Afry Ab (AFXXF) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello everyone and welcome. Thank you for joining us today as we present Afry's results for the first quarter of twenty twenty six. I am Linda Polson and I am the CEO of Afry. I will begin with some highlights from the quarter before handing over to our CFO, Bo Sandstrom. And after that, we will open the line for questions. In Q1, our strategy execution continued to progress according to plan. Our order backlog grew 6.4% year over year to SEK21.5 billion, which is a testament to the strength of our client offerings and our focus on sales execution. Our strong order backlog position us well to drive profitable growth in line with our strategy going forward. In the quarter, we improved profitability with an EBITA margin that increased to 7.5% from the calendar adjusted margin of 7.1% in Q1 last year. This was mainly driven by a continued positive development of the utilization rate, which improved 1.1 percentage points. We saw strong performance in our global division Energy and Industry, while results in Transportation and Places were weaker. Net sales declined 4.3% organically in the quarter and that is mainly a result of a challenging market and the capacity adjustments we have made over the past year. Global uncertainty remained high at the beginning of the year, which continues to impact the market conditions in some of our segments. As we conclude the first quarter, we are now approaching the end of a comprehensive restructuring phase, aimed at optimizing our capacity and portfolio. With steady development in Q1, we are moving in the right direction and we will continue to execute our strategy to reach the performance levels we are targeting. We then go into the divisions and let's begin with energy. Here we see a continued favorable market across the sector, whi...