Arjo Ab (publ) Stock Earnings Reports

Arjo reported a solid Q2 2026 with organic sales growth of 4.7% and particularly strong performance in global sales, Western Europe (6%) and Rest of World. ReNu (reprocessing/disposable re-use) delivered all‑time high sales, reflecting rising demand for sustainable solutions. Profitability was broadly stable: adjusted EBIT SEK 211m (vs SEK 208m prior year) and adjusted EBITDA SEK 482m with an EBITDA margin of 17.5% and an improved EBIT margin of 7.6%. Gross margin was pressured by an unfavorable sales mix (stronger growth outside North America), higher transportation and material costs, price pressure in certain segments (notably DVT), and weaker U.S. rental profitability. A one‑time ~SEK 10m transportation cost related to a new TMS implementation hit the quarter but should fade in Q3. The group received SEK 22m initial reimbursement related to U.S. tariffs (additional ~SEK 1m processing). Operating cash flow improved to SEK 257m and cash conversion rose to 53.3%. Net debt increased after the annual SEK 259m dividend and higher investments, leaving leverage at 2.4x net debt/adjusted EBITDA and an equity ratio of 49.5%. Management appointed five regional leaders to strengthen customer focus, product development and efficiency, and will present a detailed strategy with quantified value‑creation targets at a Capital Markets Day on 24 September. Overall: healthy demand and improved cash generation, near‑term margin headwinds from mix, transport and certain product price pressures, and an explicit focus on unlocking further value via the upcoming strategic plan.