Slides
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DISCOVERING THE NEXT SOLUTION Q3 REPORT
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DC IRON Q3 highlights DISCOVERING THE NEXT SOLUTION Q3 REPORT Erik Lundén President & CEO
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• Continued execution on our strategy with a strong focus on value creation for our customers • Total growth of 16.6%, with strong organic growth of 6.5% • Increased market shares and somewhat stronger underlying demand • Gross margin up by 1.6 pp, reaching record-high 34.3% • Adj. operating margin, reaching record-high 15.6% (14.2) • Almost all companies delivered improved results, especially in Europe West and Asia-Pacific • Positive development of DC Iron during the quarter DISCOVERING THE NEXT SOLUTION Q2 REPORT 239 272 349 0 5 10 15 20 25 30 35 40 0 50 100 150 200 250 300 350 400 12.7% Q3 2024 Q4 Q1 Q2 14.2% Q3 2025 Q4 Q1 Q2 15.6% Q3 2026 EBITA, Adj EBITA, Adj % 0 10 20 30 40 50 0 500 1,000 1,500 2,000 2,500 30.6% Q3 2024 Q4 Q1 Q2 32.7% Q3 2025 Q4 Q1 Q2 34.3% Q3 2026 1,880 1,917 2,236 Net Sales, MSEK GP % Q3 highlights – strong organic growth and record margins
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Financial highlights DISCOVERING THE NEXT SOLUTION Q3 REPORT DC IRON Marcus Söderberg CFO
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Net sales by quarter Growth development in the quarter DISCOVERING THE NEXT SOLUTION Q3 REPORT 1,950 2,000 2,050 2,100 2,150 2,200 2,250 1,800 0 50 100 1,850 1,900 9.5% Acquisitions Q3-26Q3-25 6.5% Organic 0.7% 1,917 2,236 Currency Strong organic growth, driven by increased market shares and improved underlying demand 500 1,000 1,500 2,000 2,500 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 0 Q3-25 0.3% Q4-25 2.2% Q1-26 5.3% Q2-26 6.5% Q3-26 1,917 1,931 2,222 2,265 2,236 1.4% Net Sales, MSEK Organic growth, %
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Gross Profit Margin 0.0 35.0 33.0 0.5 1.0 31.5 32.0 32.5 33.5 34.0 34.5 34.3% 33.2% Q2-26Q1-26 32.9% 33.8% Q4-25Q3-25 32.7% Q3-26 DISCOVERING THE NEXT SOLUTION Q3 REPORT Strong gross margin momentum and continued cost control Gross Profit, % 363 419 391 419 405 0 5 10 15 20 25 30 0 100 200 300 400 500 18.9% Q3-25 21.7% Q4-25 17.6% Q1-26 18.5% Q2-26 18.1% Q3-26 Opex Opex, % Opex & Opex in percent of Net Sales
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DISCOVERING THE NEXT SOLUTION Q3 REPORT • Strong topline, increased gross margin in combination with good cost control led to a clear improvement in the adj. operating margin to 15.6% (14.2). • Adjusted operating profit increased 28,2% to 349 SEK million (272). • Four of five regions improved margins. Record-high operating margin 272 252 340 333 349 9 12 15 18 50 100 150 200 250 300 350 400 14.2% Q3-25 13.1% Q4-25 15.3% Q1-26 14.7% Q2-26 15.6% Q3-26 EBITA, Adj MSEK EBITA, Adj % EBITA adjusted and EBITA margin adjusted
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Cash flow from operating activities, MSEK Cash flow from operating activities, MSEK 337 37097 8 Operating Profit Non Cash items -71 Interest & Paid Taxes Change NWC Cash Flow from operating activities 293 224 201 305 370 0 50 100 150 200 250 300 350 400 450 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 DISCOVERING THE NEXT SOLUTION Q3 REPORT Higher cash flow, mainly explained by improved results
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Net Debt, MSEK Adjusted Net Debt/EBITDA 597 617 622 632 658 2,330 Q3-25 2,815 Q4-25 2,721 Q1-26 2,859 Q2-26 2,785 Q3-26 Net Fin debt Leasing 2,927 3,432 3,343 3,491 3,444 Q3- 2024 Q4-24 Q1-25 Q2- 2025 Q3-25 Q4-25 Q1-26 Q2- 2026 Q3- 2026 2.4 2.8 2.5 2.5 2.3 2.6 2.4 2.4 2.2 DISCOVERING THE NEXT SOLUTION Q3 REPORT Net Debt/EBITDA improved to 2.2
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Regional highlights Erik Lundén President & CEO DISCOVERING THE NEXT SOLUTION Q3 REPORT DC IRON
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• Total growth was 3.2%, of which organic growth was 3.0% • Strong demand in defence, digital infrastructure and electrification while demand remained weak demand in construction and furniture • Gross margin up 1.9 pp driven by customer and product mix as well as value-based selling • Cost level up mainly due to foreign exchange losses on operating receivables and somewhat higher costs for inventory obsolescence and investments in growth • Ad. operating margin improved to 15.6% (14.6) Region Europe North & East DISCOVERING THE NEXT SOLUTION Q3 REPORT 668 654 675 0 10 20 30 40 50 0 200 400 600 800 1,000 29.4% Q3 2024 Q4 Q1 Q2 33.3% Q3 2025 Q4 Q1 Q2 35.2% Q2 2026 Net Sales, MSEK GP% 95 96 105 0 5 10 15 20 25 0 50 100 150 14.2% Q3 2024 Q4 Q1 Q2 14.6% Q3 2025 Q4 Q1 Q2 15.6% Q3 2026 EBITA Adj, MSEK EBITA, Adj %
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• Total growth was 39.0%, of which 25.2% was acquisitions and 14.2% was organic growth • Strong demand in mechatronics, aerospace electricity and defence • Strong Gross margin, up 2.4 pp, driven by an improved product mix and added value on new projects • Cost level down due to strong operational leverage • Adj. operating margin improved to 15.4% (12.7) • Stable development of novia Group Region Europe West DISCOVERING THE NEXT SOLUTION Q 3 REPORT 443 533 741 0 5 10 15 20 25 30 35 40 45 0 150 300 450 600 750 900 25.6% Q3 2024 Q4 Q1 Q2 25.9% Q3 2025 Q4 Q1 Q2 28.3% Q3 2026 Net Sales, MSEK GP% 61 68 114 0 5 10 15 20 25 30 0 15 30 45 60 75 90 105 120 135 13.7% Q3 2024 Q4 Q1 Q2 12.7% Q3 2025 Q4 Q1 Q2 15.4% Q3 2026 EBITA Adj, MSEK EBITA, Adj %
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Region Americas DISCOVERING THE NEXT SOLUTION Q3 REPORT • Total growth was -6.6%, of which organic growth was -8.0% • The negative organic growth was due to refunds of previously paid customs duties, lower demand in the RV and automotive markets, and a strong comparative quarter • Gross margin up 3.4 pp driven by price adjustments and a successful development within CSG • Somewhat higher cost level due to the negative organic growth and somewhat higher obsolescence costs • Adj. operating margin was 20.8% (22.2) 248 257 240 0 10 20 30 40 50 60 70 80 0 100 200 300 400 35.2% Q3 2024 Q4 Q1 Q2 41.4% Q3 2025 Q4 Q1 Q2 44.8% Q3 2026 Net Sales, MSEK GP% 31 57 50 0 4 8 12 16 20 24 28 32 0 10 20 30 40 50 60 12.5% Q3 2024 Q4 Q1 Q2 22.2% Q3 2025 Q4 Q1 Q2 20.8% Q3 2026 EBITA Adj, MSEK EBITA, Adj %
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Region UK & Ireland DISCOVERING THE NEXT SOLUTION Q3 REPORT • Total growth was 20.2% of which 13.4% was the acquisition of D.C. Iron and organic growth was 5.4% • TIMCO delivered robust sales despite weak construction, while higher stainless steel prices supported a slight improvement at Apex Stainless Fasteners • Gross margin up 2.4 pp, mainly driven by a better customer and product mix, rising prices of stainless steel and the acquisition of D.C. Iron • Higher cost level due to transaction costs related to D.C. Iron • Adj. operating margin improved to 13.8% (10.7) 409 370 444 0 10 20 30 40 50 0 100 200 300 400 500 33.1% Q3 2024 Q4 Q1 Q2 33.3% Q3 2025 Q4 Q1 Q2 35.7% Q3 2026 Net Sales, MSEK GP% 51 40 61 0 4 8 12 16 20 0 10 20 30 40 50 60 70 80 12.5% Q3 2024 Q4 Q1 Q2 10.7% Q3 2025 Q4 Q1 Q2 13.8% Q3 2026 EBITA Adj, MSEK EBITA, Adj %
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Region Asia-Pacific DISCOVERING THE NEXT SOLUTION Q3 REPORT • Total growth amounted to 32.0%, of which organic growth was 28.4%. • Strong growth within energy and industrial automation solutions impacting especially Bufab Shanghai and Bufab India • Gross margin up 6.0 pp due to active work with value-based pricing, improved customer and product mix and purchasing savings • Lower cost level mainly due to the higher volumes and a good cost control • A solid development on all levels led to an adj. operating margin of 21.1% (14.3) 110 102 135 0 10 20 30 40 50 0 30 60 90 120 150 30.6% Q3 2024 Q4 Q1 Q2 31.4% Q3 2025 Q4 Q1 Q2 37.4% Q3 2026 Net Sales, MSEK GP% 10 15 28 0 2 4 6 8 10 12 14 16 18 20 22 0 5 10 15 20 25 30 35 9.0% Q3 2024 Q4 Q1 Q2 14.3% Q3 2025 Q4 Q1 Q2 21.1% Q3 2026 EBITA Adj, MSEK EBITA, Adj %
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Customer case: Growing our partnership with Knorr-Bremse KNORR-BREMSE & THEIR NEEDS • Global braking systems leader • Simplifying a complex C-Part supply chain HOW BUFAB CREATES VALUE • One partner from sourcing to logistics • Tailored solutions reducing complexity and cost FURTHER VALUE CREATION & GROWTH • Strategic global partner across 30 production sites • Significant potential in new commodities & sites
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Group news DISCOVERING THE NEXT SOLUTION Q3 REPORT Erik Lundén President & CEO DC IRON
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Summary, outlook & priorities DISCOVERING THE NEXT SOLUTION Q3 REPORT Strong quarter with organic growth of 6.5% and record-high gross and operating margins Despite geopolitical uncertainty, we experienced slight improvement in market conditions Somewhat higher purchase prices from Asia We remain optimistic about the future – focus on things within our control 1) Continue securing new business and taking market shares 2) Improve our margins - focused work on strengthening our gross margin and on cost savings 3) Continue to improve our NWC and secure strong cash flow Continue our value journey, improving our customer and product mix and implement more value-based pricing Strong momentum for the future DC IRON
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DISCOVERING THE NEXT SOLUTION Q3 REPORT Welcome to Bufab’s Capital Markets Day on December 10, 2026, in Stockholm. Hotel Miss Clara by Nobis Register by e-mail: sofie.unnersjo@bufab.com
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DISCOVERING THE NEXT SOLUTION Q3 REPORT Q&A DC IRON