Welcome to Lagercrantz Group Q1 Report 2026/2027. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. I will hand the conference over to President and CEO Jörgen Wigh and CFO Karin Mellegård Djärf. Please go ahead. Yes, thank you. Good morning, everyone, and welcome to our interim report for the Q1. As you know, we are starting our year 1 April 2026, so this is the quarter ending at April through June then. Welcome everyone. A bit puzzled around the reaction here this morning. We thought we posted a strong quarter, well in line where we have been before or even a bit slightly stronger with some earnings per share growth of 20% and some six M&A deals over the last quarter, which is more than we've done before. We will get into that as we move along here. Together with me here, I have Karin with us as well, our new CFO since a few months ago. We will go over the presentation in three chapters or parts where we will start with a short introduction to Lagercrantz Group for those that are new to us. We would jump right into the quarterly report, and we will end up with some comments on where we are with the group going forward. Welcome, everyone. I will start with an introduction to Lagercrantz Group then. You've seen this many times. We are a tech group building through M&A and development of the companies that we have, building leading positions in expansive niches. You could see over to the right where we have most of our companies. It's Northern Europe that we cover now. We also have some really export-related businesses. All the way to the right, you can also see where we have some footholds all around over the world with some in North America, with some in Asia as well. We have our scope where we would like to work is the B2B tech or B2B industrials where we offer value-creating technology in expansive niches. We have organized ourselves into these five divisions that you can see, and we will comment on how the developments are in these divisions as we move along. We are very keen on working in decentralized fashion, so we have all our companies organized individually under their own brand name in their own market, addressing their own market and customers. You can see where we have our profit units or companies, as we will call them here, with 17 companies in Electrify, 17 in Control, 15 in TecSec, 21 in Niche Products, and 16 in International. We have just surpassed SEK 11 billion. It was not long ago since we went above SEK 10 billion, now we also with this quarter surpassed SEK 11 billion in sales or total revenues for the group. We have about 3,800 employees as of today. As you all know, we are a buy and build, or we are a serial acquirer, acquiring companies. Acquisitions is a very central part of our business model. We expect two-thirds of our growth to come through M&A over the years, that is where we were also this quarter. We were part of the Bergman & Beving Group up until 2001, when we were split out and have been listed as a separate unit, a separate entity since 2001. That is a bit of a background. Let us move into the quarterly report or the interim report. Here we can see that we posted another strong quarter, we think, in terms of growth. We are well on the way towards the SEK 2 billion goal. You can see that the trajectory has been very strong over the last three, five years here. We continue that with another strong quarter. You can see that the scales left to right here are proportional, meaning that you could also see that we have a strong growth also in terms of margins over the years. We have continued that also here in the last quarter. We will get into the numbers in a while here, in just a bit. We also believe that we saw some improvements in terms of the business conditions during the quarter. On the aggregated level, we have a lot of different segments, so it varies between the segments. On an aggregated level, we have seen a continued positively stable activities during the quarter, especially in the sectors where we are strong in terms of electrification, infrastructure, security and defense, also within marine and also some of the clusters that we are building within Niche Products have had a good development during the quarter and along the way here, where we also see some uptick in the order intake, as you can see here. While we still feel that the demand in the construction sector have remained sluggish, that is the sector lagging behind, even though we have seen some slight improvements also there, but from a very low level and small ones. The order intake was very strong. We have posted some 6% or 5% or so in the last couple of quarters. Here during this quarter, the order intake was 10% higher than the invoice sales. When sales are growing like it is, it is actually a very good number compared to previously. We also saw that some of these orders that came in were more project-related orders with longer lead times. Those are around different types of sectors, construction, infrastructure projects with some lead times of 6-18 months or so. Still good that those project orders are happening, which is also, I think, a sign that we see some improvements in the market and in the general business climate. Gross margins remain stable, but we also saw some strong signs of cost inflation driven by higher raw materials and freight prices. Therefore, we are working also with compensation through price increases to customers in many of our companies. That, I think we learned over the years, and especially during the pandemic, where we've got used to really drive things through price increases and price adjustments as we see raw material prices and freight prices really change. I think we have learned that over the years. I think we're pretty good at it, but now we're in a phase where we need to push that a little bit more even. We can also see that during the quarter here, we continued our good growth in terms of proprietary products. We're currently at the 80%, and we also see over the years that we are becoming more and more international over the years. You can see that Sweden is growing, but as part of the total group, the net revenues are currently at some 30%. Denmark is our second biggest market, and we have also been quite acquisitive and active in the U.K., and therefore that is currently our third biggest market in the same level as Norway, but still at the 9%. It used to be much smaller. We are growing and becoming more international over the years. I think we're going to move right into the numbers, and I'll handle with you, Karin, to describe a little bit what happened during the quarter in terms of figures. Good. Thank you. As Jörgen already mentioned, we believe that we started our financial year with a really strong first quarter. As you can see, our revenues increased by some 18%, with acquisitions contributing with 12% and the organic growth reached 6%. This is the same level as in quarter four. We had no currency impact in this quarter. EBITA increased by 15% and landed at SEK 498 million, and the EBITA margin ended up at 7.1% compared to 7.5% last year. The cash flow from operation was more or less in line with prior year and was relatively strong and ended up at SEK 279. Profit after financial items, EBT, increased with 18% to SEK 405 million, and profit after tax improved with some 20%. Earnings per share in the quarter improved with 20% and increased to SEK 1.53 per share. Rolling 12 months, we reached SEK 6.07 per share. As we have communicated earlier, the board proposes a dividend of SEK 2.50 per share. During the quarter, we have completed six acquisitions with approximately SEK 400 million in annual sales. Jörgen will talk more about these acquisitions later, but they are divided both between divisions and countries. Yeah. Good. Then just very briefly on the outcome by divisions. If we take a look at the outcome per division in the first quarter, we can note that the strongest divisions are Electrify and Niche Products. Both continues to grow and maintain an EBITA margin over 20% for another quarter. TecSec has improved the EBITA margin compared with prior quarters, International is in the quarter impacted by seasonality into two newly acquired companies that will be mentioned later. Control is not on the level that we would like them to be, but Jörgen, you will tell us more about the divisions now. I think it's worth mentioning when we have these numbers in front of us that you see the International division. We have also had some seasonality to the business, we have commented on that earlier, you can see that here. There is some sales been added in the International compared to last year, you can see that the volumes are significantly lower than they were here during the wintertime. We have the Friggeråkers and Epoke that is affecting the numbers in a negative way here in terms of how the quarter came out. They have a strong tendency towards the fall and the winter with a very slow season here during the summer, which we have commented on. That's, of course, affecting the International numbers here, which we have communicated earlier to you guys. A little bit more on what happened in each of the divisions. While we had some segments that were really strong for us during the quarter, especially the Electrify and the electrification and infrastructure that they have their business related to. Here, revenues were up some 13%, acquisitions were 3%, organic is some 10% growth. Here we see some good organic growth in this. EBITDA was up 25% at SEK 253 million, the EBITDA margin was, for another quarter then, about the 20%, which is the target. 20.1% as opposed to 18.3% last year. Here we saw some broad-based positive organic development in these companies. Many of them performed very well, particularly so for the company Mastsystem in Finland, Nordic Road Safety, Elfac, and Elpress, four major companies within the division that had all posted good numbers and good development during the quarter. Here we also concluded one acquisition during the quarter, which is the Michael Smith Switchgear in the U.K., a leading provider, which I'll come back to, of low-voltage switchgear solutions. I'll describe the company a little bit later here during the presentation. A really good add-on straight into where we would like to be in the segments with what they're offering, and also where Electrify is being set up in the U.K. They haven't been there before in that division. The Control division increased their revenues by 14%, but most of that came from acquisitions, and the acquisitions have been landing very well. We also have had some companies that have been lagging behind, so organically was only 2%. The EBITA stood still then at SEK 51 million, and the EBITA margin fell slightly then to 14%. Some companies still are doing it very well in the division. Direct Unique, Radonova, and SD Egbers showed good improvements. While other, especially smaller businesses related to the construction sector, which we have been discussing before, the 1P companies, especially in Norway, a couple of smaller companies have been struggling. Therefore, we are also taking some measures during the quarter here, which has also added some one-offs in terms of cost here during the quarter. Also we had the Precimeter, which has been performing very well for us over the years, reported a weaker quarter, and that is behind the somewhat disappointment in terms of EBITA here in this division. The newly acquired Danish company, Hycon, which I will also introduce later on, made a strong start within the division. Good two acquisitions and a good development and also dealing with some of the low performers in the division during the quarter here, which adds up to these numbers. In the TecSec division had a positive development during the quarter. Revenues were up some 28%, acquisition was 17% on organic to 12%. Really good growth from both acquisitions and organically within the division. The EBITA was up 20% to SEK 101 million, as opposed to SEK 84 last year, and the EBITA margin at 15.1%. Several of the division security business delivered improvements in a continuous sluggish market environment. We are still dealing with that, but somewhat better here, especially Idesco in Finland and ISG Nordic, CW Lundberg, and Arcon had good performance during the quarter. Others struggle a little bit more, PCP in Denmark and Northern Europe with their gratings struggled and also some construction-related U.K. businesses with especially a couple of the door companies, door and joiner and principal door sales did not live up to last year's performance. On the other hand, we had the I Holland acquisition that was acquired in November, reported a strong result during the quarter. That is a significant acquisition for TecSec and for Lagercrantz, and they've had a really good start. That is also bringing us to a new segment with MedTech businesses, and that has been very promising for us. I Holland we're very keen on. During the quarter, we also landed another one, a second one within the MedTech segment, which is the Marsden acquisition, which has also come back too with some weighing solutions and weighing scales for NHS and other customers especially in the U.K. The fourth division is then the Niche Products posted their revenues up with 16%. Most of that come through acquisitions, the 15%. Organically was a bit slow. They're still struggling a bit with the companies related to the U.S. but maybe less so than before. EBITDA was up 21% to SEK 137 million, and the EBITDA margin improved slightly to almost 21%, which is a really good number for Lagercrantz and for the companies that we have and where the normal Niche Products usually are. Posted a stable quarter with good profitability in several of the businesses, especially Truxor, Wapro, and Thermod delivered clear improvements in earnings compared to last year. While we saw some weaker organic growth, especially in the more U.S. related businesses, the ASEPT and the Tormek, which are really important and still are on a good level, but not living up to last year's very strong performance. The more recently acquired Sit Right and Enskede Hydraul had a good start within Lagercrantz. Here we concluded two acquisitions during the quarter, Nivex Topsafe and Stalon, and both of them had a good start within the group. I'll come back to those as well. Last but not least is the International division. Revenues there were up with 16%. Acquisitions stood for 13%, organically 3%, the EBITDA was down then to SEK 66 million Mostly down due to this seasonality effect that I already described. The market situation was stable overall, and the division delivered a quarter with a solid growth across many of its businesses, and especially the marine businesses, the Libra in Norway and Tebul in Finland, as well as also the companies that have been strong performing for us before is the DP Seals and also G9, a fairly small company, but still doing it really well for us in Denmark in the last year or so. We have a new management team on board there, and they're doing a great job with that company. The seasonality effects are the big factors here due to why the EBITDA was down. That since we included them, their P&L first consolidated in July 2025, so we didn't have them last year this quarter. That means that they're coming in with some losses really, and that means that is affecting the EBITDA for the whole division. That's comments by division. By that, I think we should look ahead. I think that we should come back to our vision and financial goals. We continue building our group with all these really nice niche-oriented businesses. I think this quarter was no exception, a strong growth. We also have been talking about that we should grow EBT long term by more than 15%. I think the EBT grew by 18% now. During the quarter, the earnings per share was up 20%. It's actually been growing faster than our long-term goal. We also talked about that at least one-third of that should come organically and the rest through eight to 12 acquisitions per year. That's where we've been also this quarter. We concluded some six acquisitions during the quarter, and the split between organic and inorganic was exactly one-third organic and two-thirds inorganic. That also meets those targets and what we expect. Return on equity should be at least at 25%. If I remember correctly, I think the figure was 29% now. It's been really good in terms of also return on equity. We're continuing building our five divisions. I think that we have five really strong divisions that we've seen, it's good to see that they're growing and taking on over responsibilities, really driving like they were an individual Lagercrantz, all of them, becoming really sort of important both in terms of developing the companies that we have, but also adding some two to three acquisitions per division per year, which adds up to the number that we expect from the total group then. I think we have also very well-positioned companies. We are within safety technology, we are within electrification and infrastructure, we are within defense. I also see that the slight pickup in the market will be good for us as we move along here. We are like to build these divisions in attractive segments with underlying structural growth, which has been the theme that we've been talking about for some time now. We will also continue with our strategic ambition of driving the proprietary products to the 85%. We said that we will do that within five years. We are on that sort of level of improvement or gradually changing it. We are currently at 80% halfway, from the 75 we used to be. We are well on the way with also delivering on the 85% proprietary products. Looking a little bit at the acquisitions, that is really important. That is two-thirds of our growth should come from acquisitions. We have now, I said eight to 12 companies per year or acquisitions per year. Currently, we have a pace of 14 since April 2025, adding some SEK 1.5 billion in annual business volume, which is more than the-- since we have SEK 11 billion now in total, it's more than 10% that we expect. It's on a good level. I think what we've seen, we've seen a good M&A market over the last year, we continue to see a good market. Here during the quarter, we posted some six acquisitions here. You can see them down there to the right. Since 2025 there, April, it's been 14 acquisitions. A really good sort of level. I think we're up and running in terms of how the divisions are working with this and really closing more deals along the way and really drive things through M&A as well. As you know, we try to illustrate what type of companies we are acquiring by having these type of fact sheets on all of them, I'll just flip through a few of them. During the quarter, we acquired Michael Smith Switchgear. It is a U.K. company with the manufacturing of bespoke low-voltage switchgear and electrical distribution assemblies, headquartered in Leicester. A really good company, used to be family-owned, and we are working together with the management team and the family there going forward as well. Looks very promising in a sector where we really would like to be. This is then for the Electrify, a very important step into the U.K. market. This is the Electrify's first U.K. acquisition, which is also an achievement. Within the Control division, we acquired Hycon, which is a Danish company based in Støvring in Denmark, which is a leading supplier of high-performance hydraulic tools and power packs for cutting, drilling, and pumping in harsh environments. You can see from the picture there, in subsea, for instance, you need to use hydraulic as opposed to electrical sort of tools, and that is where Hycon is positioned. You can see a good development and also some high EBITA margins down to the right there expected of that company. Really a traditional good company with proprietary products in the Nordics, which I think will be a good add-on then within the Control division. Within the Niche Products division, we acquired Nivex Topsafe, which will be a standalone business, but it is related also to the Profsafe that we already own within this sector, within this segment. With safe storage products and other types of cabinets, fire cabinets, and safe rooms that they are providing for especially the Nordic market. With also some good developments and some stable and good developments that you can see there. In terms of purchasing, in terms of manufacturing, we are also looking into some synergies there together with the Profsafe business that we already own, which is of the same size as this one. Building a bit of a cluster here and strong market position with these two companies under the same owner. Another company we acquired within the Niche Products division is the Stalon business, which is a manufacturer of silencers for hunting firearms. Another proprietary product type company, and you can see down there that it is not that big, but it is having really good numbers in terms of EBITA and EBITA margin. It will be a good add-on for the Niche Products division going forward, will be a standalone business. Last but not least, I will introduce the Marsden business, which is another U.K. business. We talked about TecSec getting into the MedTech business as well with the I Holland acquisition here of last November. This is the second one coming into the Marsden business. This is smaller than the I Holland, but still on a very good level in terms of EBITA and EBITA margin. A very appreciated supplier of a trusted company, delivering to NHS and other sort of public type character of buyers or customers, and doing it really well over many years. They have been around for more than 100 years, and we can come in as a good next owner of this type of company. A good example of how we would like to work with things. To round off this, here we have the financial overview. As said, I think we think that we posted a very strong and just a quarter adding to what we have done before. We see that we had some good organic growth, 6% in the quarter, and also a book-to-bill of more than 1.1, which is really good. On top of that strong growth in sales, we increased our earnings per share by 20%. Here it says 18%, which is on an annual base, but in the quarter it was actually 20%. We concluded some six M&A deals, which is more than we have done in any quarter, I think, before. Also entering some new sectors with the MedTech along the way as well. I think we are in a very good position and looking forward to the future. Given what's happening geopolitically, we would like to be a bit careful what we say going forward. As of now, it looks good for the future. With that, I think we'll round off and open up for questions. If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Zino Engdalen Ricciuti from Handelsbanken. Please go ahead. Yes. Good day, Jörgen and Karin. Thanks for taking our questions. First one on the International segment. We seem to not have captured the full seasonality in our estimates, but I'm wondering if we put the Epoke and Friggeråkers aside, is it possible to elaborate on how the margin developed year-over-year? Year-over-year, there was a slight improvement in margins. The Friggeråkers and Epoke effect is significant. Yes, it is. Very clear. Regarding your outlook comments in the report, I think you've written for a while now that you're being cautiously optimistic and now you are entering the future with confidence is how you're wording it. Would you say that this increase in confidence, is it due to now having seen organic growth for a while now, or is it something in the quarter that has made you more confident? I think we've seen a gradual improvement over the last couple of two, three quarters, but that has materialized even further and been slightly even stronger here during the quarter, which we indicate by saying that the book-to-bill was 1.1 in the quarter or about slightly more than that. Which is strong. Talked about 6%, I think, before, so now 10%, and that is giving us some increased confidence. Yes. Very clear. Just the last question from me, the higher cost inflation that you're seeing, you have a track record of handling that. I'm wondering if there's any mismatch in the quarter we see now between cost and price. I think that we have some growth, and you could see that the gross margin on a group level is about the same as it has been. I don't think there is a significant mismatch. When I look down in certain companies, we could see that we need to push pricing even further to get fully where we would like to be. We also see some cost inflation in terms of our own overhead and things like that, and that we also need to be very careful with as we move along. Not significant, but still some things to work with there. Very clear. Thank you. I'll get back in line. The next question comes from Johan Lönnqvist Sundén from DNB Carnegie. Please go ahead. Hey, Jörgen and Karin. Thank you for taking my questions. Actually, a couple of questions that touch upon what Zino just asked about. Is it possible to get some kind of quantitative figures on the quarter-over-quarter step down in EBITA due to Epoke and Friggeråkers? I don't think it's fair to communicate that here. We should do that in another fashion then, or communicate that with a press release and stuff like that. As said, and we have talked about it ever since our last quarterly report, right? We have talked about it. It is a significant effect. Yes, it is. Just try to get some more color there. Second one is also on cost side. Note that the admin cost in the P&L is ticking up quite a bit here in Q1 versus Q4. What is happening there? Is there anything worth flagging why admin cost is coming up, say, SEK 30 million quarter-over-quarter? I don't think there is something worth flagging for now. There are always some sort of one-offs or things like that we need to address in every quarter. It will go up and down, but it's not like it's a structural change or anything. I don't know, Karin, if you have some color to that. I agree what you say. You need to have a look at the more rolling 12 thing here, it's nothing particular. Fair enough. On Electrify, just curious to hear your thoughts about pipeline coming quarters regarding specific kind of project deliveries that we should be aware of. If there's delays or big projects that ought to be delivered. I think we have a few of those in all divisions. I'm not sure it's more related to, we have the Mastsystem business, as most of you are aware of. It's project related, and they have built and gained some new orders as well along the way. I think that business is picking up and becoming slightly less project-oriented along the way. Besides that, I don't think there is something specific within the Electrify. There are a couple of other divisions. Within the Control, we gained some orders, and also within the Niche Products division, and also with International. We have some project-related business that's come in during the quarter that have slightly longer lead times, as we said. The final. That's behind the growth. That's how we explain the sort of extraordinary growth that we had during the quarter, which is a good thing. It's a positive. Yeah, for sure. My final question is on the balance sheet, looking at inventories coming up a little bit here. Anything special there worth flagging, mentioning why inventories is coming up? No, I think what you see there is actually some of the seasonality that I talked about that we see for NRS business, for instance, within the Electrify division. That have some seasonality also when it comes to stock, and that also goes for the Epoke and Friggeråkers business that we have within the International division. They're now preparing and building and working quite hard to put together products to be sold here in the next couple of quarters. Therefore, we will have some increased seasonality when it comes to both sort of working capital buildup, but also when it comes to cash flows, where it will be slightly stronger during the fall and winter as opposed to the summer. Just one final, if I may. It is on the gross margins that also was down a little bit year-over-year. How much is it possible to give some kind of divide that into mix effect regarding the Friggeråkers and Epoke, and potential kind of squeeze from raw material inflation, etcetera? That is really hard to calculate for ourselves, so it's more of a gut feel. I think most of it is volume, but still some of it is price related. We had an organic growth of 12% during the quarter, right? No, sorry, 6%. I think most of that is volume, but still some of it is price as well. Two and a half and three and a half or so maybe. That's a rough estimate from my side because we can't calculate that with all the different businesses that we have, with all the different products that we have. It's a lot of mix effects as well that goes in there. The feeling is that you're keeping up with the cost inflation, with your pricing and try to continue? Yeah. We also highlighting that we need to do a little bit more to be totally satisfied. Yes. Perfect. That's what happening. When we see cost inflation and freight prices and raw material prices pick up, then it takes a while before we need to adjust and we need to communicate with our customers, and we need to sort of get it through. It usually takes three to six months or so before we are through with that. That's clear. Thanks a lot. I'll get back in line. Yeah. Thank you. As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad. The next question comes from Patrik Schwartz from Pareto Securities. Please go ahead. Hello. I think most of my questions have already been answered, but I have two left, actually. The first one is on the order intake here. Previous quarters you have communicated how the growth was in order intake organically, but I think in this quarter you just reported book-to-bill. I might have missed it, of course, but is this a change in what data you report, and can you comment on the organic order intake in the quarter? As we are indicating with what we are communicating, it's slightly better than this quarter than it was last quarter. It's moving in the right direction. Okay. given the. What we communicated is the book-to-bill. It's been more than 1.1. Yeah. As already said, given that we had good organic growth in the sales figure, the order intake was really very good this quarter. All right. That's great. Then on the second question, which is acquisition related. Since you closed quite a lot of acquisitions here during the last six months, I believe. How is your pipeline going forward? Have you closed several of the acquisition you're planning on completing this year? How are the prospects? I think we are working on, if you'd like to call it all five cylinders with all our five divisions, are working quite intensely with finding new acquisitions. You shouldn't expect a slowdown or anything. I think we have a good pipeline and yes, we have concluded some of the deals. I think that what we have seen in the last six deals that I already presented is that they are all more of a typical sort of size and typical kind of the acquisitions that we made over many years. I think what we did before that was also closing some deals, those were slightly bigger. I think we will continue to look for bigger deals and smaller deals, we expect to close at least 10% in terms of adding 10% of additional sales with good volume and a good margin and good profitability into the group every year. That we have now communicated that we are above that target both this year and last year. It's actually looking very good. Okay, thank you. Actually, one final question, on Friggeråkers and Epoke here in International. If I remember correctly, their seasonal downturn is always during the summer months where it's quite warm. Is it fair to assume that next quarter will be equally soft for those two companies, after which it will accelerate seasonally in your third quarter? Yeah. To some extent that's true. Some of the orders are shipped already within the quarter that we have ahead of us. They are Q2 before the end of September, but most will happen between October and December. They're delivering these salt spreaders and sort of equipment for road or snow treatment on roads. Of course, that is related to the winter. You can't buy one and expect it next week, you need to place your orders early in order to get it for the next season. That's how the business works. It will be something here during Q2, but most of it will happen in Q3 and Q4. Q3 is more related to additional new sales, Q4 is usually related to more spare parts and things like that when things sort of, depending on how the winter turns out. That's fine. Thank you. I'll get back in line. Thank you. There are no more questions at this time, I hand the conference back to the speakers for any written questions and closing comments. Thank you everyone for listening in. I thank you. We will be available here, both me and Karin for some time. If you would like to call us and have additional questions, feel free to. Otherwise, I wish for everyone to have a few weeks of summer holiday and then we'll get back to you soon. Keep up the good work and thank you very much for listening in.