Green Landscaping earnings weakened in the third quarter of 2026 despite an 11% increase in sales, as the landscaping and ground-maintenance group faced pressure on profitability and cash generation. Results released on October 23 showed adjusted EBITA of SEK 123 million, down 9% from a year earlier, on revenue of SEK 1.788 billion. Management launched its Green Performance program to improve margins, strengthen cash flow and coordinate the group’s locally run businesses.
Key Takeaways
- Organic sales grew 3%, marking a third consecutive quarter of organic growth.
- The adjusted EBITA margin narrowed to 6.9% from 8.4%, while operating cash flow declined.
- Management is prioritizing cash generation and cost reductions as leverage remains above target.
Table of Contents
- Green Landscaping earnings lag sales growth
- Regional growth masks uneven trading conditions
- Green Performance targets costs and project oversight
- Cash generation takes priority over backlog growth
- Conclusion
Green Landscaping earnings lag sales growth
The company’s interim report for January–September 2026 shows that higher third-quarter revenue did not translate into stronger operating earnings. Adjusted EBITA fell even as sales increased, leaving the margin 1.5 percentage points below its year-earlier level.
The group also recorded SEK 79 million in negative non-recurring items following a comprehensive business review. Basic and diluted earnings per share moved into negative territory.
The results underline the distinction between expanding revenue and improving profitability. Acquisitions and organic growth supported the top line, but management said the rolling 12-month adjusted operating margin remained unsatisfactory.
| Item | Details |
|---|---|
| Q3 net sales | SEK 1,788 million, versus SEK 1,605 million a year earlier. |
| Q3 adjusted EBITA | SEK 123 million, versus SEK 135 million. |
| Q3 operating cash flow | SEK 28 million, versus SEK 47 million. |
| Q3 basic and diluted earnings per share | SEK -0.26, versus SEK 0.56. |
| Debt maturities | Bank loans and the SEK 500 million senior unsecured bond mature at the end of 2028; bank loans have a two-year extension option. |
Regional growth masks uneven trading conditions
Norway’s sales rose 16%, including 9% organic growth, but CFO Marcus Holmström said strong price pressure weighed on profitability. Some local businesses continued to drag on performance, although management said a previously struggling operation was moving in the right direction.
Sweden’s sales fell 7%, reflecting a 4% organic decline and a 3% impact from the SenseQ divestiture. Weaker demand for alteration and variation orders reduced volumes, although adjusted earnings improved from a low year-earlier base.
Other Europe delivered 29% sales growth, mainly through acquisitions, with organic growth of 5%. Management described improving profitability in Germany and Finland, while lower-than-expected volumes under a renewed Lithuanian contract held back that market.
Green Performance targets costs and project oversight
Interim CEO Clein Ullenvik said Green Performance combines organizational changes, cost reductions, closer project oversight and greater data transparency. The aim is to retain local decision-making while improving coordination and governance across the group.
Ullenvik linked restructuring announced in September partly to the chief executive change and partly to group functions. He said the changes would lower the annual cost run rate by roughly SEK 10 million; that is an expected benefit, not a saving already delivered.
The executive management team was expanded in September to include country managers for Norway, Finland and the Baltics, and the DACH region. Recruitment of a permanent chief executive remained underway following the July announcement that Johan Nordström would leave.
Cash generation takes priority over backlog growth
Adjusted financial leverage increased to 3.5 times from 3.0 times a year earlier, above the company’s target. Holmström said the group retained headroom under its loan covenants, but cash generation was the priority for reducing leverage.
Management said the fourth and first quarters are seasonally the strongest periods for cash flow and expected working-capital releases in line with historical patterns. That expectation remains separate from the weaker cash flow already reported for the third quarter.
The order backlog increased to SEK 8.5 billion. Holmström cautioned that it fluctuates between quarters and should not be treated as a short-term leading indicator, limiting how much it says about the timing of future revenue.
Conclusion
Green Landscaping’s next operating test is whether its improvement measures and seasonally stronger cash-generation quarters help reduce leverage. Revenue growth has continued, but the reported results leave profitability and cash conversion as management’s immediate priorities.
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