Balco earnings for the third quarter of 2026 showed higher sales but weaker profitability, as the balcony group cut jobs and restructured operations. Results released on October 26 put net sales at SEK295 million, up from SEK277 million a year earlier, while adjusted EBITA fell to SEK1 million from SEK3 million.

Key Takeaways

  • Organic sales grew 6%, but the adjusted EBITA margin narrowed to 0.5%.
  • Renovation profit improved, while the new-build business moved into an adjusted operating loss.
  • Management expects approximately SEK25 million in annual savings, with the full effect during Q2 2027.

Balco earnings show growth without stronger profitability

The adjusted EBITA margin fell from 1.1% a year earlier, showing that higher revenue did not translate into stronger underlying operating profitability. CFO Viktor Arvidsson attributed quarterly gross-margin pressure to individual projects and the mix of sales across group companies.

Reported loss per share widened to SEK3.23 from SEK0.23. Items affecting comparability totaled negative SEK88 million, including SEK79 million in asset write-downs. Adjusted loss per share, which excludes specified items, narrowed slightly to SEK0.21 from SEK0.23.

Balco’s Q3 presentation invitation scheduled the results release for October 26, followed by a presentation from acting CEO Johan Dyberg and CFO Viktor Arvidsson. That notice establishes the reporting timetable rather than the financial results.

ItemDetails
Operating cash flowNegative SEK12 million in Q3 2026, versus positive SEK3 million a year earlier.
EquitySEK668 million, compared with SEK744 million a year earlier.
Equity-to-assets ratio43%, versus about 44% a year earlier.
Net debt including leases / adjusted EBITDA6.7 times, compared with 6.8 times a year earlier.

Renovation improves as new-build losses weigh

Renovation, which accounted for 77% of group sales, generated revenue of SEK226 million, compared with SEK206 million a year earlier. Its adjusted operating profit increased to SEK4 million from SEK2 million, with the margin rising to 1.7% from 1.2%.

New-build sales declined to SEK68 million from SEK70 million. The segment posted an adjusted operating loss of SEK3 million, against a SEK1 million profit a year earlier. Its order intake nevertheless rose to SEK55 million from SEK33 million.

Group order intake was broadly steady at SEK220 million, versus SEK222 million, while the backlog increased to SEK1.571 billion from SEK1.377 billion. Arvidsson cautioned against placing too much weight on a single quarter’s orders because large projects can fall on either side of a reporting boundary.

Restructuring savings remain a forward-looking target

Balco’s measures include reducing its workforce by about 60 people, roughly 10% of employment, exiting the Netherlands and consolidating Swedish operations. Dyberg said the remaining Dutch commitments were being handled by Balco UK.

Management expects approximately SEK25 million in annual savings. Benefits are expected to begin appearing in Q4 2026, but Dyberg and Arvidsson said the full effect would take until Q2 2027. The savings are therefore a management expectation, not a result already achieved in the third quarter.

Dyberg said Balco was not counting on a market recovery in either renovation or new build. Although he noted slight improvement in Swedish and Norwegian new-build activity, he did not see a rapid upturn.

Cash generation and capital structure remain in focus

Operating cash flow turned negative despite the increase in sales. Arvidsson said Balco repaid SEK10 million of bank loans during the quarter and was considering all measures concerning its capital structure. He did not announce a share issue or rule one out.

Next milestone

A further confirmed milestone is the leadership handover: incoming CEO Charlotte Mattsson is due to join in Q1 2027, with onboarding already under way.

Read More News

More FinanceVelix news

Disclaimer

This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.