This morning, Columbus released its Q2 2026 Interim Report. Revenue grew 2% to DKK 420m, marking a return to year-on-year growth after several quarters of decline, while EBITDA of DKK 17m corresponded to a margin of 4.0%, unchanged from Q2 2025 and below the company's own expectations for the quarter. For the first half, revenue declined 1% to DKK 838m and the EBITDA margin was 5.1% against 7.4% in H1 2025, reflecting the weak start to the year.

At the Q1 presentation in May, management put efficiency at the centre of the case, describing it as the main KPI, pointing to a five percentage point improvement from January to March, and stating that a healthy range is 65-70% with April already at the lower end. On that measure, Q2 delivered: efficiency came in at 65%, the highest level in five quarters, with average FTEs down to 1,422 from 1,492. The disappointment is that this did not reach the bottom line. The combined contribution margin fell to 18% from 19% in Q2, and to 18% from 22% for the half year, which Columbus attributes to intense competition on major new project wins.

By Business Line, Dynamics 365 returned to growth with service revenue up 1%, driven primarily by project wins in Norway, with the contribution margin broadly stable at 20% (Q2 2025: 21%). M3 declined 3% and saw its contribution margin drop sharply to 13% from 21% on project postponements in the US and Norway combined with increased sales effort. Digital Commerce declined 8% but improved its contribution margin to 14% from 12% on continued rightsizing. Data & AI grew 40% with the contribution margin recovering to 8% from 4% a year ago, and from just 1% in Q1, broadly in line with management's Q1 message that the margin dilution was a function of a large intake of new consultants and would return. EIM grew 28% with a contribution margin of 35%.

Geographically, the picture tracked management's Q1 commentary only partly. Norway again stood out with service revenue up 52% (H1: +38%), Germany grew 37% and the US 6%, with Dynamics 365 in the US up 56%. The UK, which management in May expected could see significant contracts starting during Q2, reported a 1% decline, or 4% growth adjusted for currency. Conversely, the two units the CEO singled out as most in need of improvement, Dynamics in Sweden and Denmark, did not deliver: Swedish service revenue fell 8% and Danish service revenue fell 12%, both driven by Dynamics 365. Recurring revenue declined 5% to DKK 56m, equal to 13% of revenue.

Guidance of 0-5% organic growth and an 8-10% EBITDA margin is maintained, supported by the improved pipeline and order backlog.

We note that this implies H2 EBITDA of roughly DKK 85-125m against DKK 50m in H2 2025, corresponding to an H2 margin in the region of 11-15% versus 5.1% in H1. Even the low end of guidance therefore requires H2 profitability to roughly double year-on-year.

Two other items are worth monitoring. Operating cash flow was negative at DKK 38m in the quarter and DKK 41m for the half year (H1 2025: positive DKK 35m), with trade receivables up to DKK 354m from DKK 271m at year end as extended payment terms were required for a number of new major customers, leaving cash at DKK 25m and bank debt at DKK 163m. And on Digital Commerce, where we flagged narrow goodwill headroom after Q1, the impairment test now confirms positive headroom and no impairment.

Columbus hosts a webcast and conference call today at 13:00 CEST. Focus will be on the pricing of new contract wins and whether the contribution margin pressure is a transitional cost of returning to growth or a more persistent feature of the current market, on the path from 65% to the 70% efficiency target, on what is required for Sweden and Denmark to turn, and on the bridge from an H1 margin of 5.1% to full-year guidance. We will also be looking for further colour on working capital and on the new strategy expected in early November.

Sign up here and ask questions:

https://www.inderes.dk/videos/columbus-presentation-of-interim-report-q2-2026

Disclaimer: HC Andersen Capital receives payment from Columbus for a Digital IR subscription agreement. /Michael Friis, 10:35, 19 August 2026.