On the right track

Comments from CEO Per Sjöstrand on the first quarter 2026:
Things are starting to happen. The positive trend reported in the fourth quarter continued in the early part of 2026. Both the market and our own business are moving in the right direction, although the improvement remains uneven.

Signs of a gradual market recovery are now more evident than in 2025. Overall, we are seeing higher levels of activity, although variations across regions and customer categories remain significant. Several segments of the market are performing well, but uncertainty remains high and the development is expected to be uneven. Seasonal effects led to low activity in the first two months, partly offset by a strong end in March.

There has been a significant increase in our order backlog for the quarter across all three countries in which we operate. This is accompanied by positive organic growth and higher EBITA, both in absolute terms and in the margin.

Our initiatives are paying off
Over the past six months, we have worked systematically to strengthen governance, control and accountability across the entire organisation. Initiatives launched during the autumn and in connection with our work with Instalco 2.0, are now starting to yield results. This is reflected in improvements across several areas of the business, including project execution, monitoring, and a stronger focus on profitability and cash flow.

Progress is in line with our expectations. Our Instalco 2.0 journey has only just begun, but we are already seeing our efforts pay off, not least through close dialogue with our subsidiaries, where the business is run.

We took significant steps in September, transitioning to a country-based organisation. As of 1 January, our financial reporting is carried out on a country basis: Sweden, Norway and Finland. The change enhances our ability to monitor the business, while strengthening accountability at country level. In the midst of these changes, we remain committed to our core strengths: local entrepreneurship, close customer proximity and decentralised decision-making.

Fewer negative deviations and better control
This quarter last year was affected by the recognition of a major impairment loss related to a large customer’s bankruptcy. Even taking that into account, the underlying trend remains positive.

Over the past year, our efforts have focused on project selection, risk assessment and early follow-up. We will always have to manage losses on accounts receivable and adjust our forecasts – it is part of the business. Our aim, however, is to limit such losses and identify them at an earlier stage. A year ago, the quarter was marked by a few major problem projects and write-downs. Today, we see fewer significant deviations and better control.

Building the next platform
In parallel with developing and improving our existing business, we are establishing new platforms in areas where there is strong structural growth. One example is Inmatiq, focused on property automation and launched in 2024 through our bespoke start-up model.

The demand for improved energy efficiency, digitalisation and smarter property automation continues to increase. In 2025, Inmatiq took important steps forward, establishing partnerships with leaders in this field, like for example Schneider Electric. They achieved an important milestone during the period in the form of its first quarter without a negative impact on earnings.

Stronger cash flow unlocks new opportunities
We once again reported strong cash flow in the quarter. Alongside improved earnings, our financial position strengthened, and our leverage declined. Strong cash flow and a healthy balance sheet not only provide stability but also unlock opportunities to develop Instalco over the long term.

Subsequent to the end of the quarter, we completed the acquisition of TSM Taksäkerhetsmontörerna. It is a good example of the type of strategic acquisitions we aim to make going forward. TSM, together with our subsidiaries Highcon and Enter Ställningar, creates a nationwide platform in scaffolding, weather protection and safety solutions.

We will continue to prioritise acquisitions that strengthen our strategic position and create long-term value. Our focus is on selective acquisitions in niches where we can strengthen our market position, broaden our offering and build value over time.

We are on the right track
We are aware that a high degree of uncertainty remains, both in the market and in the world around us. Change takes time – and our journey has only just begun. That said, I am confident that we are on the right track.

Our actions are proving effective, and step by step we are moving closer to our long-term goals.

The full quarterly report: https://instalco.se/en/investors/reports-and-presentations/