Sdiptech: Divestment Program Complete, Growth and Data Center Exposure Take Center Stage
Q2 2026: 11% organic sales growth, M&A acceleration, and a portfolio increasingly levered to data center infrastructure.
SDIP-B.ST · Earnings Call · 2026-07-17
Strategic Divestments and a Return to Growth
After a year of portfolio pruning, Sdiptech has emerged leaner and more focused. The completion of an 11-company divestment program, alongside the sale of its remaining elevator business, marks a definitive strategic pivot. “The logic will be that the proceeds from the divestments will be allocated towards new acquisitions going forward.” — Anders Mattson, CEO · 2026-07-17 That capital reallocation is already visible: two acquisitions closed in the quarter (RSS and JLM), adding roughly SEK 35 million in EBITDA, and a strengthened pipeline signals acceleration in H2. Organic sales growth of 11% and adjusted EBITDA growth of 5% underscore the underlying demand across its niche infrastructure portfolio. This is not just cost-cutting; it's genuine momentum. The company's data centers theme is a prime example. While Eagle provides security solutions for data center sites, CFO Bengt Lejdström highlighted “good demand also for companies like Phase 3 and IDE Systems, which provide temporary electricity solutions or connectors, not the least for backup electricity at, for example, data centers.” — Bengt Lejdström, CFO · 2026-07-17 This breadth of exposure—from physical security to power connectivity—places Sdiptech directly in the path of global data center build-out. The company's late-cycle positioning is a deliberate advantage: as Lejdström noted, "If someone announces that we're going to build a big data center in the Nordics, we are not the first one on site taking the revenues from that. We're quite late during those projects."Margin Mix and Structural Confidence
Group adjusted EBITDA margin dipped to 20.3% from 20.9% a year ago, primarily due to the faster growth of the lower-margin Supply Chain & Transportation segment. Yet, within Safety & Security, margins reached the high 30s, buoyed by a favorable mix of service and software. On the sustainability of that margin, Mattson was clear: “We foresee that we will continue at the higher level.” — Anders Mattson, CEO · 2026-07-17 That confidence is echoed in the company's order backlog narrative. GEH and ELAM are delivering on strong backlogs, though some customers deliberately shortened lead times in Q2, which could create a slight air pocket in H2.M&A Acceleration and a Balanced Portfolio
The company's M&A activity is set to accelerate. Bengt Lejdström set a clear target:With a leverage ratio at 2.8x and a 90% cash conversion over the last twelve months (70% in the quarter, within their target band), Sdiptech has the balance sheet firepower. The discipline that underpins this reallocation has been a recurring theme in prior calls. As Mattson said in February, “we have been more prudent and selective where we would like to spend the money.” — Anders Mattson, CEO · 2026-02-10 And in October, CFO Lejdström added, “we have tightened up the process quite a bit.” — Bengt Lejdstrom, CFO · 2025-10-24 That rigor is now being applied to growth, not just survival. The one soft spot remains Water & Bioeconomy, where adjusted EBITDA fell 9% despite a 5% sales rebound. Management expects margins to "stay around 21%-22% going forward," a reset from historical highs. This is a deliberate investment phase, not a structural decline—executives explicitly framed it as necessary for long-term regulatory and operational upgrades. Sdiptech's transformation is compelling: a streamlined portfolio, accelerating M&A, and direct exposure to secular data center demand. The company's return on capital employed remains below its 15% target, but the direction is clear, and the organic growth engine is revving. With a clear runway to its 15% growth target, Sdiptech has re-established itself as a growth compounder in the making.We need to acquire another 10%, and that would mean roughly SEK 100 million for this year.