BHG earnings improved in the third quarter of 2026, with adjusted operating profit rising 32% to SEK 122 million as sales increased 11.7% to SEK 2.9 billion. The October 23 results showed growth across all three business segments and lower leverage, although currency movements and delivery costs continued to pressure margins.
Key Takeaways
- Organic sales grew 9.3%, marking eight consecutive quarters of positive organic growth.
- Adjusted operating margin widened to 4.2%, despite pressure from currency, freight and last-mile delivery costs.
- Operating cash flow increased to SEK 92 million, while leverage fell to 2.1 times from 3.4 times a year earlier.
Table of Contents
- BHG earnings benefit from sales outpacing costs
- Value Home leads growth as all segments improve
- Cash generation improves ahead of seasonal inventory demand
- Currency pressure and platform timing remain watch points
- Conclusion
BHG earnings benefit from sales outpacing costs
Adjusted earnings before interest and tax increased by nearly SEK 30 million from a year earlier. The adjusted EBIT margin rose 0.7 percentage points to 4.2%, extending BHG's run of year-on-year profitability improvement to 12 quarters.
Sales growth outpaced the expansion in the cost base. Rolling 12-month sales had increased 12.5% since the fourth quarter of 2024, while organizational costs rose 1.7%. That gap helped the company turn higher revenue into faster operating-profit growth.
Chief Executive Gustaf Ohrn described restrained organizational cost growth as a long-term ambition, supported by efficiency tools including artificial intelligence. He cautioned that quarterly movements would vary; the recent cost-growth rate was not a fixed forecast.
BHG's July–September 2026 reporting schedule set publication for October 23 at 07:00 CEST and an English-language conference call and webcast for 10:00 CEST.
| Item | Details |
|---|---|
| Value Home | Sales growth of 20.5%; adjusted EBIT margin of 6.0%. |
| Premium Living | Double-digit sales growth; adjusted EBIT margin rose to 3.8% from 2.2%. |
| Home Improvement | Organic sales growth of 3.9%, versus 14.1% a year earlier; adjusted EBIT margin of 4.6%. |
Value Home leads growth as all segments improve
All three segments contributed to higher sales and improved earnings. Value Home delivered its strongest sales growth of the year, supported by furniture demand, while Premium Living recorded the largest margin improvement.
All major geographic markets grew. Eastern Europe and Norway were particularly strong, while Sweden, the largest market, expanded 4%. Management said Sweden faced difficult comparisons and less support from renovation tax deductions. Finland remained the toughest market but still grew.
Cash generation improves ahead of seasonal inventory demand
Quarterly operating cash flow increased to SEK 92 million from SEK 52 million a year earlier, bringing the first-nine-month total to SEK 380 million. Working capital had a negative SEK 150 million effect, broadly matching the previous year as inventory was built for November's Black Month campaigns.
Cash stood at SEK 454 million at the end of September, up from SEK 301 million at the start of 2026. Net debt declined to SEK 1.0 billion from SEK 1.2 billion a year earlier, and unused credit facilities totaled SEK 800 million.
Future acquisition-related payments remain a cash commitment. Chief Financial Officer Jesper Flemme said SEK 204 million of earnout payments remained on the balance sheet, with SEK 50 million due in 2027.
Currency pressure and platform timing remain watch points
The group product margin remained stable, but gross margin declined slightly as currency effects, freight and higher last-mile delivery costs weighed on performance. Stronger product margins in Home Improvement offset currency pressure in Value Home.
Flemme said the largest currency effect was expected in the second quarter of 2027, when Value Home's outdoor-furniture season is concentrated and products are sourced from the Far East in US dollars. Management did not quantify the expected fourth-quarter freight headwind.
BHG also delayed the remaining consolidation of Finland onto its Nordic IT platform to protect commercial activity during an important sales period. Ohrn said the timing would be decided after the fourth quarter, with implementation possible either before or after the key mid-2027 selling season.
Conclusion
BHG enters the fourth-quarter campaign period with stronger cash generation and lower leverage. The next operational test is the November sales season, followed by management's decision on when to complete the Finnish platform migration.
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