Karnell lifts sales 33% to 580 million kronor as EBITA grows 73%

Key Facts

Karnell Group said net sales rose about 33% in the third quarter of 2026 to about 580 million Swedish kronor, compared with 436 million in the same period last year. The group said EBITA increased about 73% to about 120 million kronor, from 69 million a year earlier. The figures show growth in sales and operating profitability, not net profit, as the latest statement did not describe net earnings as record-high. The company said the figures were preliminary and had not been reviewed by its auditor. Karnell published the preliminary results on October 12, ahead of the release of its interim report for January to September.

A breakdown of sales growth shows that expansion did not come from acquisitions alone: organic growth was about 19%, while acquired companies contributed about 15%, and currency effects were small. Karnell links organic growth to strong demand and a higher pace of deliveries at several group companies. It said strong performance spanned both of its business areas, reflecting a broad-based improvement across its operating portfolio. These components put organic growth at the forefront of sales gains, alongside a meaningful contribution from expansion through acquisitions. The statement did not detail each company's contribution to the total increase.

EBITA grew faster than sales, rising about 73% to about 120 million kronor from 69 million in the third quarter of 2025. Organic EBITA growth was about 43%, while acquisitions contributed about 31%, according to the company’s breakdown. The EBITA margin also rose to slightly more than 20%, compared with 15.9% a year earlier. The wider margin shows that operating profitability improved faster than revenue during the period. But these indicators remain preliminary and do not constitute a final statement on net profit or an auditor’s review.

The group said the elevated demand that continued during the quarter at one of its specialist companies was still, in its view, temporary in nature. The caveat limits any reading of the increase in demand as a lasting trend in that business, despite its continuation during the period. By contrast, the company attributed broader organic growth to strong demand and faster deliveries at several of its companies, and said performance spanned both business areas. The group comprises 20 companies in Sweden, Finland, the United Kingdom and Italy, and is listed on Nasdaq Stockholm. This footprint provides context on the group’s reach, without the statement specifying each market’s or business’s contribution to the quarter’s results.

Second-quarter results provide context for comparison during the year: sales then rose 35.6% to 584.5 million kronor, with organic growth of 17.4%. Second-quarter EBITA increased 59% to 100 million kronor, with a margin of 17.1%. In the first half, sales rose 31.8% to 1,041.9 million kronor, and EBITA increased 64.3% to 166.4 million, while the margin was 16% versus 12.8% in the first half of 2025. Third-quarter sales were therefore below the second-quarter level, while the preliminary figures showed faster EBITA growth and a higher margin than in the published quarterly comparison. Comparing a single quarter with a half-year remains a reading of two different periods, not a consolidated financial result.

In its first-half report, Karnell had said its EBITA margin exceeded its long-term financial target of 15% for the first time. It also described market conditions as mixed, saying its decentralized model, geographic spread and sector diversity enabled it to continue developing its businesses despite short-term economic fluctuations. Operating cash flow reached 120.8 million kronor in the first half, compared with 33.3 million a year earlier, which the company attributed to higher earnings and efforts to distribute cash flows throughout the year. After two acquisitions completed in 2026, net debt to EBITDA excluding leases was 1.9 times at the end of June, in line with the company’s long-term target of keeping the ratio below two times. Management said strong organic cash flow and debt within the target range gave it flexibility to pursue suitable acquisition opportunities.

The interim report for January to September was scheduled for release on October 23, 2026, at 07:00 Central European Summer Time, with a live presentation the same day at 08:30. The company said the presentation would be in English and include a question-and-answer session. The interim report is the date for the detailed results for the period, following publication of the preliminary third-quarter figures. Until its release, the sales and EBITA figures in the preliminary announcement remain unaudited. The preliminary announcement did not include information on the share’s or market’s reaction.