CEO statement

“Purposeful strategy behind strong earnings growth”

Lagercrantz closed a strong financial year, where the positive trend continued also in the final quarter. Profit (EBT) for the full year increased by 17% to MSEK 1,523, which is a new all-time high. The operating margin (EBITA) amounted to 18.1% and earnings per share improved by 18% to SEK 5.81, which also represents new record highs. Cash flow from operating activities amounted to about MSEK 1,500 and continues to provide strong opportunities for future acquisitions. 

The past year

Demand during the financial year was good in most of our prioritized areas, particularly in electrification, infrastructure, security and defence, and niche industrial products, while the construction sector continued to be characterised by lower activity. The broad exposure that Lagercrantz has, both geographically and among different segments, ensures a high degree of stability. In a market situation with fluctuating demand, the decentralised model demonstrates its strength where each subsidiary management team can adapt initiatives and measures to the prevailing situation in its specific submarket.

With annual revenue that is now approaching SEK 11 billion and an EBITA margin of 18.1%, we took further steps during the year towards our new ambition of reaching 20% EBITA within 2-3 years. Most of our divisions contributed with strong earnings and improved margins. The return on working capital also continued to develop at a high level.

The outcome of the year once again confirms that our strategy is delivering results. With improved profitability combined with effective capital allocation and stable cash flow, we are continuing to grow organically and through acquisitions. 

Disciplined strategy and clear business model

Lagercrantz’s successes are the result of a strategy that has been consistently applied over time and executed with discipline. The business concept – to acquire well-run, profitable technology companies and to develop them on a long-term basis – is well-established. The organisational model is based on decentralisation, management by objectives and active ownership without an exit horizon.

Each subsidiary works towards clearly-defined earnings and working capital targets within a structure characterised by decentralised decision-making. This creates a high degree of responsibility and drive even in weaker market conditions. As part of our strategy, we are looking for companies with proprietary products where the proportion has continued to rise during the year and has now reached 80%. This contributes to good margins, improved cash flow and better potential for organic growth. The goal is to increase the total profit by at least 15% per year, which corresponds to doubling our profit every 5 years, where about one third should come from organic growth and two thirds from acquisitions. We have essentially succeeded with this during the past 15 years, and also in 2025/26.

During the financial year, we carried out eight acquisitions with total annual revenue of approximately SEK 1.1 billion. In addition, four further acquisitions were completed during April 2026, which together generate annual revenue of approximately MSEK 300. Overall, this year's results confirm the strength of the business model, our financial discipline and our ability to combine profitable growth with a high pace of acquisitions.

Lagercrantz is a successful ‘buy and build’ group, or in other words a ‘business acquirer and business developer’. We continue to see good acquisition opportunities, not least due to the fact that more and more entrepreneurs and family-owned companies are attracted to our ownership model and that awareness of us is increasing outside the Nordic region. Our strong financial position provides good capacity and we are continuing to invest selectively and with a long-term perspective.

Outlook

Looking ahead to the 2026/27 financial year, I am cautiously optimistic about future developments. Although geopolitical uncertainty has increased further and the construction sector is showing limited growth, we perceive that the market situation is generally stable. We continue to implement our strategy with a clear focus on profitable growth, effective capital allocation and long-term value creation.

Finally, I would like to extend a big thank you to all our employees. It is thanks to your commitment, sense of responsibility and your willingness to change that we are experiencing such successful performance.    

19 May 2026

Jörgen Wigh
President and CEO