Ratos Raises Adjusted Earnings to SEK 480 Million, Beating Third-Quarter Expectations
Key Facts
Sweden’s Ratos lifted adjusted earnings before interest, taxes and amortization (EBITA) to SEK 480 million in the third quarter of 2026, from SEK 373 million a year earlier, and its margin widened to 10.8% from 9.0%. The company reported the results on October 23, and CEO Gustaf Salford said the quarter was marked by good organic growth and broad improvement in profitability across its portfolio companies. Sales came to SEK 4,427 million, while organic growth was 5.9%. Both figures exceeded consensus estimates published before the report, which aggregated forecasts from 5 contributors at an average of SEK 4,221 million for sales and SEK 416 million for adjusted EBITA. The results reflect improved adjusted performance across the portfolio, alongside declines in reported profit and cash-flow measures compared with the year-earlier period.
Operating profit was SEK 450 million, compared with SEK 606 million in the third quarter of last year. Ratos said the prior-year comparison included positive items of SEK 263 million that affected comparability, most of them stemming from the arbitration settlement related to Diab. Profit for the period was SEK 327 million, compared with SEK 444 million a year earlier. Diluted earnings per share were also SEK 0.83, compared with SEK 1.20. On an adjusted basis, diluted earnings per share rose to SEK 0.83 from SEK 0.43, highlighting the different direction of the adjusted figure from reported earnings.
Cash flow from operating activities was SEK 270 million, compared with SEK 868 million in the year-earlier period. The company attributed part of the difference to positive items of SEK 700 million in the previous year, most of them linked to the arbitration settlement at Diab. This cash-flow comparison came alongside declines in operating profit and profit for the period, despite higher adjusted EBITA and a wider margin. The quarter’s results therefore combined improved adjusted portfolio profitability with reported figures affected by an exceptional comparison base. Salford said profitability had improved broadly across the portfolio companies, and pointed to ongoing organic growth initiatives, additional acquisitions and the strengthening of industrial expertise on company boards.
In the first nine months of 2026, sales were SEK 14,626 million, compared with SEK 14,231 million in the comparable period, with organic growth of 4.1% after organic contraction of 2.3% in the year-earlier period. Adjusted EBITA for the period rose to SEK 1,885 million from SEK 1,586 million, and its margin widened to 12.9% from 11.1%. These figures provide a longer-term view than the quarterly results alone, combining sales growth with improved adjusted profitability from January to September. In the second quarter, sales were SEK 5,703 million, compared with SEK 5,594 million, and adjusted EBITA was SEK 988 million, compared with SEK 867 million. Organic growth in that quarter also accelerated to 3.4% from 1.3% a year earlier.
Salford said industrial products and infrastructure companies delivered relatively stronger performance, while industrial services companies faced more challenging market conditions. This contrast details the variation in performance within the portfolio, alongside management’s description of the profitability improvement as broad. Management plans to continue organic growth initiatives, add acquisitions and strengthen industrial expertise on the boards of group companies. Among the steps cited in the results materials was the completion of the HL Display and Top Global deal, expected in the fourth quarter. Ratos had scheduled the report presentation for October 23 at 10:00 a.m. Central European Summer Time, with Salford and CFO Anna Velogurac participating, after publishing the results at 7:30 a.m.