AddLife earnings for the third quarter of 2026 showed sales rising 7% to SEK 2.599 billion, while the adjusted EBITA margin reached 11.5%. The European life-science group’s October 21 results discussion highlighted stronger cash generation and increased acquisition activity, although investment in advanced products and weaker summer surgery volumes weighed on MedTech profitability.
Key Takeaways
- Organic growth contributed four percentage points to sales growth, with acquisitions adding three.
- LabTech profitability improved, while lower elective surgery activity and investment costs weighed on MedTech.
- Operating cash flow rose 62%, supporting a more active acquisition agenda.
Table of Contents
- AddLife earnings combine sales growth with stronger profitability
- LabTech gains contrast with MedTech investment costs
- Cash generation improves as inventory rises
- Acquisition responsibilities shift closer to the businesses
- Conclusion
AddLife earnings combine sales growth with stronger profitability
AddLife’s third-quarter 2026 interim report records adjusted EBITA of SEK 298 million. This measure is earnings before interest, tax and amortization, rather than EBITDA.
Management attributed the improvement in group profitability to higher gross margins, operational progress and acquisitions. Gross margin rose by one percentage point as advanced products accounted for a larger share of the business.
That shift also required additional spending. CFO Christina Rubenhag said the main increase in operating costs related to sales employees supporting more advanced products and new portfolios, with some resources added before the associated revenue materialized.
| Item | Details |
|---|---|
| BioSpectrum | Acquired March 11, 2026; UK surgical-solutions distributor; added to MedTech. |
| CoaChrom Diagnostica | Acquired April 22, 2026; Austrian advanced coagulation-diagnostics specialist; added to LabTech. |
| Lehnen | Acquired October 12, 2026; German manufacturer of accessible bathroom products and systems; added to MedTech. |
LabTech gains contrast with MedTech investment costs
LabTech sales grew 7%. CEO Fredrik Dalborg said its profitability improvement contained no one-off benefit: previously won tenders were translating into instrument installations and sales, new product portfolios were beginning to contribute, and acquired businesses carried margins above the group average.
MedTech faced lower summer elective surgery activity while building resources to support more advanced products. Gross margins nevertheless improved in both business areas, distinguishing stronger product profitability from the additional costs needed to sell and support those products.
In the UK, capital equipment orders highlighted in the previous quarter were largely delivered during Q3. Dalborg described surgical procedure volumes as improving and the capital equipment order book as normalized. Spain remained less certain: the healthcare labor dispute was unresolved, and he warned that further strikes could disrupt procedures.
Cash generation improves as inventory rises
Operating cash flow increased 62%, with cash conversion above 100%. The stronger cash generation gives AddLife more capacity to fund its growth strategy internally.
Inventory nevertheless rose to 18% of sales, compared with 17% in the first half. Management linked the increase partly to new product introductions and preparations for the fourth quarter. The inventory build and sales-support hiring show that expansion still requires working capital and spending ahead of revenue.
Acquisition responsibilities shift closer to the businesses
Dalborg said business-unit leaders now drive their own acquisition agendas, supported by senior advisers, transaction specialists and lead-generation resources. He described the pipeline as deeper and more resilient than a year earlier, with most companies under consideration involved in exclusive discussions.
Management said it would not lower acquisition standards to increase deal volume. The strategy remains focused on differentiated products that can improve healthcare efficiency and require specialist support or customization.
The completed transactions below illustrate the group’s 2026 activity. Lehnen was acquired on October 12, after the third quarter ended, and therefore should not be treated as a contributor to Q3 results.
Conclusion
The next operating test is the fourth quarter, for which AddLife has built inventory and added sales resources. Converting those investments into revenue, while integrating the newly acquired Lehnen business, will help show whether stronger gross margins can translate into further profitability gains.
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