Alfa Laval Corporate AB (ALFA) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello, and welcome to Alfa Laval's First Quarter Report. Fredrik and I will share some time going through the details. Because of today, we also have an AGM starting relatively soon. We need to limit this call to forty five minutes. So our apologies if our Q and A session is slightly short. With that, let me, as always, go to some first introductory comments before moving on to the presentation. So first, overall, we felt we had a stable quarter well in line with our expectations. A pattern of a strong transactional business and a hesitant project business continued in the quarter. Second, the implementation of the new operating model continued in a high pace with adjustments to the financial reporting, management appointments and consolidation in various areas. The financial weight of the changes during this process was limited in the quarter. And then finally, with the war in The Middle East, our main priority has been employee safety in the region and appropriate customer support in difficult times. The financial impact on Alfa Laval was limited in the first quarter. And medium term, the energy crisis may provide both some downsides and some upsides across the world in terms of our customer base. So with that, let me go to the key figures. We started '26 well with order intake growing sequentially and with a 6% organic growth compared to last year. Sales was on the low side partly because of a very high invoicing towards the end of twenty twenty five. Despite the lower invoicing and big currency movements, the margin improved slightly to above 18%, mainly due to positive mix. Moving on to the Energy Division. Demand was as expected on a very high level across many end segments and with a continued recovery of volumes in HVAC, including the heat pump market. The da...