Röko lifts sales 44% and adjusted EBITA 57% in third quarter
Key Facts
Röko reported a 44% year-on-year increase in sales in the third quarter of 2026, with adjusted EBITA up 57%, according to the earnings-call transcript published on Investing.com. Adjusted EBITA was 433 million Swedish kronor, compared with 275 million in the same period a year earlier. The adjusted EBITA margin widened by two percentage points to 20%. Management said growth came mainly from acquisitions, alongside organic growth and positive currency effects during the quarter. The results show that expansion relied on a combination of adding new companies and improved activity within the group.
Management said the group had completed 6 acquisitions since September last year, and that these deals were the biggest driver of quarterly growth. Organic sales growth was 9%, while exchange-rate movements supported the overall increase, according to the transcript. But this organic growth was not evenly distributed across subsidiaries. ETB Technologies contributed six percentage points of it, while the group’s other companies achieved organic growth of about 3%. Management said the rest of the group, excluding ETB, also continued to grow organically.
ETB’s performance was linked to demand related to artificial intelligence and data centers, according to the earnings call. However, management said it could not determine how long the company’s growth could continue at its current level. This places ETB’s substantial contribution to organic growth in a context of uncertainty about its durability, while management pointed to organic growth across the group’s other companies. It said: "We cannot say how long this will continue at this level." The caution came alongside management’s confirmation that organic growth was not limited to ETB.
In the first nine months of 2026, adjusted EBITA rose 30%, supported by the pace of acquisitions and organic growth, management said. Organic sales growth was 6% for the nine months, compared with 3% in the same period of 2025. In contrast, exchange-rate movements reduced growth for the period by 2%. The difference between the currency impact in the quarter and across the nine months reflects their varying contributions over the two periods. Management said the pace of acquisitions that began at the end of last year continued in the third quarter and contributed to earnings growth year to date.
Operating cash flow after capital expenditure increased 50% to 305 million kronor in the third quarter. For the first nine months, the figure was 914 million kronor, up 34% year on year. Management said cash conversion was in line with or slightly better than the previous year, noting that listing costs affected the 2025 figures. Cash flow provides another indicator of the group’s performance during its acquisition-led expansion. The earnings call did not provide a quantitative breakdown of the impact of listing costs on the comparison in these figures alone.
Net debt to adjusted EBITDA was 2.6 times at the end of September 2026. Management said it was comfortable with leverage of up to 3 times over the long term and described that level as acceptable over that horizon. It said the timing of integrating acquisitions could lead to lower leverage as the acquired companies contribute to earnings. Management also said the average EBITA multiple paid in Röko’s acquisitions since 2019 remained below 8 times. These indicators link the continued acquisition strategy with management’s stance on debt levels and the valuation of acquired companies.
Following the results announcement on 23 October 2026, Röko shares rose 11.08% to $2,115, according to the results presentation published on Investing.com. The price was near the stock’s 52-week high of $2,170. The share-price gain coincided with the announcement of sales and adjusted EBITA growth and a wider profit margin in the quarter. ETB’s growth and the continued impact of acquisitions remain among the performance factors discussed by management on the earnings call. The disclosure did not specify a later date among the facts available here.