Earnings call transcript: Addtech posts solid Q2 2026 growth as stock slips

Addtech reported solid second-quarter growth on Thursday, with sales rising 8% year-over-year, driven by both organic growth and acquisitions. The Swedish industrial technology group cited a one-off gain in its Safety business, which boosted headline profit figures, but underlying EBITA growth still came in at 11%. EBITA increased by 17% to a margin of 16.7%, reflecting strong capital efficiency.

The company's workforce spans over 5,000 employees across 20 countries, and it remains well-positioned for future acquisitions due to its low leverage and strong cash generation. However, the market reacted negatively to the earnings report, as the stock fell 2.65% to $316.4 in premarket trading. The decline was primarily attributed to a weaker-than-expected operating cash flow and a one-off gain in Safety, which analysts had anticipated as part of the quarter's performance.

Despite these concerns, Addtech's operating update highlighted continued strength in Automation, Electrification, and Energy, as well as favorable comparisons in Industry and Process. The company expects further improvement in the second half of the year, particularly in Energy, where order intake is projected to convert into sales.

Management remains optimistic about the company's growth prospects, noting a strong business momentum for Energy and well-filled order books in the second half of the year.