Hiab's Labrie Acquisition Marks a Strategic Leap into Environmental Solutions and Raises 2026 Margin Guidance

Q2 shows continued recovery in Europe and record services margins, while the completed acquisition of Labrie sets up a new growth vector in North American waste management.

HIAB.HE · Earnings Call · 2026-07-22

Hiab's second quarter delivered a steady beat on the top line and a significant upgrade to its full-year guidance, but the real story is the transformative acquisition of Labrie Environmental Group, which closed on July 1. The deal marks a clear strategic pivot into North American waste and recycling infrastructure, and the company's decision to introduce comparable EBITDA underscores how it wants investors to view the combined entity.

Q2 Results: A Steady Beat with a Bigger Story

Order intake surged 16% year-over-year to EUR 437 million, with positive book-to-bill across all three regions for the second consecutive quarter. Sales were roughly flat at EUR 403 million, but comparable operating profit rose slightly to EUR 61 million, lifting the margin to 15.1%. The standout was Services, which posted record quarterly sales of EUR 123 million and a 26.1% comparable operating profit margin. As Scott Phillips noted, "we continue to introduce pioneering innovations within the on-road load handling solution," and the defense logistics business was rebranded as Hiab Defence Logistics, with two new product launches at Eurosatory. The company also specified its 2026 outlook, raising the comparable operating profit margin expectation to above 14.5%, an all-time high. CFO Mikko Puolakka explained: "based on the specified outlook, we estimate the 2026 comparable operating profit margin to exceed 14.5%." This reflects better visibility, the cost-saving program, and the consolidation of Labrie.

The Labrie Acquisition: A Strategic Pivot

The acquisition of Labrie Environmental Group is the headline event. For just over USD 1 billion (9.2x trailing EBITDA), Hiab is acquiring the leading North American refuse collection vehicle manufacturer. The company generated USD 491 million in 2025 sales with a 23% EBITDA margin and a 17% operating profit margin. The deal is expected to be both margin and growth accretive, with a strong cash generation profile. As Scott Phillips put it: "this is a major milestone for us in terms of both growth in North America and as I mentioned a few seconds ago, growth in waste and recycling."

In terms of the strategic fit, we've put this into our profile that we shared with all of you back in 2024 in our Capital Markets Day. So in terms of our 6 dimensions and what we seek to be an attractive investment choice, this acquisition, we feel, ticks nicely all 6 of those dimensions.
Scott Phillips, CEO · 2026-07-22

The acquisition is financed with a EUR 900 million debt facility, resulting in a pro forma gearing of about 70%, but management expects this to decline organically. They also intend to report Labrie's purchase price amortization for the order book in items affecting comparability, while the longer-term intangible amortization stays above the comparable line. This is a clear signal that Hiab wants to keep its reported margins clean.

Cost Discipline and Margin Trajectory

Hiab's fixed costs savings program is progressing, with most initiatives implemented by the end of Q2. The full-year benefit is expected to be EUR 20 million, with an annualized run-rate of around EUR 40 million into 2027. The company has been transparent about the phasing: CFO Mikko Puolakka noted, "the cost savings program is progressing according to our plans" and that "most of the actions have been implemented towards the end of quarter 2." This discipline is essential as the company navigates a mixed demand environment—Europe is recovering, but the U.S. remains soft, albeit offset by the ING Cranes acquisition in Brazil. This approach mirrors the tariff pass-through strategy the company has long maintained. As CFO Mikko Puolakka stated on the Q4 2025 call: “we have sticked with the principle that tariff is an extra cost for us, which we move to the customers.” — Mikko Puolakka, CEO · 2026-01-13

Market Dynamics and Outlook

Management characterized the European market as showing a gradual recovery, driven largely by replacement demand, with waste and recycling the strongest sector. In contrast, the U.S. recovery remains skewed toward larger truck classes, leaving smaller chassis demand lagging. Scott Phillips acknowledged this in response to an analyst question: "we haven't seen quite the same level of recovery in the smaller classification of truck chassis." The U.S. softness is expected to persist, but the Labrie acquisition diversifies revenue into a more countercyclical end market. The cautious U.S. stance is a continuation of the narrative from the Q1 2026 call, where Scott Phillips observed: “we are seeing a bit of stability... that the decision-making is still on a similar level.” — Scott Phillips, CEO · 2026-04-24 The company's order book increased to EUR 589 million, up 6% year-over-year, providing good visibility into H2. With the integration of Labrie starting in Q3, Hiab is well-positioned to exceed its long-term margin targets. The introduction of comparable EBITDA metric aligns with the combined company's profile, and management expects the deal to deliver low double-digit millions in synergies. In summary, Hiab's Q2 is not just a beat—it's a strategic inflection point. The acquisition of Labrie and the raised guidance signal confidence in the company's ability to execute its growth strategy while improving profitability.