Sweden's Meko Q1 net sales fall 3%, adjusted EBIT declines

Meko AB

07/05/2026 06:38

Overview

Swedish automotive aftermarket supplier's Q1 net sales fell 3%, with 1% organic growth

Adjusted EBIT declined year-over-year amid increased competitive pressure

Company improved cash flow and reduced net debt through cost-cutting and efficiency measures

Outlook

Meko aims to reduce net debt ratio to target range of 2.0–3.0

Company expects delivery issues in Norway to be resolved in Q2

Meko implementing workforce reduction in Poland, completion expected by Q3

Result Drivers

POSTPONED CAR SERVICING - Co said many car owners delayed non-essential servicing and repairs, dampening demand

COST REDUCTIONS - Co attributed improved operating profit and cash flow to cost reductions and workforce optimization

COMPETITIVE PRESSURE - Co said increased competition among spare parts wholesalers, workshops and stores impacted results

Company press release: ID:nMFN4Tfctq

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Adjusted EPS
SEK 1
Q1 Adjusted EBIT
Miss
SEK 200 mln
SEK 231.50 mln (2 Analysts)
Q1 Adjusted EBIT Margin
4.40%
Q1 EBIT
SEK 173 mln
Q1 EBIT Margin
3.80%
Q1 Organic Growth
1.00%


Analyst Coverage

The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy."

Wall Street's median 12-month price target for Meko AB is SEK90.00, about 21.5% above its May 6 closing price of SEK74.10

The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)