Bilia earnings for the third quarter of 2026 showed operating profit rising to SEK 380 million from SEK 310 million a year earlier, led by a record third-quarter result in its service business. In its October 23 earnings discussion, the vehicle retailer reported stronger new-car orders but continued pressure on used-car profitability and delays affecting some electric-vehicle deliveries.
Key Takeaways
- Service operating profit reached SEK 293 million as the division’s margin expanded to 12%.
- New-car orders rose 27%, adjusted for new brands, but some Volvo EV deliveries face delays.
- Operating cash flow reached SEK 479 million, while leverage declined to 1.2 times EBITDA.
Table of Contents
- Bilia earnings growth rests on stronger service margins
- New-car backlog grows, but delivery timing remains uneven
- Cash generation supports lower leverage and more credit capacity
- Management expects tax changes to influence fourth-quarter demand
- Conclusion
Bilia earnings growth rests on stronger service margins
Group operating profit increased by about 23%, with an operating margin of 3.8%. Turnover was somewhat higher than a year earlier, although earnings per share slipped slightly to SEK 2.
The service business supplied SEK 60 million of the group’s SEK 70 million year-on-year operating profit increase. Its quarterly profit rose from SEK 233 million to SEK 293 million, while its margin widened from 10.2% to 12%. Organic service growth was 3.6%.
CEO Per Avander attributed the improvement to greater efficiency, more new-car deliveries supporting delivery-workshop activity, and strong dismantling operations. Sweden’s service margin reached 14.2%, above the company’s 14% target.
Bilia’s third-quarter reporting timetable scheduled publication for October 23, 2026, followed that morning by a presentation and questions with Avander, CFO Kristina Franzén and investor-relations head Carl Fredrik Ewetz.
| Item | Details |
|---|---|
| Additional credit facility signed in Q3 | SEK 800 million |
| Total committed credit facilities | SEK 3.1 billion |
| Committed facilities utilized | SEK 610 million |
| Dividend paid during Q3 | SEK 138 million |
| 2026 dividend schedule | SEK 6 per share in four equal installments; two paid, with the final payment scheduled for January 2027. |
New-car backlog grows, but delivery timing remains uneven
New-car order intake increased 27% from the third quarter of 2025, adjusted for new brands. The backlog reached 18,600 vehicles, approximately 6,100 more than a year earlier.
The car business earned SEK 99 million, up from SEK 81 million. Used-car profit, however, declined to SEK 65 million from SEK 68 million. Avander linked weaker Norwegian used-car earnings to lower gross margins amid plentiful supply and strong price competition from new cars. He described used-car inventories as balanced across the company’s markets.
Franzén said deliveries normally take three to six months, but delays to some Volvo electric models could extend that period. The backlog therefore represents orders still to be fulfilled, rather than sales already recognized.
Cash generation supports lower leverage and more credit capacity
Operating cash flow was SEK 479 million, broadly in line with the previous year after adjusting for a SEK 303 million property-sale payment received in that earlier period.
Net debt excluding IFRS 16 lease liabilities stood just below SEK 2.2 billion. On the same basis, net debt to EBITDA improved to 1.2 times from 1.3 times at both the end of the second quarter and year-end 2025, remaining below Bilia’s target ceiling of 2.0 times.
Net financial expense fell SEK 7 million year on year to SEK 78 million, which Franzén attributed to currency effects and lower interest expense. The improvement over the first nine months totaled SEK 33 million.
Management expects tax changes to influence fourth-quarter demand
Avander described improving conditions in Sweden and Norway, while characterizing Western Europe as stable. He expected Norway’s year-end VAT change to bring a fourth-quarter peak in activity and potentially softer new-car demand in the first quarter of 2027. That remains management’s outlook rather than a completed sales result.
Acquisitions remain a capital-allocation priority alongside maintaining stable leverage. Management identified Volkswagen dealerships, trucks and dismantling as areas of interest, but said profitability challenges and sellers’ valuation expectations were making transactions difficult.
Conclusion
Bilia earnings benefited chiefly from stronger service profitability, while used-car margins remained under pressure. The next operational test is converting the large new-car backlog into deliveries during the fourth quarter, when management expects Norway’s tax change to influence timing.
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