Read President and CEO Johan Hjertonsson's comments from Latour's latest interim report.
January - March 2026
A positive start despite a turbulent global environment
Latour’s industrial operations have made a strong start to the year, delivering continued organic growth despite a period characterised by geopolitical uncertainty and a macro¬economic environment that remains difficult to assess. During the quarter, the business reported organic growth in both order intake and net sales compared with the previous year, indicating solid underlying demand, even though with varying trends across markets, industries and regions.
While the broader construction landscape remains subdued, particularly in new builds, specific niches like renovation, energy efficiency and infrastructure investments are showing stronger momentum. Several of our business areas are strategically aligned with these industry trends, offering good opportunities for further growth. This benefits, among others, Swegon, Bemsiq Group and Innovalift, as well as Nord- Lock Group.
The industrial operations’ direct exposure to the Middle East is limited. Sales to the region represent slightly less than 1 per cent of the industrial operations’ total revenues and are principally generated by Bemsiq Group, Innovalift and Nord-Lock Group. To date, no material adverse impact has been observed. Over the longer term, however, indirect effects may emerge, including delivery delays and disruptions to global supply chains. Our current assessment is that the situation will not have a significant financial impact on Latour as a whole. We continue to monitor developments closely and are confident that our operations are well equipped to manage any potential challenges.
Organic growth continues, with profitability in line with corresponding quarter last year
During the quarter, order intake decreased by 1 per cent, representing organic growth of 5 per cent. Net sales decreased by 1 per cent, of which 4 per cent was organic growth. The order book increased to SEK 7,409 million at the end of the quarter, providing a solid basis for net sales growth in the coming quarters. We are pleased by the continued strong organic growth in both order intake and net sales during the quarter. First-quarter adjusted operating profit amounted to SEK 886 m (902 m), with an operating margin of 13.2 (13.2) per cent, which is considered satisfactory given that the first quarter is typically seasonally weaker. Currency effects continued to have a negative impact compared with the previous year. At the same time, the quarter’s results reflect the strength of our decentralised business model and our ability to adapt the cost base in a more uncertain market environment. Cash flow was initially rather subdued, largely consistent with typical seasonal patterns. Cash flow from operating activities reached SEK 177 m (436 m).
To sum up, we are well-equipped to navigate global economic uncertainty. Robust market positions, continuous cost discipline and a proactive focus on profitability and cash flow provide the framework to sustain the long-term growth of our industrial operations, even against a more challenging market backdrop.
Long-term ownership and high acquisition activity
Latour’s long-term ownership perspective and financial strength enable continued investment in operational improvements and growth initiatives, even in broader market instability. Levels of acquisition activity are high and the pipeline is well filled. During the first quarter, we completed two acquisitions. Since the end of the reporting period, we have acquired an additional business and entered into an agreement for a further acquisition. More information about our acquisitions can be found on page 4.
Subdued stock market performance
Public stock markets faced significant pressure in the first quarter, primarily driven by heightened geopolitical uncertainty in the Middle East and its subsequent global impact. Latour’s portfolio of listed holdings decreased by 9.0 per cent during the period. By comparison, the benchmark index SIXRX decreased by 1.2 per cent.
The listed holdings in our portfolio that have reported first-quarter results to date present a mixed picture, with currency effects and an uncertain demand environment in certain segments and markets continuing to pose challenges.
Johan Hjertonsson
President and Chief Executive Officer
Johan Hjertonsson
President and CEO