Ratos: Deleveraging, Divestments, and a Strong Quarter

Q2 2026 was a standout quarter for Ratos. Net sales grew 3.4%, adjusted EBITA rose 14% to SEK 988 million, and adjusted EPS jumped 20% to SEK 1.97. The company delivered its third consecutive quarter of organic growth and a cash conversion above 100%. CEO Gustaf Salford opened the call by emphasizing the strength across the portfolio. “Q2 was a strong quarter for Ratos. We delivered profitable growth in what is typically the largest and most important quarter of the year.” — Gustaf Salford, CEO · 2026-07-17 The results were driven by solid development in industrial products and signs of stabilization in industrial services.

Portfolio reshaping accelerates

A key theme this quarter was the continued execution of the Ratos 2030 strategy, including active portfolio management. The company reduced its ownership in Sentia from 40% to 31%, a move that both generates cash and aligns with its long-term ownership ambition. CFO Anna Vilogorac noted that “Worth remembering that as of Q3, we will no longer have this large bridge item.” — Anna Vilogorac, CFO · 2026-07-17 The sale, combined with a SEK 200 million M&A insurance payout from the Expin Group transaction and a Sentia dividend, flooded the balance sheet with cash. Anna reported that “I just wanted to remind you a different perspective to take here is Ratos has successfully during the past 12 months received non-recurring cash items amounting to SEK 1.6 billion.” — Anna Vilogorac, CFO · 2026-07-17 This allowed the company to repay SEK 800 million of debt, driving net debt/EBITDA down to 1.0x, well below its 1.5x–2.5x target range.

The divestment process for non-core consumer companies continues, and management is keeping all options open. When asked about a plan B if attractive offers don't materialize, Gustaf Salford replied:

We always have a plan B. We always think through all the different scenarios going forward, it's important to say that the focus here now and what we aim to deliver on is the divestment path.

Operational highlights: defense strength and services stabilization

On the operational side, Diab continued its impressive run, delivering 16% organic growth, propelled by defense segment demand. The company is benefiting from higher volumes, lower depreciation, and deliberate pricing actions in the wind segment. However, CFO Vilogorac warned that some of these tailwinds will fade in the second half of 2026. "That effect is also going to tail off as we approach the second half of 2026," she said in the Q&A.

In industrial services, Knightec's decline is flattening out, with management emphasizing stabilization rather than recovery. The company is reallocating resources toward growth areas like defense and energy. Speed, while still a drag on EBITDA, moved to black numbers and improved sequentially as its automation rollout progresses. The automation project in Speed is a key investment for future efficiency, though it will continue to weigh on profitability through Q3 and Q4. As CEO Gustaf Salford remarked in the prior quarter, “Right now, we are in a very exciting phase where we start to go live with these projects and these new solutions.” — Gustaf Salford, CEO · 2026-02-16

Balance sheet flexibility and outlook

The balance sheet now offers significant financial flexibility. With leverage at 1.0x, the company has ample room for add-on acquisitions and organic investments. In prior quarters, management had already flagged its willingness to consider buybacks, but the focus remains on M&A. As CFO Vilogorac said then: “Of course, again, it's a discussion that is being had at the Board level, of course. So we are constantly evaluating how to allocate capital in the best way possible.” — Anna Vilogorac, CFO and IR · 2026-05-04

Looking ahead, Ratos is cautiously optimistic. The CEO mentioned that "we don't see huge improvement going forward" in the technical consulting market, but the portfolio is better positioned. The company is also heavily exposed to the Nordics, where underlying demand is showing signs of stabilization.

In summary, Q2 2026 was a quarter of profitable growth, aggressive deleveraging, and strategic portfolio rationalization. Ratos is transforming into a more focused, capital-efficient investment company, and the market is likely to reward the clarity and the strong cash generation.