Boreo Plc, HALF-YEAR REPORT JAN. 1 TO JUN. 30, 2026
August 6, 2026, at 9:00 EET
Seventh consecutive quarter of organic growth - a solid foundation for the second half of the year
April-June 2026
- Net sales increased by 12% to EUR 45.1 million (2025: 40.2). Organic growth was 7%.
- Operational EBIT increased by 19% to EUR 2.6 million (2025: 2.2) and was 5.7% of net sales (2025: 5.4%).
- EBIT amounted to EUR 1.7 million (2025: 2.5). The result for the comparison period was significantly supported by a non-recurring item of EUR 0.8 million of negative goodwill.
- Net cash flow from operating activities increased significantly to EUR 1.6 million (2025: -0.5).
- Earnings per share decreased to EUR 0.22 (2025: 0.43).
January-June 2026
- Net sales increased by 14% to EUR 84.6 million (2025: 74.2). Organic growth was 8%.
- Operational EBIT increased by 21% to EUR 4.3 million (2025: 3.5) and was 5.0% of net sales (2025: 4.7%).
- EBIT amounted to EUR 2.6 million (2025: 4.0). The result for the comparison period was significantly supported by non-recurring items of EUR 1.5 million, consisting of the recognition of negative goodwill of EUR 0.8 million and a gain on sale of property of EUR 0.7 million.
- Net cash flow from operating activities increased significantly to EUR 3.7 million (2025: -0.2).
- Earnings per share decreased to EUR 0.16 (2025: 0.53).
Group's key figures
EUR million | Q2 2026 | Q2 2025 | Change | H1 2026 | H1 2025 | Change | Q1-Q4 2025 |
Net sales | 45.1 | 40.2 | 12 % | 84.6 | 74.2 | 14 % | 153.3 |
Operational EBIT | 2.6 | 2.2 | 19 % | 4.3 | 3.5 | 21 % | 8.0 |
relative to the net sales % | 5.7 % | 5.4 % | - | 5.0 % | 4.7 % | - | 5.2 % |
EBIT | 1.7 | 2.5 | -32 % | 2.6 | 4.0 | -34 % | 6.7 |
Cash conversion, % | 55 % | 6 % | - | 79 % | 13 % | - | 83 % |
Net debt to EBITDA1) | 2.1 | 2.3 | - | 2.1 | 2.3 | - | 2.1 |
Return on Capital Employed (ROCE %)2) | 9.6% | 8.4% | - | 9.6% | 8.4% | - | 8.8% |
EPS, EUR3) | 0.22 | 0.43 | - | 0.16 | 0.53 | - | 0.72 |
1) Net debt to operational EBITDA for the preceding 12 months. Calculated in accordance with the calculation principles agreed with the lenders. The calculation formula is presented later in this report.
2) Calculated based on the preceding 12 months (R12).
3) The calculation of basic earnings per share has taken into account the effect of interest on the hybrid bond recognised in equity, adjusted for tax effects. In Q2 2026, this net effect was EUR 0.19 per share, in Q2 2025 EUR 0.16 per share, in H1 2026 EUR 0.38 per share, in H1 2025 EUR 0.33 per share, and in Q1-Q4 2025 EUR 0.72 per share.
Q2/2026 - CEO Tuomas Kahri:
Strong growth enables profitability improvement and the execution of acquisition-driven strategy
Boreo's second quarter of 2026 continued the strong growth trajectory and demonstrated that the company's long-term strategy is delivering results. Net sales increased by 12%, driving a clear 19% improvement in operational EBIT to EUR 2.6 million (5.7% of net sales). During the second quarter, both business areas grew, with the Technical Trade business area increasing by 10% and the Electronics business area by 15% compared to the second quarter of the previous year.
During the first half of the year, net sales increased by 14%, with Group net sales amounting to EUR 84.6 million (2025: 74.2). Operational EBIT increased by 21% to EUR 4.3 million (2025: 3.5).
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 79%. Net cash flow from operating activities for the first half of the year amounted to EUR 3.7 million (2025: -0.2), enabling the company to reduce debt as planned while providing the flexibility to continue executing its acquisition-driven growth strategy. The company's financial position strengthened, and net debt to operational EBITDA for the preceding 12 months was 2.1.
Boreo continues to execute its long-term strategy, focusing on earnings growth through organic growth and acquisitions
Seven consecutive quarters of net sales growth, together with cost competitiveness improving measures implemented during 2024-2025, provide a solid foundation for the execution of Boreo's strategy for profitable growth. In 2026, the company has three key priorities to support the achievement of its strategic objectives: 1) increasing acquisition activity with a focus on expanding existing businesses, 2) evaluating the role and earnings capability of each company to identify organic and inorganic growth opportunities and to guide capital allocation, and 3) continuing to strengthen the balance sheet to accelerate acquisitions and growth initiatives.
Activating acquisitions
Boreo has increased its activity in the acquisition market during 2026. We have updated our acquisition process and significantly increased our activity in analyzing potential acquisition targets. We have identified the existing businesses with the strongest potential for inorganic growth and are actively seeking acquisition targets to support their expansion. In addition, we continuously evaluate opportunities that meet Boreo's acquisition criteria with broader scope.
This increased activity is reflected both in the growing number of opportunities under review and in tangible progress. We currently have active acquisition processes underway and are well positioned to complete acquisitions during the second half of the year. The targets operate in attractive markets, have appealing profitability profiles, and fit well within Boreo's existing business areas.
Clarifying the roles of the operating companies
We have further developed our operating model for managing our operating companies. We manage our companies in business clusters, bringing together companies that serve similar customers or product categories. We systematically develop and share customer interface best practices across our companies. Our operating model enables the management of the companies to focus on developing their businesses, while Boreo supports them, for example, in executing acquisitions. We have also identified individual companies whose roles should be further clarified. The first step in this process was announced on 31 July 2026, when FNB divested its subsidiary Lackmästarn.
The order books of our companies remain at a strong level, clearly above 2025 comparison period. Increased economic activity in Finland is supporting our business despite continued macroeconomic uncertainty.
The increase in net sales during the first half of the year has been achieved without a significant increase in costs, and the company's earnings performance is expected to continue improving towards the end of the year. This is supported by the strong order book of the Technical Trade business area and the initial cost benefits from the completed ERP projects. The short-term demand outlook for our industrial companies remains solid, with particularly strong growth in the defence industry and backup power businesses further supporting the growth of Milcon and Machinery. In addition, the clearly improved investment activity of customers in manufacturing industry is supporting the business of several of our companies. In particular, Machinery MT's order book remains at a high level. The outlook for the companies serving the construction industry remains subdued, although customer demand has started to recover cautiously for deliveries later in the year.
All ERP renewal implementation projects planned for 2026 have now been successfully taken into use. The realization of the benefits from these new systems is progressing on plan. These projects will improve efficiency and reduce fixed costs in the coming years. Implementation costs of approximately EUR 0.3 million have been adjusted from operational EBIT.
Strengthening the balance sheet
Strong organic growth improved gross margins and moderate cost development during the first half of 2026 demonstrate the scalability of Boreo's operating model. The strong earnings development is reflected in improved returns on capital, with return on capital employed (ROCE) increasing to 9.6% (2025: 8.4%) at the end of the second quarter. The company's leverage continues to decline, providing a strong foundation for developing its capital structure. This is intended to reduce the company's financing costs while supporting acquisition-driven growth.
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 presentation hosted by the company's CEO, Tuomas Kahri, will be held on the publication date at 11:00 a.m. EEST. The event will be held in English, and participants may ask questions after the presentation. The presentation material will be available before the webcast begins on Boreo's website at www.boreo.com/investors.
The webcast can be followed at https://boreo.events.inderes.com/q2-2026. A recording of the webcast will be available after the event at www.boreo.com/investors.
Boreo Plc's Financial Reporting 2026
Interim Report January-September 2026: 29 October 2026
Financial reports will be published in Finnish and English on the above dates at approximately 9:00 a.m. EEST. Boreo observes a 30-day silent period preceding the publication of its financial reports, ending on the publication date.
Vantaa, 6 August 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.
