Garo Ab · OMXSTO:GARO
Garo Ab — Garo Aktiebolag — Q1 2026 Earnings Presentation
24 slides from Garo Ab's earnings presentation, May 13, 2026
Slide 1: Interim report January - March 2026
Interim report January - March 2026 GARO implementing several strategic changes
Slide 2: GARO implementing several strategic changes
GARO implementing several strategic changes JANUARY – MARCH 2026 1 Jan –Mar Jan –Mar +/ - R12 Jan –Dec GARO GROUP • Net sales amounted to MSEK 246.2 (264.8). 2026 2025 % 2025 • Net sales declined 7% ( -9). Net sales, MSEK 246.2 264.8 -7 1,024.9 1,043.5 • Operating EBIT 1 amounted to MSEK -13.3 (0.4)
Slide 3: CEO Joe Ree's comments on the quarter
CEO JOE REE’S COMMENTS ON THE QUARTER The Group’s sales for the first quarter amounted to MSEK 246 MARKET CONDITIONS (265). The weak start to the year was due to the current Ongoing geopolitical events are creating uncertainty in the economic climate as well as an unusually cold spring that market,
Slide 4: Several strategic decisions made
SEVERAL STRATEGIC DECISIONS MADE GARO RELOCATES PRODUCTION FROM POLAND TO SWEDEN REVIEW OF THE PRODUCT PORTFOLIO A n important decision concerns our production operations in Poland. In 2026, production will gradually At the same time, GARO’s product portfolio is undergoing a major review to reduce t
Slide 5: Earnings
18% Earnings ALLOCATION OF NET SALES by business area, Jan –Mar 2026 82% NET SALES Net sales amounted to MSEK 246.2 (264.8), down 7% compared with the year -earlier quarter. Sales in GARO Electrification amounted to MSEK 201.1 (204.2), while sales in GARO E -mobility amounted to MSEK 45.1 (60.6). GA
Slide 6: Cash flow and investments
NET SALES, GROUP 450 1500 400 CASH FLOW AND INVESTMENTS 1300 350 Cash flow from operating activities before changes in working capital amounted to MSEK -5.3 (9.5) for the quarter. Cash flow 300 from operating activities after changes in working capital for the quarter amounted to MSEK -7.5 (0.5). 11
Slide 7: Events after the end of the quarter
EVENTS AFTER THE END OF THE QUARTER • A corporate consolidation will be implemented at GARO in May, integrating the GARO Elflex and GARO Montage subsidiaries into GARO AB. This means a clearer, more cohesive business partner for customers (see the separate press release). • After the end of the quar
Slide 8: GARO Electrification business area
NET SALES AND EARNINGS GARO Electrification business area During the quarter, net sales in the business area amounted to MSEK 201.1, which was down MSEK 3 compared with the year -earlier quarter. Sales in the Swedish market were in line with last year, while sales declined 2% and 5% in the rest of t
Slide 9: GARO E-mobility business area
GARO E -mobility business area GARO E -MOBILITY KEY Jan –Mar Jan –Mar R12 Jan –Dec FIGURES 2026 2025 2025 NET SALES AND EARNINGS During the quarter, net sales in the GARO E -mobility business area amounted to MSEK 45.1 (60.6), resulting Net sales MSEK 45.1 60.6 209.0 224.6 in reduced growth of 26%.
Slide 10: GARO's financial targets
GARO’s financial targets SALES GROWTH PROFITABILITY RETURN Organic growth will amount to not less than The EBIT margin for the Group will amount to not less than 10% Return on equity will amount to not less than 20% over 10% over a business cycle. of net sales over a business cycle. a business cycle
Slide 11: Overview
Overview NATURE OF OPERATIONS GARO develops, manufactures and markets innovative products and systems for the electrical installations BUSINESS AREAS market under its own brand. Operations are carried out in several countries, with the Group organized in GARO divides its operations into two business
Slide 12: Condensed consolidated statement of comprehensive income
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Amount in MSEK Jan –Mar 2026 Jan –Mar 2025 R12 Jan –Dec 2025 Operating income Net sales 246.2 264.8 1,024.9 1,043.5 Other operating income 1.8 0.8 3.9 2.5 Total operating income 247.9 265.6 1,028.8 1,046.0 Capitalized production costs 0.3 0.3
Slide 13: Condensed consolidated statement of financial position
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION Mar 31, Mar 31, Dec 31, Amount in MSEK Mar 31, 2026 Mar 31, 2025 Dec 31, 2025 Amount in MSEK 2026 2025 2025 EQUITY AND LIABILITIES ASSETS Share capital 20.0 20.0 20.0 Fixed assets Other reserves 11.6 11.3 9.8 Intangible assets 107.3 121.4 108.4
Slide 14: Condensed consolidated statement of changes in equity
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Equity attributable to shareholders in the Other Share Retained Total Parent Company Reserves contribute capital earnings equity Amount in MSEK d capital Equity at January 1, 2025 20.0 19.9 1.5 514.1 555.5 Net profit for the period 0.4 0.4 Other
Slide 15: Condensed consolidated cash-flow statement
CONDENSED CONSOLIDATED CASH -FLOW STATEMENT Jan –Mar Jan –Mar Jan –Dec Amount in MSEK R12 2026 2025 2025 Cash flow from operating activities EBIT -13.3 -2.5 -18.8 -8.1 Depreciation/amortization and impairment 12.9 13.6 53.2 53.8 Interest paid/received, income tax and adjustment for non -cash items -
Slide 16: Condensed parent company income statement
CONDENSED PARENT COMPANY INCOME STATEMENT The Parent Company’s operations comprise sales in the product area Electrical distribution products, product development, Group Management, Group -wide functions and the Group’s finance function. Net sales for the Parent Company in the first quarter amounted
Slide 17: Condensed parent company balance sheet
CONDENSED PARENT COMPANY BALANCE SHEET Amount in MSEK Mar 31, 2026 Mar 31, 2025 Dec 31, 2025 ASSETS Fixed assets Intangible assets 4.1 2.9 3.3 Tangible assets 21.3 18.3 20.4 Participations in Group companies 100.8 102.2 101.2 Other financial assets 84.5 87.7 88.0 Total fixed assets 210.8 211.1 212.9
Slide 18: Business areas
BUSINESS AREAS GARO divides its operations into two business areas and segments: GARO Electrification and GARO E -mobility. SALES AND EBIT BY BUSINESS AREA QUARTERLY FIGURES GARO Electrification GARO E -mobility Elimination Group Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 External sales per Business area information Q
Slide 19: GARO Group multi-year overview
GARO GROUP MULTI -YEAR OVERVIEW* Jan –Mar Jan –Mar R12 2025 2024 2023 2022 2021 2020 2026 2025 Net sales MSEK 246.2 264.8 1,024.9 1,043.5 1,152.0 1,369.9 1,390.5 1,295.8 1,039.8 Growth % -7 -9 -9 -9 -16 -1 7 25 3 EBITDA MSEK -0.4 11.1 34.3 45.8 0.6 99.6 188.8 243.0 163.2 EBITDA margin % -0.2 4.2 3.3
Slide 20: Key figures and definitions
Key figures and definitions The performance measures in this report take into account the nature of the operations and are deemed to provide relevant information to shareholders and other stakeholders and also enable comparability with other companies. EBIT: Earnings before interest and tax EBIT mar
Slide 21: Alternative performance measures
Alternative performance measures GARO uses certain financial measures – alternative performance measures – that are not defined in the rules for financial reporting that GARO applies. The goal of these performance measures is to create a better understanding of how the operations are performing. Inv
Slide 22: Organic growth
Organic growth: Organic growth with adjustments for currency effects from operations in Net debt: Net debt is defined by how large financial borrowings are in the company in absolute currencies other than SEK. This performance measure is expressed as a percentage of the terms less cash and cash equi
Slide 23: Working capital
Working capital: GARO’s working capital comprises a major part of the value in the balance Return on capital employed: This performance measure is defined as EBIT for the past 12 sheet for which the performance measure is defined as the total of current assets less cash and cash months divided by ca
Slide 24: Economic information
Economic information INVITATION TO PRESENTATION FOR THE PRESS AND ANALYSTS On May 13, 2026 at 3:00 p.m., Interim President and CEO Joseph Ree and CFO Helena Claesson will present the report and respond to questions in a teleconference. Telephone numbers: Sweden: +46 10 884 80 16 International: Globa