Sdiptech AB (publ)

Reported Q2 net sales were SEK 1.269 billion, up 14% year over year, including 11% organic growth, about 4.5% from M&A, and a -2% currency effect. Adjusted EBITDA was SEK 258 million, up 11% year over year, with 5% organic growth, a -1% currency effect, and 6.5% from M&A. Adjusted EBITDA margin was 20.3% versus 20.9% last year. On a rolling 12-month basis, the group reported SEK 4.7 billion in revenues, SEK 988 million in adjusted EBITDA, and a 21.2% adjusted EBITDA margin. Cash conversion was 70% in Q2 and 90% over the last 12 months, and leverage was 2.8x. For Water & Bioeconomy, management guided to roughly 21%-22% margin going forward. For M&A, management said it aims to reach about SEK 100 million on a run-rate acquired EBITDA basis for 2026, with current acquired EBITDA around SEK 35 million from the two Q2 deals.

Anders Mattson framed the quarter as proof that Sdiptech’s portfolio is benefiting from structural demand in infrastructure, electrification, safety, and related niches. He emphasized that the divestment program is now complete and that capital will be reallocated toward new acquisitions, while keeping a disciplined focus on return on capital employed. His tone was constructive and confident, but not exuberant: he repeatedly stressed selective M&A, pricing discipline, and the need to keep improving margins and capital efficiency over time.

Bengt Lejdström focused on cash flow, working capital, and leverage. He said free cash flow has been a bit higher in the first half than target, with an internal CapEx ceiling of 3% of sales versus 4% so far, though he expects CapEx to be more modest in the second half. He cited roughly SEK 80 million of working-capital increase in the quarter, about SEK 20 million of net negative effects from divestment-related items and earn-out adjustments, and leverage of 2.8x including earn-outs, still below the 3x ceiling. He also noted that the company wants M&A funded primarily by its own cash flow and that the 2026 acquired EBITDA run-rate target is around SEK 100 million.

Analysts pressed management on Water & Bioeconomy profitability, where Anders said margins are not expected to keep improving sequentially and instead should settle around 21%-22%, with some sub-businesses still having growth potential. Questions also focused on Supply Chain & Transportation pricing, backlog, and whether delivery strength reflected catch-up shipments; management said there were no major raw-material cost increases, freight has been somewhat volatile, and some companies intentionally reduced backlog to improve lead times. On M&A, management said the two Q2 deals added about SEK 35 million of EBITDA and that the ambition is to reach roughly SEK 100 million in 2026 while staying within the 3x leverage limit.