"A record quarter with broad-based organic growth in both business areas. Despite some temporary effects, the underlying trend is stable - a strong platform for continued profitable growth." Petter Moldenius, CEO
Summary of the third quarter (1 July - 30 September 2026)
- Net sales increased by 33.4% to SEK 581.5 million (436.1), of which organic growth amounted to 18.8%.
- EBITA increased by 73.0% to SEK 120.0 million (69.4), corresponding to a margin of 20.6% (15.9). On an organic basis, EBITA increased by 42.6%.
- The quarter was affected by SEK 0.9 million (1.9) in acquisition costs.
- Operating profit (EBIT) amounted to SEK 107.3 million (62.3), an increase of 72.3%.
- Cash flow from operating activities amounted to SEK 134.8 million (46.4).
- Diluted earnings per share amounted to SEK 0.83 (0.85).
Summary of the first nine months (1 January - 30 September 2026)
- Net sales increased by 32.4% to SEK 1,623.4 million (1,226.5), of which organic growth amounted to 17.3%.
- EBITA increased by 67.8% to SEK 286.4 million (170.7), corresponding to a margin of 17.6% (13.9). On an organic basis, EBITA increased by 40.7%.
- The period was affected by SEK 6.2 million (5.0) in acquisition costs.
- Operating profit (EBIT) amounted to SEK 253.8 million (152.8), an increase of 66.1%.
- Cash flow from operating activities amounted to SEK 255.6 million (88.6).
- Diluted earnings per share amounted to SEK 2.31 (1.89).
- Two acquisitions were completed during the period.
CEO Comments
The third quarter of 2026 is the strongest in Karnell's history in terms of earnings. In line with the preliminary figures we published on October 12, 2026, the quarter was very strong. EBITA increased by 73.0% to SEK 120 million and the EBITA margin was 20.6% (15.9). Performance was strong in both business areas. At the same time, I would like to emphasize that part of the result is attributable to factors of a temporary nature. In addition, the third quarter is seasonally the Group's strongest, and the quarter's outcome should therefore not be seen as a new normal level for coming quarters.
Group development
Net sales increased by 33.4% to SEK 582 million, of which organic growth accounted for 18.8%. Acquisitions contributed 14.6%, and currency effects were marginal. On an organic basis, EBITA increased by 42.6%, acquisitions contributed 30.9%, and currency effects had an impact of -0.5%. The last twelve months' EBITA margin was 16.7%, which is above our target of at least 15 percent in the medium term. Cash flow from operating activities amounted to SEK 135 million (46) for the quarter and SEK 256 million (89) for the first nine months of the year.
During the quarter, organic earnings growth was broadly based, with significant contributions from several companies in both business areas. Even adjusted for the factors of a temporary nature described below, underlying performance is good. Market conditions remain mixed, although we are seeing some improvement in Finland. Growth is primarily driven by our companies gaining market share and developing customers with good growth potential, where new customer relationships that we have been working on for some time are now starting to contribute.
Business areas
In Niche Production, net sales increased by 45.1% to SEK 271 million and EBITA increased by 86.5% to SEK 64 million, corresponding to an EBITA margin of 23.6%. Organic sales growth amounted to 28.0%. The high demand from a single customer of one of the companies in the business area, which we have communicated during the earlier quarters of the year, continued in the third quarter. The company increased its EBITA organically by approximately SEK 10 million, corresponding to roughly one third of the Group's organic earnings growth in the quarter. This is a clearly lower share than in the first half of the year, which shows that the improvement is now more broadly based. Lead times from order to delivery are short and we have limited visibility going forward, but we continue to assess that demand is at levels that are not sustainable in the long term.
In Product Companies, net sales increased by 24.6% to SEK 310 million, of which organic growth accounted for 11.8%. EBITA increased by 54.0% to SEK 71 million, corresponding to an EBITA margin of 22.8%. Performance reflects both underlying strength and effects of a temporary nature. Several companies grew organically by gaining market share. In addition, certain companies benefited from larger deliveries, which naturally vary between quarters, and from price adjustments taking effect ahead of cost increases. Other companies, however, performed weaker than in the previous year.
Acquisitions and outlook
The two acquisitions we completed during the year, OBA Tf and flex7, are developing in line with our expectations and are contributing positively to the Group's profitability. We have had several interesting processes that did not materialize, which is a natural consequence of us maintaining our discipline regarding valuation and choice of companies. At the same time, we are continuously working to broaden and deepen our acquisition pipeline. With strong cash flows, combined with the earnings from this year's acquisitions now having full effect, the leverage ratio has decreased to 1.4x, compared with 1.9x at the end of the second quarter. This gives us the flexibility to act when the right opportunities arise.
Our decentralized model, geographical reach and sector diversification enable us to continue developing our business regardless of short-term economic fluctuations. With good underlying strength in our companies and a stable financial position, we are well positioned to continue developing Karnell, both organically and through acquisitions.
Petter Moldenius
Chief Executive Officer
Presentation of the report
Karnell presents its interim report for the third quarter of 2026 via webcast and conference call today, Friday 23 October, at 08:30 am CEST. 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/q3-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/q3-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.
