in line with our expectations.
Current market conditions remain mixed. Our decentralized model, the Group’s broad geographical reach and our sector diversification enable us to continue developing our business regardless of short-term economic fluctuations. With strong earnings momentum, a stable financial position and an active acquisition pipeline, we are well positioned to continue creating long-term value through both organic growth and acquisitions.
Petter Moldenius
Chief Executive Officer
Presentation of the report
Karnell presents its interim report for the second quarter of 2026 via webcast and conference call today, Friday 17 June, at 08:30 am CET. The report will be presented by CEO Petter Moldenius and CFO Niklas Svensson. The presentation will be held in English and will also include a Q&A session.
If you wish to participate via webcast please use the link below. Via the webcast you are able to ask written questions.
https://karnell-group.events.inderes.com/q2-report-2026/register
If you wish to participate and ask questions via teleconference, please register on the link below. After registration, you will be provided phone numbers and a conference ID to access the conference.
https://events.inderes.com/karnell-group/q2-report-2026/dial-in
The interim report, the presentation and a recorded version of the presentation will also be available on the company’s website via the link below.
https://karnell.se/en/investors/reports-and-presentations/
For further information, please contact
Petter Moldenius
CEO at Karnell Group AB (publ), +46 8 545 891 00
About Us
Karnell is a growth-oriented industrial technology group that acquires and develops small and medium-sized product companies and niche-producing companies through a systematic and proactive acquisition strategy. With an eternal ownership horizon and decentralized decision-making model, Karnell provides entrepreneurs and family-owned businesses with a long-term and responsible partner. The company's business concept is to identify and acquire companies with an attractive financial profile and develop these businesses by leveraging the group's tools and expertise. The group consists of 20 companies in Sweden, Finland, the United Kingdom and Italy. Karnell is listed on Nasdaq Stockholm.
This information is information that Karnell Group is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 2026-07-17 07:00 CEST.