Kesko's technical trade engine accelerates as Dahl acquisition looms
Q2 profit jump driven by Onninen; grocery market share gains continue; big Nordic expansion ahead.
KESKOA.HE · Earnings Call · 2026-07-22
Technical trade takes the wheel
Kesko's Q2 2026 results were, by the CEO's own framing, about one thing: “Kesko's profit improved significantly. Technical trade as the driver is our headline.” — Jorma Rauhala, CEO or top executive presenting Q2 results · 2026-07-22 The division's comparable operating profit rose by €20.3 million to €71.2 million, and the momentum is unmistakable in Onninen sales — Finland's like-for-like growth hit 16.1% against a competitor average of just 0.6%. This is not a cyclical rebound story; it's a share-grabbing, structurally improving technical trade franchise. The company has now generated a 4% margin even at the low point of the cycle, well above the 1% margin when Onninen was first integrated in 2016. As Jorma Rauhala put it, "We have a strong track record in technical trade with Onninen, and we can show clear proof of improving Onninen sales and results." The growth in technical trade is broad-based across product areas and geographies, supported by energy transition, digitalization, and infrastructure demand.Grocery: share gains with discipline
The grocery division continued its quiet march. Market share in Q2 was up 0.8 percentage points, the strongest quarter in the current turnaround, and the division held its operating margin at 6.8% despite continued price investments. In response to an analyst question about the margin resilience, Rauhala noted: “our grocery business is in very good shape, very positive that we gained so much market share even more than we expected” — Jorma Rauhala, CEO or top executive presenting Q2 results · 2026-07-22. A key contributor is Retail Media, which Ari Akseli called "absolutely relevant part of the profit in the grocery division." The combination of data-driven campaign efficiency and a disciplined price program is allowing Kesko to gain share without conceding profitability — a recurring theme from prior calls. In February, Rauhala had said: “all in all, I have to say that I'm very, very pleased what comes to our grocery division” — Jorma Rauhala, Executive · 2026-02-05. The market share trajectory is now clearly positive, and the company expects the store network to have a neutral impact in 2026, implying organic gains.Car trade and the order book
Car trade was the one soft spot, with profit down €3.2 million as used-car mix diluted margins. But management's confidence in H2 rests on a tangible lead indicator. “our order book is now 40% stronger than it was a year ago at the same time. So latter part of this year will be very strong when it comes to new car sales.” — Jorma Rauhala, CEO or top executive presenting Q2 results · 2026-07-22 The division also saw used-car sales up 11.9% against a market decline of 2.8%, and services continued to grow. This is a classic cyclical inflection: the order book has been building for quarters, and the payoff is expected in Q3–Q4.The Dahl bet and guidance
Perhaps the most consequential news was the acquisition of Dahl's operations in Sweden, Norway, and Denmark from Saint-Gobain. Rauhala called it "the strategic dream target" and confirmed its strategic fit: “Dahl fits our current technical trade extremely well.” — Jorma Rauhala, CEO or top executive presenting Q2 results · 2026-07-22 The combined net sales of ~€2.1 billion would make Kesko's Building & Technical Trade division a €6.8 billion platform, significantly strengthening its position in the Nordics. Management raised the lower end of its profit guidance to €670–730 million, citing stronger-than-expected H1 performance, but kept the upper end intact, reflecting caution on consumer confidence and geopolitical risks. The company noted that the Middle East crisis had minimal Q2 impact and expects only moderate effects in H2. The quarter's headline, however, is the strength of the underlying engine. As Rauhala closed the call:With technical trade compounding share gains and grocery momentum intact, the Dahl acquisition arrives at a moment when Kesko's execution — and its confidence — are both rising.Yes, Kesko is satisfied with the result, EUR 17.3 million EBIT improvement. And in fact, it was the strongest EBIT improvement by quarter since first quarter 2022.