Sdiptech AB (publ) Interim report January – March 2026

FIRST QUARTER 2026

• Net sales amounted to SEK 1,259 million (1,330). Organic growth amounted to +6%, while the currency effect was -7%. 
• EBITA amounted to SEK 162 million (255) corresponding to an EBITA margin of 12.9% (19.2). Profit is impacted by recognised capital losses from the quarter's divestments of SEK -84 million. 
• Adjusted EBITA amounted to SEK 246 million (251). Organic growth amounted to +4%, while the currency effect was -7%. The adjusted EBITA margin amounted to 19.5% (18.9). 
• Profit before tax amounted to SEK 63 million (123). Profit after tax amounted to SEK 21 million (74) and earnings per share amounted to SEK 0.54 (1.83). 
• Cash flow from operating activities was affected by increased working capital and amounted to SEK 116 million (170), corresponding to a cash flow generation of 54% (74), and a free cash flow per share of SEK 1.36 (2.75). 
• During the period, nine divestments were completed. In total, ten of the eleven companies included in the strategic review initiated in 2025 have been divested. 
• Redemption of the company's preference share has been carried out, which has impacted liquidity by SEK 184 million. 

SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD 

• The company repurchased sustainability-linked bonds at a value of SEK 250 million. 
• The acquisition of the Dutch company Rail Safety Systems was completed. 

COMMENTS BY THE CEO
STABLE ORGANIC PROFIT GROWTH AND MOMENTUM IN STRATEGIC INITIATIVES 

In the first quarter of 2026, net sales for the group increased organically by 6 percent and earnings were stable with organic profit growth of 4 percent, excluding currency effects. All in all, we see a solid demand for our business units' products and services in our four business areas, all of which are benefiting from underlying structural growth.  

Momentum in strategic execution 
During the first quarter, we completed nine divestments and in total, we have now divested ten of the eleven companies included in the strategic review initiated in 2025. The transactions were completed on average at multiples above 6x EBITA and generated a positive cash flow of SEK 258 million in the quarter. 

We continue to work actively with a focus on returns from each business unit. The return on the group's capital employed, ROCE, amounted to 12.8 percent in the quarter, compared with 12.5 percent in the first quarter last year. 

During the quarter, we have redeemed all Sdiptech’s preference shares for a total redemption amount of SEK 184 million, to streamline our capital structure. Despite this measure, we have reduced our net debt/equity ratio to 2.81 in the first quarter. The cash position at the end of the quarter was strong and we have had the opportunity to continue to streamline our financing after the end of the quarter through the repurchase of SEK 250 million of the group's outstanding bonds. 

Financial development in the quarter 
The demand for our products and services was generally solid in the first quarter, which resulted in stable organic growth and profitability. This is particularly evident in the Energy & Electrification and Security & Safety business areas, both of which showed a profit growth of more than 15 percent in the first quarter, driven by strong trends in electrification and data centre security solutions. 
   
Within Water & Bioeconomy, we continue to focus on operational improvements. Several of our business units in the area recorded stable demand, but operational as well as organisational measures have been taken, resulting in a larger cost base, compared with the previous year. With higher volumes in the business area, we expect margins to recover during the year. 

Net sales in our largest business area, Supply Chain & Transportation, developed steadily in the first quarter, with a growth of 4 percent, excluding currency effects, which is positive after last year's cautious market. Several units within the business area developed well in the quarter, including for example our operations in forklift accessories. However, results were negatively impacted as strong order intake in a couple of larger units could only begin to be delivered towards the end of the period. 

Cash flow from operating activities was weaker during the quarter, SEK 116 million, mainly due to a higher proportion of deliveries toward the end of the period, which increased trade receivables and temporarily had a negative impact on cash flow. In addition, inventory build-up occurred in several units to mitigate potential supply chain disruptions due to the geopolitical situation. On a rolling twelve-month basis, we continue to have a solid cash conversion rate of 82%. 

Increased pace in M&A 
In 2026, we have increased our M&A activity in line with our growth strategy. We are engaged in several ongoing constructive discussions, and after the end of the first quarter we were pleased to welcome Rail Safety Systems (RSS), which will be part of the Supply Chain & Transportation business area. RSS is based in the Netherlands and has extensive experience in railway safety, as well as a strong position in the European market with its own market-leading products. 

Growth - our focus going forward 
2026 is the starting year for our updated strategy and financial targets. We have clear guidelines and targets for our focused portfolio, we have a strong pipeline for upcoming acquisitions, and we have strengthened our capital structure. Overall, the first quarter was a successful period for our strategic work, both in terms of the divestment program, and the implementation of our updated strategy and ways of working. 

Looking ahead, our full focus is on driving sustainable, long-term growth—both organic and acquisitive—based on available free cash flow and disciplined capital allocation. 

Anders Mattson, President & CEO 

Invitation to webcast
The report will today be presented by Sdiptech’s President and CEO Anders Mattson and CFO Bengt Lejdström.
Date: Tuesday, 28 April 2026
Time: 10:00 (CEST).

Webcast
To participate via the webcast, please register here.
Teleconference
To participate via the teleconference, please register here.
Participants will be able to ask questions verbally via the teleconference and submit written questions during the webcast.

For additional information, please contact:
Bengt Lejdström, CFO, [phone], [e-mail] 
Anders Mattson, CEO, [phone], [e-mail]

About Us
Sdiptech is a technology group that acquires and develops market-leading niche operations that contribute to creating more sustainable, efficient and safe societies. Sdiptech has approximately SEK 4,500 million in sales and is based in Stockholm.

Sdiptech’s common shares of series B are traded on Nasdaq Stockholm under the short name SDIP B with ISIN code SE0003756758. Further information is available on the company's website: www.sdiptech.se

This information is information that Sdiptech is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2026-04-28 07:30 CEST.

Attachments
Sdiptech Interim Report Q1 2026