EL7.AI
StocksMedium•6 November 2026•
4 min read

Kātila lifts adjusted operating profit to SEK 15 million despite lower sales

Key Facts

1Adjusted operating income was SEK 15 million in the third quarter, up SEK 20 million from a year earlier.
2Quarterly net sales fell to SEK 351 million from SEK 378 million.
3The reported operating loss was SEK 16 million, compared with a profit of SEK 7 million a year earlier.
4Kātila expects annual efficiency savings of SEK 40 million from 2027, after one-off costs of SEK 30 million in 2026.

Kātila lifted adjusted operating income to SEK 15 million in the third quarter of 2026, up SEK 20 million from the same period a year earlier, according to its January-to-September report. The improvement came despite quarterly net sales falling to SEK 351 million from SEK 378 million. On a reported basis, operating income turned to a loss of SEK 16 million, compared with a profit of SEK 7 million a year earlier. Performance therefore combined an improvement in the adjusted measure with a deterioration in reported operating income, amid mixed results across the group’s businesses. Chief Executive Rikke Lykke said the company’s priority was to increase profitability even in a weak market, without relying on a market recovery.

Total income in the quarter was SEK 34 million below its year-earlier level, but reported gross profit rose 4%. Kātila said underlying growth in the quarter was 13% after excluding divestments and fair-value changes. Gross profit was SEK 296 million, compared with SEK 285 million in the same period of 2025. The company attributed the increase mainly to higher gross profit in corporate finance, partly offset by declines in investment management and balance-sheet investments. This highlights the differing directions of sales, total income and gross profit during the period.

Corporate finance was the main source of improvement, with net revenue up SEK 31 million year over year. The company said client activity continued to improve despite renewed uncertainty over interest rates, and that large new mandates would support future revenue generation. By contrast, redemptions exceeded inflows in investment management for the third consecutive quarter. Net outflows were about 3% of assets under management on a constant-currency basis. Kātila said higher interest rates and the appeal of fixed-income yields had affected investors’ allocation decisions and weighed on demand for funds with lower-yielding underlying assets.

Assets under management stood at SEK 162 billion at the end of the quarter, up SEK 1 billion from the second quarter of 2026. In the first nine months, net sales fell to SEK 1,047 million from SEK 1,425 million in the corresponding period of 2025. The company recorded an operating loss of SEK 53 million for the nine months, compared with a profit of SEK 279 million a year earlier. Quarterly loss per share also narrowed to SEK 0.23 from a loss of SEK 0.32 a year earlier, both before and after dilution. The quarterly results put the recovery in adjusted performance alongside weaker reported results over the nine months.

Kātila said measures taken during 2026 would cost SEK 30 million as a one-off this year, and it expects annual efficiency savings of SEK 40 million on a 12-month run-rate basis from 2027. Quarterly measures included restructuring its UK fundraising platform and its development management team in Germany. The company is also continuing selective investment in technology, data, cybersecurity and artificial intelligence. From January 1, 2027, it plans to adopt a federal operating model combining local expertise with clearer group-level support and governance. Lykke said the timing of a market recovery remained uncertain, adding: "We will not rely on a market recovery to achieve stronger profitability"; the company is aiming to improve profitability even in a weak market.

To reduce financing costs, Kātila redeemed bonds worth SEK 532 million during the quarter, saying the move would cut annual borrowing costs by more than SEK 30 million and improve capital allocation efficiency. It also agreed during the quarter to sell a completed residential project in Denmark and reinvest with an international investor in a new residential project through a joint venture. The company expects to record a gain on the sale when it is completed in early first quarter of 2027, while the joint venture is expected to generate future management fees. Kātila’s Class B share closed at SEK 14.38 on November 5, down 11.1% that day. The company is scheduled to publish its 2026 year-end report on February 11, 2027, at 07:00.