Roko earnings for the third quarter of 2026 showed net sales rising 44% and adjusted EBITDA increasing 57%, driven mainly by acquisitions. In its October 23 earnings discussion, management also reported 9% organic sales growth, but said the pace of dealmaking had pushed net debt-to-EBITDA up to 2.6 times.
Key Takeaways
- Acquisitions supplied most of the quarterly growth, alongside organic expansion and favorable currency movements.
- Stronger margins in comparable businesses were offset by lower-margin acquisitions over the first nine months.
- Management said AI-related demand supported growth, but cautioned that its duration was uncertain.
Table of Contents
- Roko earnings reflect acquisitions and organic growth
- Acquisition timing raises leverage
- Underlying margins improve despite a flat reported margin
- AI demand contrasts with weak construction markets
- Conclusion
Roko earnings reflect acquisitions and organic growth
Six acquisitions completed since September 2025 contributed to the third-quarter expansion. Positive exchange-rate differences also helped, making the 44% reported sales increase substantially larger than the 9% organic growth rate.
The acquisition count differs when measured over the calendar year: Roko completed five purchases in the first nine months of 2026. Those businesses had combined annual turnover exceeding SEK 1.5 billion, equivalent to approximately 24% additional annual net sales. That annual sales contribution is not the same as revenue recognized during the reporting period.
The strategy follows Röko’s decentralized ownership model, under which acquired businesses retain operational independence and the group takes a perpetual-ownership approach. Management described the current acquisition pipeline as stronger than in previous years.
| Item | Details |
|---|---|
| Nine-month adjusted EBITDA | Up 30% year over year. |
| Nine-month organic net sales | Up 6% year over year. |
| Nine-month free cash flow after capital expenditure | Up 34% year over year. |
| Return on capital employed | 15.5%, up one percentage point year over year. |
Acquisition timing raises leverage
Net debt-to-EBITDA increased by 0.5 times to 2.6 times. The chief executive attributed the increase to acquisitions affecting the balance sheet immediately, while their earnings are phased into the EBITDA measure.
Management said it was comfortable with leverage of up to three times over the longer term. It also said the current ratio represented approximately 60% of the covenant threshold in its bank agreements.
The earnings contribution from completed acquisitions should reduce the ratio as it phases in, all else being equal, management said. That qualification matters: it does not amount to a commitment to a particular debt ratio or timetable.
Underlying margins improve despite a flat reported margin
For the first nine months of 2026, the reported EBITDA margin was flat. Management said comparable companies improved their margins through stronger performance and a favorable business mix, but recently acquired businesses carried below-average margins and offset those gains.
Free cash flow after capital expenditure benefited from margin improvement in comparable companies. Cash conversion was in line with or slightly better than a year earlier, although the 2025 comparison included SEK 41 million of IPO costs.
Working capital remained controlled despite organic expansion. Management said it was monitoring potential extensions in delivery times while working with subsidiary management teams to improve cash flows.
AI demand contrasts with weak construction markets
The chief executive said ATB was well positioned to benefit from AI-driven infrastructure demand and was performing strongly, but cautioned that the duration of that growth could not be predicted. Other group businesses were also growing organically.
Memory supply shortages created a mixed picture: one D2D technology business benefited, while some other group companies faced challenges. Management said the adverse effects were not material enough to report.
The principal market uncertainties remained companies selling large systems and installations in the United States and continued weakness in UK construction. Beyond those areas, management said company-specific factors were determining performance.
Conclusion
Roko’s completed acquisitions have expanded its earnings base while raising leverage and diluting the reported margin. The next operating updates will show how those businesses contribute as their earnings phase in, alongside the durability of organic growth.
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