Bufab has reported improved financial results for Q1 2026, with its adjusted EBITA up 22.4% year-on-year.
The company’s adjusted EBITA for Q1 2026 reached SEK 340 million, up from SEK 278 million in Q1 2025, representing a 22.3% increase. Net sales for the quarter totalled SEK 2,222 million, rising from SEK 2,184 million in Q1 2025, corresponding to organic growth of 2.2% compared with the same period last year, with positive development in three of the five regions. The organic growth was mainly driven by volume increases.
“Bufab starts the year with a strong first quarter. We continue to execute our strategy with a strong focus on value creation for customers. This is achieved, among other things, by strengthening our offering in customised full-service solutions, sustainability and logistics solutions,” said Erik Lundén, President and CEO of Bufab.
In the UK and Irish markets, which account for 16% of the company’s total sales, net sales decreased by 12.2% to SEK 351 million, while organic growth was -3.8%.
The company added that the decline in organic growth was attributable to low demand in the manufacturing industry, impacting both Bufab UK and Bufab Ireland. Lower market prices also adversely impacted Apex Stainless Fasteners. Weak confidence in the UK construction market, combined with unfavourable weather, resulted in lower sales at TIMCO.
In the Northern and Eastern Europe markets, comprising Sweden, Finland, Norway, Denmark, Poland, Hungary, Romania, the Baltic States and Slovakia, sales growth amounted to -1.3% in the quarter, while organic growth was 1.7%. Market conditions remain uncertain and vary by country and customer segment. Positive development was noted in Finland and Sweden, while Denmark continued to experience weak demand. Demand in the furniture and kitchen sector remained low, while demand in defence and digital infrastructure was strong.
In contrast, the Western Europe market, comprising the Netherlands, Germany, the Czech Republic, Austria, Switzerland, Spain, Türkiye and Italy, recorded sales growth of 24.7% in the quarter, with organic growth at 6.3%. Of the total growth, 23.7% was attributable to the acquisition of the Novia Group. Organic growth was driven by strong performance in France, Spain, Türkiye and the Czech Republic, supported by increased market share and an improved product mix. Strong demand was noted in the mechatronics, aerospace and defence sectors. Adjusted EBITA for Q1 2026 in this region was SEK 114 million, up from SEK 81 million in Q1 2025.
Looking ahead, Lundén said that although Bufab is not directly affected by disruptions from the war or unrest in the Strait of Hormuz, the company is experiencing increased freight costs and continued customer caution as risk factors, as similar developments have historically had a dampening effect on demand.
“The uncertain market situation does not affect our priorities going forward. We are well on track to reach our margin target and will continue our work to deliver on our strategy, focusing on what we can control: gaining market share, gradually improving our gross margin and cost base, and delivering strong cash flow. This leaves us well positioned for profitable growth when demand returns,” he added.
