Company-defined adjusted EBITA rose 6% to SEK 806 million in Q3, but reported profit declined to SEK 337 million as higher net financial expenses offset operating gains. Adjusted EPS increased, while reported EPS fell. Positive organic EBITA growth for a second consecutive quarter suggests improving momentum, although nine-month margins remain below last year. 1.
Storskogen Group · Q3 2026 · Reported 23 Oct 2026 · Nordic
Operating gains did not reach profit because financial costs rose
Net sales rose 4% to SEK 8,330 million, and company-defined adjusted EBITA rose 6% to SEK 806 million, a margin of 9.7% against 9.5% a year earlier 1. Reported operating profit rose to SEK 620 million (597), but profit for the quarter fell to SEK 337 million (348) and EPS to SEK 0.18 (0.19) 1. Adjusted diluted EPS, however, increased to SEK 0.19 from SEK 0.18, indicating that the decline in reported earnings was not mirrored by the company's adjusted earnings measure.
Net financial items were SEK -171 million (-138) 3. Net interest was SEK -147 million (-139), which the report attributes to slightly higher market rates and lower interest income 3. Exchange and other financial items were SEK -24 million (1) 3. Profit before tax of SEK 449 million (460) therefore fell even though operating profit rose 3. The nine-month picture differs from the quarter. Net financial items improved to SEK -473 million from SEK -633 million, partly reflecting lower interest margins and the absence of prior-year bond repurchase costs. Profit for the nine months increased to SEK 887 million from SEK 824 million, despite lower reported operating profit.
Industry and Trade carried the margin gain while Services lagged
Industry adjusted EBITA rose to SEK 363 million (329) at a 10.0% margin (9.5%), helped by organic profit growth and improved results outside Sweden 8. Trade rose to SEK 230 million (211) at 9.9% (9.0%), which the report attributes to a recovery across a large part of its business units 7.
Services grew adjusted EBITA to SEK 252 million (239), but its margin slipped to 10.7% (10.8%) 6. Organic profit growth was negative, which the report attributes to Infrastructure Services and a subdued construction sector 63. Costs of Group operations were also higher, SEK -39 million against SEK -20 million, because the comparative quarter benefited from an adjustment of costs for concluded incentive programmes 5.
The quarter improved, but nine-month margins remain below last year
Over nine months adjusted EBITA was SEK 2,309 million (2,302) and the margin fell to 9.2% (9.4%) 1. Organic EBITA growth was -2%, with acquisitions and divestments contributing 4% 1. Management notes that organic EBITA growth was positive for the second consecutive quarter and that organic growth is a prerequisite for its 15% average annual adjusted EBITA growth target 2.
Operating cash flow was SEK 646 million (659) in the quarter and SEK 1,299 million (1,300) over nine months 1. Tax paid rose to SEK 142 million (116) in the quarter, and working capital absorbed SEK 92 million (88) 15. Adjusted cash conversion was 80% in the quarter, unchanged, while the 12-month figure was 74% (82), still above the target of at least 70% 3.
Minority liabilities fell sharply and leverage sits within target
Liabilities for contingent considerations and minority options fell by SEK 634 million in the quarter to SEK 1,185 million 5. Interest-bearing net debt to adjusted EBITDA was 2.5x (2.4), within the 2-3x target range 5. In the nine months the Group paid SEK 785 million for minority shares 19. Management says the buyouts will be accretive to EPS going forward and that it can again invest most of its cash flow in organic initiatives and acquisitions 2.
What to watch next
Whether the margin gain carries into Q4: management enters the quarter with 'positive operational momentum', but Trade flags campaign-related margin pressure and the report gives no numeric guidance 27.
Whether organic EBITA growth turns positive over the year, from -2% for the nine months, and whether Services recovers as construction-related demand improves; its outlook is 'cautiously optimistic' 1.
Whether lower minority liabilities and the EPS accretion management cites offset higher financial costs; after the period the Group added a platform acquisition with annual sales of SEK 112 million and an add-on with SEK 93 million 1.
Sources
Produced by Clarifo Research with the Clarifo financial research engine from the company's public filings. AI was used in parts of the analysis and drafting. Figures are checked automatically against the filings they come from. This is not investment advice.