Order Intake Inflection: Nederman's Q2 Signals a Cyclical Turn

Record orders across divisions suggest the industrial downturn is bottoming, setting up a margin recovery.

NMAN.ST · Earnings Call · 2026-07-16

The Ordering Turn

Nederman's Q2 2026 report was a clear departure from the cautious tone of recent quarters. CEO Sven Kristensson opened the call with a distinctly upbeat note: “The second quarter was encouraging for Nederman and our owners. We saw a clear increase in customer activity and a strong order intake across all four divisions.” — Sven Kristensson, CEO · 2026-07-16 The numbers back this up—total order intake reached SEK 1.48 billion, up 6.3% organically, with record order intake in the company's largest division, Extraction & Filtration Technology. CFO Matthew Cusick highlighted that, in currency-neutral terms, this was the best quarter since the start of the data series. “Total order intake for the quarter was SEK 1.48 billion versus up from SEK 1.425 billion last year. That's currency neutral and organic growth of 6.3%.” — Matthew Cusick, CFO · 2026-07-16 The momentum appears broad-based, with small and mid-size orders driving the inflow—an encouraging signal that underlying demand is recovering rather than being propped up by one-off projects.

Where Growth Is Coming From

The growth is not just a rebound in traditional markets. The company is actively seeding new areas. APAC region is a particular focus, with the opening of sales offices in Korea and Singapore. Management cited the semiconductor industry in Korea as a promising vertical, enabled by recent permits. Sven Kristensson noted, “We continue to advance our innovation agenda through new product development and releases that address our customers' need for cleaner production, improved productivity, and safer work environment.” — Sven Kristensson, CEO · 2026-07-16 This includes the launch of the Gasmet GT7000 Tellus portable gas analyzer, which has already secured initial orders and is expected to improve margins as volumes scale. The company also completed the acquisition of Fume & Dust Control in Australia, strengthening its presence in Queensland and underscoring its ambition in that market. In Process Technology, management sees signs of stabilization in fiber and textile, with particular strength in India, and a growing pipeline of refurbishment projects that typically carry higher margins.

Margin Path

Despite the strong order intake, profitability remains under pressure. Adjusted EBITA came in at SEK 114 million (8.3% margin), down from the prior year, as the effects of weak order intake in January and February weighed on sales volumes. However, the backlog build is substantial. In E&FT, for example, orders received of SEK 716 million exceeded sales by over SEK 100 million. Cusick explained the math: “Basically, we've grown backlog in all three regions, which is pleasing as well. Orders received SEK 716 million is over SEK 100 million more than the sales of SEK 611 million. Adjusted EBITA is only 11% in this division. You can yourselves do the maths. If we have a sales of SEK 715 million, I think we can see a rapid pickup in the EBITDA margin going forwards.” — Matthew Cusick, CFO · 2026-07-16 The company has also been investing in operational efficiency—automation, facility expansions, and solar panels at its Thomasville plant—all of which will provide operating leverage when volumes normalize.

"We have a strong balance sheet, a growing presence in attractive markets and segments, and we continue to invest in operational excellence and innovation.
Sven Kristensson, CEO · 2026-07-16

"The margin weakness is largely a function of timing; with orders now converting, the recovery is set to flow through in the coming quarters.

From Hesitation to Confidence

This quarter stands in stark contrast to the previous calls, where management repeatedly described customer hesitation. In Q1 2026, Sven Kristensson had said: “The impact is very hard because the biggest impact is the hesitation and what we've seen, the hesitation to sign larger contracts.” — Sven Kristensson, CEO · 2026-04-17 Tariffs were a recurring theme, but CFO Matthew Cusick had downplayed their effect: “The tariff--if you think in relation to tariffs, the tariffs are not making a huge effect. The tariffs affect our costs by around SEK 5 million per quarter.” — Matthew Cusick, CFO · 2026-02-13 Now, the narrative has shifted to one of bottoming and recovery. The good order intake across Filtration Technology and all divisions suggests that the industrial cycle is turning. While management remains cautious about forecasting a broad market recovery, the combination of record orders, strategic investments in growth geographies, and a favorable cost structure positions Nederman to capitalize on the upswing. As Kristensson concluded, “Although it's difficult to forecast the broader market recovery, our strategic direction is clear.” — Sven Kristensson, CEO · 2026-07-16 The quarter provides tangible evidence that the company is not just waiting for the tide to turn, but actively building the foundations for sustainable growth.