AddLife's Margin Story Gathers Pace: Home Care and Eye Surgery Turn

AddLife's second-quarter report read like a masterclass in operational discipline. The company's own keywords tell the story: Home Care, Eye surgery, and Advanced products dominated the call, and the numbers backed the rhetoric. Group EBITA margin expanded to 12.6% from 11.9% a year earlier, with both Labtech and Medtech contributing. CEO Fredrik Dalborg opened the call with the priority squarely in focus:

The Home Care and Eye Surgery Tails Are Finally Wagging

The most company-specific development was the confirmation that two long-running restructuring projects have turned. Home Care, a business unit that had previously been a drag on group margins, delivered "significant growth in the quarter and margins are clearly improving," as Dalborg put it. The unit contributes a SEK 700 million turnover, roughly 50% proprietary products, and a comprehensive product portfolio spanning home adaptation, welfare technology, and fall detectors. It is now being positioned as a growth engine: “All in all, we have a portfolio that fits really well with the market trends.” — Fredrik Dalborg, CEO · 2026-07-16

Eye surgery, the other long-standing improvement project, has shifted from cost focus to sales. Management noted margins are now "above that 5% level" after a year of mid-single-digit profitability, with some companies already in double-digit territory. The confidence comes from the fact that the typical Q2 seasonal drop in margin did not materialize this year. Dalborg was direct: “That gives us much better confidence that we are on the right track here.” — Fredrik Dalborg, CEO · 2026-07-16

Growth Is Broad, but Strikes and UK Capital Cast a Shadow

Underlying organic growth came in at 4%, with another 3% from acquisitions, leading to 6% total revenue growth. The positive demand trend in research continues to strengthen, particularly in Eastern Europe and Poland. However, two headwinds were repeatedly cited: strikes in Spain and subdued capital investment in the UK's NHS. CFO Christina Rubenhag quantified the impact on profitability: “EBITA margin increased to 12.6% from 11.9% last year, and profit before tax was up with 29%.” — Christina Rubenhag, CFO · 2026-07-16

Spain is a cultural exception. Despite a doctor strike affecting every month of the quarter, the Spanish Medtech business MBA delivered strong underlying growth, driven by a mix shift toward advanced products. The strikes cost about one week per month of procedure volumes, yet the business still grew. The UK is slower: the order book for capital goods is strong, but customers are deferring deliveries. Dalborg's read:

I think what we can conclude is gradual improvements and not a dramatic shift.

M&A: Quietly Building the Engine

M&A has been a recurring theme for AddLife, and the tone this quarter was more confident than usual. Four deals were closed in the past seven months, some smaller, but with "quite nice margins." The company explicitly acknowledged it needs to increase the pace, and management reported an active pipeline with more advanced processes than a year ago. “We do feel quite confident about the pipeline and about the processes that we're in.” — Fredrik Dalborg, CEO · 2026-07-16 The acquisitions are already contributing to earnings growth, as highlighted in the company's keyword trend with completed acquisitions and acquired companies appearing prominently.

The late-cycle news flow is constructive. Labtech's strong quarter had no one-offs, and recent tender wins in Eastern Europe and Sweden should begin converting into revenue in the coming months. Leverage at 2.6x remains below the 3x ambition, giving the balance sheet ample room for further acquisition-driven growth. In short, AddLife is delivering on its margin promise while positioning itself for a step-up in M&A — a combination that should keep investors interested.