Sweden's Ferronordic Q1 profit rises on cost reductions

Ferronordic AB

13/05/2026 06:38

Overview

Sweden construction equipment dealer's Q1 revenue fell 6% yr/yr

Operating profit more than doubled, driven by US and Germany performance and cost control

Net income turned positive after a loss in the prior year period

Outlook

Company expects US market demand to remain robust, supported by infrastructure and AI-related investments

Ferronordic sees continued recovery in Germany as market renewal needs build, though higher fuel prices weigh on sentiment

Company sees opportunities for sales and profit growth in Kazakhstan with improved operational execution

Result Drivers

US DEMAND - Strong US demand, especially from infrastructure and data center construction, supported operating profit growth

GERMANY COST ACTIONS - Cost reductions and improved aftermarket operations in Germany contributed to positive operating profit despite a subdued market

OPERATIONAL IMPROVEMENTS - Company-wide operational improvements and cost control supported margin and profit gains

Company press release: ID:nWkrTRDsf

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
SEK 1.13 bln
Q1 Net Income
SEK 32 mln
Q1 Gross Margin
17.70%
Q1 EBIT
SEK 37 mln
Q1 EBIT Margin
3.20%


Analyst Coverage

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 11 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)