CEO statement

“New advances for Lagercrantz”

The third quarter of the financial year saw further advancements for Lagercrantz. Business volume, earnings performance, cash flow, and contributions from acquisitions strengthened an already positive trend. The Group’s consistent growth over many years has now led, for the first time, to total net revenue of more than SEK 10 billion over a 12-month period with a high EBITA margin of close to 18%. Cash flow was also strong, and we have completed 12 acquisitions in the past twelve months which will add just over 15% to the Group’s total revenues. 

With this strong performance, we feel confident about the future and have therefore decided to raise our ambitions. Having a successful ‘buy and build’ strategy, or in other words being an ‘acquirer and developer’, of niche technology companies is an attractive business concept that we have extensive experience of, and we have shown along the way that our working method and our corporate philosophy are successful. The earnings growth rate is well in line with our goal of reaching SEK 2 billion in EBT within 5 years which was communicated in autumn 2023. We have now also set new ambitions regarding our EBITA margin, where we want to reach 20% within 2–3 years and P/WC where we should consistently be above 60%. This means upward adjustments from the previous levels of >15% EBITA margin and P/WC >45%.

Businesswise, the quarter was successful where the trends from previous periods were reinforced. Most of our divisions contributed with strong earnings and improved margins, which was mainly driven by high value creation in existing units and good profitability in recently acquired companies. Our long-term performance demonstrates the strength of our business model which gives us flexibility to handle varying economic conditions, and where periods of lower organic growth can be offset by more acquisitions. Our many subsidiary management teams act with accountability, businessmanship and a willingness to change – in line with our corporate philosophy of decentralisation, simplicity, freedom and accountability.

Acquisition activity remained high. In the past 12 months, we have welcomed twelve new, niche and highly profitable businesses to the Group, which add combined annual revenue of more than MSEK 1,400. During the third quarter, the Swedish companies Sit Right and Enskede Hydraul were added, two leading players in products and aftermarket parts for forestry and construction machinery in Europe. In addition, we acquired I Holland in the UK, a world-leading manufacturer of premium tablet compression tools for pharmaceutical tablet manufacturing, which broadens our exposure to a new and attractive growth segment. Lagercrantz continues to have a strong financial position with the scope for further acquisitions. The acquisition situation is still positive, and we have several attractive transactions under evaluation.

Outlook

Looking ahead, we remain optimistic about the coming quarter. Despite the geopolitical uncertainty, the market landscape is expected to remain stable, with a gradual improvement in our main markets in northern Europe, even though the construction sector continues to show low growth. We will continue our chosen path, with high ambitions, continuing to build a strong technology group with leading positions in expansive niches. The Group’s broad exposure with niche B2B technology companies in attractive and sustainable sectors, such as electrification, infrastructure and security & safety solutions, provides both stability and good growth opportunities. 

6 February 2026

Jörgen Wigh
President and CEO