Momentum Group AB (publ)

Welcome to the presentation of Momentum Group's Q1 report for 2026. I'm Alfre Lyseau from Momentum Group and I'm here with my colleague Niklas Edmark, Vice President and CFO and we will guide you through our report today. The business climate continues to be hesitant where our customers have a strong focus on costs and where demand is generally sluggish. Adding to this, this last quarter brought an increased anxiety coupled to the geopolitical turmoil. This was especially apparent in the first half of March when the market was quiet. Later in the month, the situation bounced back, enabling us to somewhat compensate for the tough start. In this environment, our priority is to have a strong focus on costs as well as pricing and efficiency measures to mitigate the volatility in demand and volumes. At the same time, we urge our companies to maintain high customer activities in order to be well positioned to meet the gradually improving market demand as it materializes. We also continue to make selective acquisitions in line with our strategy. I'm pleased to see that despite that tough market condition that had a relatively large negative impact on our sales volumes, we have performed fairly well in all other categories. Our gross margin is improving and our cost base is decreasing. We have also completed two acquisitions in the start of this year and we have a good pipeline going forward. I will also give you a few words of the acquisitions made in 2026. Höglandet's compressor service is a specialist in compressor technology for industrial customers and was acquired during the quarter. Actuated Solutions in the UK was acquired after the period and marks our entry in the UK market and the first acquisition outside of the Nordics. The short-term market situation remains challenging and given the prevailing geopolitical uncertainty, we expect customers to exhibit a certain level of restraint also going forward. We continue to focus on what we can influence and with the actions that have been taken, we're well positioned to meet improved demand and be the best choice when business decisions are made. We stick to our long-term ambition to reach 600 million SEC by the end of 2030. even though we could have wished for a more comfortable start of that journey. But we have several more quarters left to continue to improve. I will now summarize market and sales for the quarter. On a total level, the group reported unchanged revenue during the first quarter of the year with good contributions from acquisitions. The sales from comparable units decreased by 6% as the business climate in the group's main markets in the Nordic region remained hesitant. Improved signals from the market at the end of last year gave the way to a more cautious customer situation at the beginning of this year, where we saw focus on cost control as well as restraint in investment decisions and maintenance among our customers. The Danish market was weaker than the other countries in the Nordic region, primarily due to lower activity in product-intensive segments. Demand in other markets was more stable, although variation continued to be noted between various customer segments. The period was dominated by varied demand, geopolitical uncertainty and periodically lower activity levels among customers. Seasonal factors had a relatively significant impact during the quarter, with lower activity in plain maintenance leading to lower capacity utilization in parts of the service operation. Several group companies noted a slight improvement in demand towards the end of the period after notable lower activity level at the beginning of March, likely as a result of the geopolitical tensions. Overall demand was cautious with geopolitical tensions weighing heavily. Sales fluctuated during the period, but the slight upturn in sales took place towards the end of the quarter. Acquired operations made a positive contribution to revenue and earnings. To date this year, Momentum Group has completed two acquisitions, one of which took place after the end of the quarter, with the combined annual revenue of approximately 80 million SEK. I will now hand over to Niklas for the Q1 report, and I will return to discuss Momentum Group's outlook.

Thank you, Ulf. Now I will go through the development for business area.

Revenue for the business area industry decreased by 2% to 431 million SEK compared with the same quarter of last year. Revenue for comparable units measured in local currency and adjusted for the number of trading days decreased by 3% compared to the previous year. That's the same change that we saw in the previous quarter. EBITDA decreased by 10% to 57 million SEK corresponding to an EBITDA margin of 13.2%. The EBITDA margin thus meant a positive change compared to the 10.8% we reported in the last quarter of last year. The quarter-over-quarter improvement attributed to high gross margins, reduction in costs, and strong contributions from acquisitions. The business area's profitability measure as return on working capital amounted to 63%. Power transmission sales fell slightly with a somewhat lower EBITDA margin, but with strong gross margins. Demand bounced back to positive in the pulp and paper and mining industries, but decreased again in the automotive industry. The performance in other customer segments varied. Activity levels shifted during the quarter with a generally weak start followed by gradual improvement, but likely affected by geopolitical turmoil causing volatility in demand and sales with an overall dampening effect. Within specialists, sales and EBITDA margins declined for comparable units. The business unit noted a sluggish demand for systems and projects for the manufacturing industry in general and in Denmark. demand was markedly weaker than in the previous year, primarily due to lower activity in larger projects, as we also commented on last quarter. During the quarter, acquired operations contributed revenue of 10 million SEK with a strong contribution to earnings. Quarter over quarter, the business unit improved markedly with higher gross margins and lower costs as actions have been taken to mitigate the effect from lower sales volumes. Revenue for the business area infrastructure decreased by 4% to 360 million SEK compared to the same quarter of last year. Traditionally, Q1 is a quarter below revenue, which is then due to the structure of the businesses involved in this business area. Revenue for comparable units measured in local currency and adjusted for the number of trading days decreased by 9% compared to the previous year. That's the worst performance than in the previous quarter. Besides a generally cautious market likely affected by the EU political situation in the business area, we also saw more pronounced seasonal effects, partly caused by company mix effects, but also partly by harsh weather conditions affecting the service businesses within the area. EBITDA decreased by 4% to SEK 22 million, corresponding to an EBITDA margin of 7.0%. Improvements were seen in both gross margins and reduced costs compared to the corresponding period of last year, which was then not fully able to compensate for relatively large drop in sales for comparable companies. All in all, acquisitions gave a slight positive contribution to earnings. The business area's profitability measured as return on working capital amounted to 62%. With inflow technology, sales for comparable units declined slightly, but with increasing earnings, especially due to strong gross margins. Demand was impacted by a more cautious market, especially affecting the inflow of projects. The product sales trend was positive in Sweden, but significantly weaker in Denmark. service utilization was somewhat lower during the quarter. During the quarter, acquired operations contributed revenue of 29 million SEK with a strong contribution to earnings. Within technical solutions, sales and earnings for comparable units declined. The performance was impacted by lower capacity utilization in parts of the services operation, driven by the seasonal effects and also customer restraints. The measurement and control operations reported improved earnings despite lower sales volumes. Acquired operations contributed revenue of 12 million SEK unit quarter, which was characterized by low activity levels resulting in a negative earnings contribution.