Ependion released its interim report for January through June 2026 on Monday, reporting notable year-over-year growth in orders and sales for the second quarter.
Quarterly highlights
Order intake for Q2 2026 came in at 695 million Swedish kronor, an increase of 24% from 558 million kronor in the same period a year earlier. Net sales rose 22% to 682 million kronor from 561 million kronor. When adjusted for currency effects and acquisitions, the company stated that net sales expanded by 10%.
On the profitability front, Ependion's EBITA increased to 84.4 million kronor from 65.1 million kronor in the prior-year quarter, lifting the EBITA margin to 12.4% from 11.6%. Profit after tax rose to 45.4 million kronor versus 30.3 million kronor a year earlier, and earnings per share improved to 1.41 kronor from 0.99 kronor.
Free cash flow in the quarter was 40.0 million kronor, down from 62.4 million kronor in Q2 2025.
First-half performance and backlog
For the first six months of 2026, order intake increased 33% to 1,473 million kronor compared with 1,109 million kronor in the year-earlier period. Net sales for the six-month period rose 16% to 1,279 million kronor from 1,106 million kronor.
At the end of the second quarter, the company reported an order backlog of 1,319 million kronor.
Business unit breakdown
The Westermo business entity registered a 26% rise in order intake, reaching 452 million kronor in Q2. The Beijer Electronics business entity posted a 22% increase in order intake to 244 million kronor for the quarter.
Management said demand was broadly positive across most of Ependion's prioritized segments, with particular strength in energy. The company also highlighted that the Beijer Electronics unit displayed greater stability, growth and higher margins.
Accounting and measure changes
During the reporting period, Ependion shifted its operating profit measure from EBIT to EBITA.
Summary assessment
The report reflects robust order growth and improved profitability metrics in Q2 and for the first half of 2026, alongside a reduction in free cash flow compared with the prior-year quarter and a change in the primary operating profit measure which affects comparability.
Key points
- Order intake rose 24% in Q2 to 695 million kronor and 33% for H1 to 1,473 million kronor, supporting a 1,319 million kronor backlog.
- Net sales increased 22% in the quarter to 682 million kronor (10% on a currency- and acquisition-adjusted basis); EBITA improved to 84.4 million kronor with a 12.4% margin.
- Profit after tax and earnings per share grew to 45.4 million kronor and 1.41 kronor respectively, while free cash flow dropped to 40.0 million kronor in Q2.
Risks and uncertainties
- Free cash flow declined from 62.4 million kronor in Q2 2025 to 40.0 million kronor in Q2 2026, which may affect near-term liquidity or funding flexibility.
- Reported net sales growth differs notably when adjusted for currency effects and acquisitions (10% adjusted versus 22% headline), indicating sensitivity to those factors.
- The company changed its operating profit metric from EBIT to EBITA during the reporting period, which limits direct comparability with prior-period operating-profit disclosures.
All figures are presented in Swedish kronor and cover the periods specified in Ependion's interim report for January through June 2026.