Boreo Plc, INTERIM REPORT JAN. 1 TO MAR. 31, 2026
April 29, 2026, at 9:00 EET
Strong first quarter, both net sales and operational EBIT continued to grow
January-March 2026
- Net sales increased by 16% to EUR 39.5 million (2025: 34.0). Organic growth was 9%.
- Operational EBIT increased by 28% to EUR 1.7 million (2025: 1.3) and was 4.3% of net sales (2025: 3.9%).
- EBIT was EUR 0.9 million (2025: 1.5). The comparison period result was significantly supported by positive non-recurring items of EUR 0.6 million.
- Net cash flow from operating activities increased to EUR 2.1 million (2025: 0.3).
- EPS decreased to EUR -0.06 (2025: 0.10).
Group's key figures
EUR million | Q1 2026 | Q1 2025 | Change | Q1-Q4 2025 |
Net sales | 39.5 | 34.0 | 16 % | 153.3 |
Operational EBIT | 1.7 | 1.3 | 28 % | 8.0 |
relative to the net sales % | 4.3 % | 3.9 % | - | 5.2 % |
EBIT | 0.9 | 1.5 | -38 % | 6.7 |
Cash conversion, % | 116 % | 22 % | - | 83 % |
Net debt to EBITDA 1) | 2.2 | 3.1 | - | 2.1 |
Return on Capital Employed (ROCE %) 2) | 9.1% | 8.8% | - | 8.8% |
EPS, EUR 3) | -0.06 | 0.10 | - | 0.72 |
1) Net debt relative to the operational EBITDA of the previous 12 months. Calculated in accordance with the calculation principles agreed with financiers. The formula is presented later in this report.
2) Calculated based on the previous 12 months (R12).
3) Since 2022, the calculation of basic earnings per share has taken into account the interest on the hybrid bond recorded in equity, adjusted for tax effects. In Q1 2026, this net effect was EUR 0.19 per share, in Q1 2025 EUR 0.17 per share, and in Q1-Q4 2025 the net effect was EUR 0.72 per share.
Q1/2026 - CEO Tuomas Kahri:
Strong first quarter, good foundation for continued earnings improvement
The first quarter of 2026 was successful. Net sales increased by 16%, driving a clear 28% improvement in operational EBIT to 1.7 million (4.3% relative to the net sales). Net sales grew for the sixth consecutive quarter. Both business areas recorded growth during the first quarter. The strong performance was particularly supported by the Technical Trade business area, which grew by 21%. The Electronics business area grew by 10% compared to the first quarter of the previous year.
In addition to strong earnings growth, we succeeded in managing working capital. As a result of the reduction in working capital, cash conversion was strong at 116%. The company's financial position strengthened, and net debt relative to the last 12 months' operational EBITDA was 2.2.
Strengthened order books support growth
The order books of our companies continued to strengthen from the previous quarter and are clearly above the level at the beginning of 2025. Despite increased macroeconomic uncertainty, our customers' activity levels have remained solid during the period, providing a foundation for continued earnings improvement.
The company's earnings potential is expected to improve towards the end of the year, supported by the Technical Trade business area's order books being more weighted towards the latter part of 2026 than usual, as well as the completion of ongoing ERP projects. The short-term demand outlook for our industrial companies is overall solid, and the strong development in the defense industry continues to support the growth of Milcon, which has further strengthened its position in the sector. The activity of Machinery's customers have also clearly picked up, driven by improving investment activity in manufacturing industry. The outlook for companies operating in the construction industry remains subdued, although the customer demand is showing cautious improvement for deliveries later in the year.
Focus on growth through organic initiatives and acquisitions
In 2026, we have three main focus areas: 1) accelerating M&A activities, focusing to expand our existing businesses, 2) reviewing the role and status of each operating company to identify potential organic and inorganic growth opportunities to drive future capital allocation priorities, 3) further strengthening the balance sheet to support M&A and growth activities.
During 2026, the company's earnings improvement is supported by the systematic development of organic growth in existing companies as well as the development of operating models. We are also developing cooperation between companies operating in the similar industries (clusters) and sharing best practices in the customer interface. The first of the five ERP system renewal projects planned for 2026 has been successfully completed, and the four ongoing projects are progressing according to the plan. These projects will improve efficiency and reduce fixed costs in the coming years. Implementation costs of the projects have been adjusted in the operational EBIT.
Financial guidance and business model
Boreo's focus is on earnings growth with attractive return on capital. The company's long-term strategic financial targets are:
- Minimum 15% average annual operational EBIT growth
- Minimum 15% Return on Capital Employed (ROCE)
- Net debt to operational EBITDA between 2 and 3 (including acquired businesses as if they had been held for 12 months at the reporting date)
Boreo's dividend policy is to pay an annually increasing dividend per share, considering capital allocation priorities.
The above-mentioned strategic financial objectives serve as the company's financial guidelines. In line with its guidance policy, the company does not give separate short-term financial guidance.
Briefing for investors, analysts and media
A webcast where CEO Tuomas Kahri, Head of M&A & Financing Rafael Osmanov and VP, Finance Sami Hanerva present the Interim report will be held today at 11:00 am EET. The presentation is in English and questions can be asked after the presentation. The presentation material is available before the webcast on Boreo's website: www.boreo.com/investors.
You can watch the webcast at: https://boreo.events.inderes.com/q1-2026. The event will be recorded and the recording will be available after the event at: www.boreo.com/investors.
Boreo Plc's Financial Reporting 2026
Half-year report for January-June 2026: 6 August 2026
Interim report for January-September 2026: 29 October 2026
Financial reports will be published in Finnish and in English approximately at 9:00 EET. Boreo applies a 30-day silent period which ends on the day of publication.
Vantaa, April 29, 2026
BOREO PLC
Board of Directors
Additional information:
Tuomas Kahri
CEO
tel +358 50 435 1944
Distribution:
NASDAQ Helsinki Ltd
Financial Supervisory Authority
Principal media
www.boreo.com
Boreo in brief:
Boreo is a company listed on Nasdaq Helsinki that creates value by owning. acquiring and developing small and medium-sized companies in the long-term. Boreo's business operations are organized into two business areas: Electronics and Technical Trade.
Boreo's primary objective is sustainable long-term profit generation. This is achieved with a business model that is based on the acquisition and ownership of great entrepreneurial companies with the ability to generate sustainable long-term earnings growth and strong cash flows. The profits generated by the portfolio of companies are re-invested back to operations or to acquisitions with attractive expected returns on capital. The decentralized operating structure promoting a culture of ownership and release of entrepreneurial energy is a core pillar of the company's business concept and sustainable earnings growth is ensured through the support and coaching of companies and the personnel.
The Group's net sales in 2025 were EUR 153 million and it employs over 300 people in seven countries. The company's headquarter is in Vantaa.
