MEKO (MEKO) Q2 2026 earnings summary

Executive summary

• Adjusted EBIT rose 32% year-over-year to SEK 232M, driven by higher gross margin and lower costs, with all business areas reporting profitability, including Poland and Finland.

• Net sales for Q2 2026 increased 1% year-over-year to SEK 4,562M, with organic growth flat and positive currency effects of 1%.

• Leverage reduced to 3.4x, reflecting improved earnings and financial discipline.

• Initiatives to drive long-term growth include e-commerce expansion, digitalization, and own brands.

• Board strengthened with two new members and resolved not to pay a dividend for 2025.

Financial highlights

• Q2 2026 net sales: SEK 4,562M (4,508), EBIT: SEK 199M (91), adjusted EBIT: SEK 232M (175), EPS: SEK 1.42 (-0.12).

• H1 2026 net sales: SEK 9,002M (9,070), EBIT: SEK 372M (252), adjusted EBIT: SEK 432M (406), EPS: SEK 2.42 (0.73).

• Gross margin for Q2 improved to 42.9% (41.8%), driven by price optimizations and favorable FX.

• Cash flow from operating activities in Q2: SEK 73M (498); H1: SEK 514M (376).

• Leverage ratio reduced to 3.4x at quarter-end, down from 4.0x at start of year.

Outlook and guidance

• Continued focus on profitability, efficiency, and digital innovation, especially in Poland, with targeted workforce reductions aiming for profitability by end of 2026.

• Accelerating growth initiatives in e-commerce, exclusive brands, and EV capabilities.

• Long-term targets: annual sales growth ≥5%, adjusted EBIT growth ≥10%, net debt/EBITDA 2.0–3.0x, dividend payout 50% of profit after tax.

• Ambition to reach leverage target range (2x–3x) by year-end if current pace continues.

• No explicit guidance on organic growth for H2, but strong ambitions and ongoing actions to achieve it.