Growth in Q1 amounted to 3% after a volatile quarter impacted by geopolitical turbulence and cold weather. EBITA improved to SEK 7 (6) million driven by increased sales and improved gross margins in ten out of twelve subsidiaries. Borö-Pannan's restructuring is continuing according to plan, but with temporarily increased costs, which were charged to the quarter. After the end of the quarter, Seafire's acquisition of Splendor Plant was completed and a rights issue of SEK 140 million. Through the acquisition, net sales will increase by about 21% and EBITA by about 39% (2025 pro forma) and the Group's balance sheet is strengthened with scope for further acquisitions.
Q1 2026
- Net sales amounted to SEK 212 (207) million, an increase of 3 percent compared with the same period in 2025, of which organic growth accounted for 3 percent.
- Adjusted EBITA amounted to SEK 7 (6) million, an increase of 29 percent, corresponding to a margin of 3 (3) percent.
- EBITA amounted to SEK 7 (6) million, corresponding to a margin of 3 (3) percent.
- Operating profit (EBIT) amounted to SEK 2 (0) million.
- Basic and diluted earnings per share amounted to SEK -0.03 (-0.17).
- Operating cash flow before tax amounted to SEK -6 (-1) million.
Significant events during and after the reporting period
- In February 2026, Seafire signed an updated financing facilities agreement of SEK 250 million in total with an existing bank. The agreement runs for 2+1 years and involves lower amortization rates and lower interest margins.
- On March 4, 2026, Seafire entered into an agreement on the acquisition of all shares in Splendor Plant AB for a purchase price of SEK 135 million on a cash and debt-free basis with a possible earn-out of SEK 15 million. Splendor is the Nordic region's largest wholesale plant nursery and supplier of garden plants.
- To finance the acquisition and increase financial flexibility for further acquisitions, a fully guaranteed rights issue was carried out of approximately SEK 140 million before deduction of transaction costs. The rights issue was oversubscribed, corresponding to approximately 126.6 per cent of the shares offered, 97.1 percent of which were subscribed for using subscription rights.
- On April 30, 2026, the acquisition of Splendor was completed and the company will be consolidated in the Group starting from May 1, 2026. If Seafire had owned Splendor during 2025, the Group's net sales, on a pro forma basis, would have increased by 21 percent to SEK 1,128 million while adjusted EBITA would have increased by 39 percent to SEK 68 million. As part of the purchase price, pursuant to the authorization from the 2025 Annual General Meeting, two directed issues totaling 2,619,168 shares (corresponding to SEK 17.5 million) were carried out to the three sellers of Splendor Plant. The new total number of shares and votes in Seafire thereafter amounts to 71,173,676. In connection with the completion of the acquisition, the bank loan was also increased by SEK 50 million.
THE CEO'S COMMENTS ON Q1
The first quarter of 2026 marked the fourth consecutive quarter of organic growth for Seafire. The summary of growth in Q1 was not a given in a quarter with volatility influenced by geopolitics and weather conditions. Profit increased despite increased costs due to Borö-Pannan's ongoing restructuring. The acquisition of Splendor Plant and the related rights issue were concluded after the quarter and mark a new chapter for Seafire.
Sales growth in a seasonally small quarter
Net sales in the first quarter increased by 3 percent, where effects from implemented structural changes (discontinued and divested operations) had a negative impact of approximately three percentage points. Q1 is Seafire's smallest quarter seasonally, with Q2 and Q3 normally having the highest level of activity. The quarter was volatile with a weak development in January and February but with a strong recovery in March. DOFAB performed particularly well, supported by a robust order book and underlying interest driven by stronger consumer sentiment and partly by pent-up demand. Bara Mineraler and Nordbutiker were negatively impacted by a cold start to the year but showed a good recovery in March. We remain focused on earnings rather than on volume and net sales.
Growth and improved gross margin driving improved earnings
The gross margin continued to increase and was 49 (48) percent in the quarter, with an improvement in ten out of twelve subsidiaries driven by active measures. EBITA increased to SEK 7 (6) million despite an increased cost level. Borö-Pannan's transformation project is continuing and the Kalix facility will take over production from Motala at the end of the first half of 2026. The cost level is temporarily elevated until the move is completed. Nordbutiker has inaugurated the reconstructed facility in Rimbo and the relocation from Norrtälje will be completed in Q2, and the last inventory for the Rull segment was also sold during the quarter.
Satisfactory cash flow and reduced debt
The operating cash flow was satisfactory, particularly in view of seasonal patterns, strong sales in March as well as inventory build-up in Borö-Pannan before the relocation. Our focus on working capital is continuing but as previously communicated, the full effects will take time to achieve. Net debt including tax deferrals decreased to SEK 242 (308) million and the Net debt/EBITDA ratio was 3.0x (4.3x) at the end of the quarter, excluding tax deferrals 2.5x (3.3x).
Transformative acquisition of Splendor Plant completed
After the end of the quarter, a rights issue of SEK 140 million was carried out and the acquisition of Splendor Plant was completed.The significantly oversubscribed (127 percent) rights issue was a sign of strength in a turbulent stock market - we thank you, our shareholders, for your trust. The acquisition of Splendor is strategically important and creates a larger and more resilient Seafire with about 20 percent higher net sales and 40 percent higher EBITA (2025 pro forma). The acquisition, the rights issue and the new financing facilities agreement reduce our debt ratio and increase our available liquidity for acquisitions and investments.
Cautiously positive outlook, volatile macro environment
The start of 2026 has been turbulent with disruptions in supply chains and increased energy costs. We see signs of good underlying demand, but at the same time realize that geopolitics, which is beyond our control, has a major impact on our subsidiaries on both the cost and demand side. We ensure good preparedness and are ready to act according to prevailing circumstances. Our priorities are continued profit growth, cash flow and value-creating acquisitions related to our subsidiaries.
I would like to extend a big thank you to all employees in the Group for your dedicated efforts and to our shareholders for your continued support and trust.
Daniel Repfennig
President and CEO
For more information, please contact
Daniel Repfennig, CEO, +46 722-00 89 41, daniel.repfennig@seafireab.com
Per Bodén CFO, +46 70-236 54 74, per.boden@seafireab.com
About Seafire
Seafire is a company group consisting of the business segments Industrial components and Products, which acquires and develops companies in Sweden. The group was founded in 2016 and focuses on acquiring profitable companies with development potential. Seafire consists of 13 operating companies with sales of slighlty above 1.1 billion SEK. The company's shares are listed on Nasdaq Stockholm. For more information, please visit www.seafireab.com/en.
This information is information that Seafire is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2026-05-22 08:00 CEST.
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Daniel Repfennig, CEO
