Ratos (RATO) Q2 2026 earnings summary

Executive summary

• Q2 2026 delivered 3.4% organic growth, adjusted EBITA up 14% to SEK 988m, and margin at 17.3%.

• Nearly all portfolio companies improved, notably Diab and Speed; EPS up 36% year-over-year.

• Strong cash flow and cash conversion above 100%, supported by M&A insurance proceeds and Sentia sell-down.

• Continued execution of the 2030 strategy, including portfolio focus, divestments, and add-on acquisitions.

• Significant deleveraging, with net debt/EBITDA reduced to 1x, below the target range.

Financial highlights

• Net sales reached SEK 5,703m in Q2 2026 (+2% year-over-year); adjusted EBITA SEK 988m (+14%), margin 17.3%.

• Adjusted EPS up 36% to SEK 1.97; diluted EPS SEK 3.15 in Q2.

• Cash flow from operating activities up 42% to SEK 1,519m in Q2; cash conversion above 100%.

• ROCE at 7.3%, with Diab at 14.8%, HL Display at 20.3%, and TFS at 16.9%.

• Reported tax rate at 12%, below normalized range of 17%-19%.

Outlook and guidance

• Focus remains on sustaining profitable, capital-efficient growth through organic initiatives and strategic add-ons.

• Ongoing divestment of non-core companies and continued investment in core platforms.

• Portfolio companies expected to benefit from high activity in defense, industrial, and energy sectors.