Lagercrantz earnings increased in the quarter ended September 30, 2026, as 12% organic growth helped lift revenue by 22% to SEK 2.99 billion. The technology group reported net profit of SEK 340 million, up 31%, in results released on October 23. Stronger demand across several businesses supported growth, although restructuring costs and weak construction markets held back parts of the group.
Key Takeaways
- Organic growth supplied more than half of the quarter’s 22% revenue increase.
- Quarterly EBITA rose 21% to SEK 531 million, while its margin edged down to 17.8%.
- Eight first-half acquisitions added businesses with combined annual sales of about SEK 660 million.
Table of Contents
- Lagercrantz earnings grow with stronger underlying demand
- Divisional gains contrast with restructuring pressure
- Cash generation trails the pace of profit growth
- Acquisition target holds as further costs remain possible
- Conclusion
Lagercrantz earnings grow with stronger underlying demand
Lagercrantz’s interim results for April–September 2026 show second-quarter profit before tax rising 24% to SEK 425 million. EBITA, operating profit before amortization of intangible assets, increased from SEK 440 million to SEK 531 million. Its margin was slightly below the previous year’s 17.9%, indicating that operating earnings broadly tracked sales rather than benefiting from margin expansion.
Acquisitions contributed 9 percentage points to quarterly revenue growth and currency movements added 1 percentage point. The 12% organic increase exceeded the first-half rate of 9%, showing a stronger underlying sales pace in July–September.
Chief Executive Jörgen Wigh said growth was fairly broad-based rather than driven by a single large delivery. Stronger orders received before the summer translated into higher revenue, with electrification, infrastructure, security and defense businesses performing particularly well.
| Item | Details |
|---|---|
| First-half revenue | SEK 5,897 million, up 20% from SEK 4,930 million. |
| First-half EBITA | SEK 1,029 million versus SEK 872 million; margin of 17.4% versus 17.7%. |
| First-half profit before tax | SEK 830 million, up 21% from SEK 686 million. |
| First-half net profit | SEK 655 million, up 25% from SEK 523 million. |
| First-half operating cash flow | SEK 549 million versus SEK 553 million. |
| Trailing 12-month earnings per share | SEK 6.45, compared with SEK 5.81 for fiscal 2025/26. |
Divisional gains contrast with restructuring pressure
Electrification revenue rose 22%, including 18% organic growth, while divisional EBITA increased 19% and its margin reached 20.7%. Management cited electricity-grid investment, wind turbine deployments and the green transition as supportive market conditions.
Control revenue increased 29%, with 16% organic growth, but EBITA declined slightly because of non-recurring restructuring costs. Wigh said underlying demand, particularly in military-related businesses such as CP Cases, supported sales rather than one-off orders.
Niche Products delivered 19% revenue growth and a 43% increase in EBITA, helped by price increases and stronger business performance. International grew 5%, entirely organically, but EBITA slipped slightly as lower road-maintenance deliveries and difficult comparisons weighed on results.
Cash generation trails the pace of profit growth
Quarterly operating cash flow rose modestly to SEK 270 million from SEK 265 million. Over the first half, however, cash generation was slightly below the previous year despite higher earnings. The difference matters because stronger accounting profits did not translate into a comparable increase in operating cash.
The balance sheet nevertheless strengthened: the equity ratio reached 32%, compared with 31% a year earlier, while return on equity over the latest 12 months improved to 31% from 30%.
Acquisition target holds as further costs remain possible
Lagercrantz completed eight acquisitions in the six months ended September 30. Wigh said the annual target of eight to 12 acquisitions would not change this year, while emphasizing the ambition to generate at least 10% annual growth through acquisitions.
Management expects that work on underperforming companies could bring further restructuring charges over another quarter or two. No specific amount was disclosed for Control’s quarterly charges.
Construction demand remained sluggish, while higher raw-material and freight costs prompted price increases. Wigh also cautioned that geopolitical uncertainty could make customers more hesitant about larger investments, even after an improvement in order intake across several businesses.
Conclusion
Lagercrantz earnings benefited from stronger organic demand alongside continued acquisitions. In the coming quarters, the focus will be on the additional restructuring costs management anticipates and whether stronger orders continue to convert into revenue.
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