Boreo (BOREO) Q2 2026 earnings summary

Executive summary

• Achieved seventh consecutive quarter of organic growth, with Q2 2026 sales up 12% to EUR 45.1 million and organic growth at 7%; H1 2026 net sales rose 14%, driven by both organic expansion and acquisitions.

• Operational EBIT increased 19% year-over-year in Q2 to EUR 2.6 million, with margin improving to 5.7% from 5.4%; H1 operational EBIT up 21%.

• Strong cash flow generation enabled deleveraging and supports ongoing M&A activities, with operative net cash flow at EUR 1.6 million in Q2.

• Order books continue to grow, especially in Technical Trade and defense-related businesses, with industrial and defense sectors showing improving demand while construction remains subdued.

• Both Electronics and Technical Trade business areas contributed to growth, with Electronics up 15% and Technical Trade up 10% in Q2.

Financial highlights

• Q2 2026 net sales: EUR 45.1 million (+12%); H1 2026 net sales: EUR 84.6 million (+14%).

• Q2 operational EBIT: EUR 2.6 million (+19%); H1 operational EBIT: EUR 4.3 million (+21%).

• Operational EBIT margin improved to 5.7% from 5.4% in the prior year.

• Net cash flow from operating activities: EUR 1.6 million in Q2 (2025: -0.5 million), EUR 3.7 million in H1 (2025: -0.2 million).

• Gross margin stands at 29%, with ongoing focus on margin management.

Outlook and guidance

• Management expects continued sales and profitability growth, supported by operational gearing, robust order books, and ERP benefits.

• No separate short-term financial guidance; long-term targets: minimum 15% average annual operational EBIT growth, minimum 15% ROCE, net debt to operational EBITDA between 2 and 3.

• M&A activity is expected to result in additional deals before year-end, with focus on disciplined acquisitions and balance sheet strengthening.

• Short-term outlook for both business areas remains stable, with gradual improvements anticipated.

• Strong order books, over 25% higher than last year, support continued growth into the second half of 2026.