This morning, Columbus released its Q1 2026 Interim Report. Performance for the quarter was below expectations, with revenue of DKK 418m corresponding to a 4% decline, and EBITDA of DKK 26m translating into a margin of 6.3% (Q1 2025: 10.7%). The earnings development primarily reflects a slow start to the year, particularly in January, with weaker-than-expected contribution margins across the Business Lines. 

Importantly, management notes that activity levels improved gradually through the quarter, with a strengthening towards the end of Q1, and that this positive trend has continued into early Q2. This is supported by a strengthened pipeline, solid order intake, and several larger project wins during the quarter, including a new global supply chain partnership with SNS and a major retail win with Stadium. On this basis, Columbus maintains its full-year 2026 guidance of organic revenue growth in the range of 0-5% and an EBITDA margin of 8-10%. Achieving this guidance implies a clear step-up over the remainder of 2026, and will depend on a gradual normalisation of customer investment behaviour combined with execution on the strengthened pipeline.

By Business Line, the picture remains two-sided. Dynamics 365 (the largest segment) declined 8% in service revenue, reflecting continued customer reluctance to commit to large-scale ERP projects, with the contribution margin compressing to 20% (Q1 2025: 26%). M3 delivered a relatively solid performance with service revenue down just 1%, while Digital Commerce declined 9% on continued weakness in the UK and Norwegian retail markets. The growth areas continued to stand out: Data & AI grew 23% in service revenue, and EIM, which is now reported as a standalone Business Line, grew 35% with a strong contribution margin of 52%, supported by expansion into the UK, US and Germany. We note that Data & AI's contribution margin remains low at 1% (Q1 2025: 22%) due to ongoing investments in capabilities, including initiatives such as "Agent in a Day," which we view as appropriate given the long-term opportunity

Geographically, performance varied significantly. Norway stood out with a 26% increase in service revenue, driven by major contract wins in Dynamics 365 and Data & AI. The remaining markets all declined, with Denmark most affected at -15%, followed by UK (-9%, or -3% in constant currency), US (-9%, although Dynamics 365 within the US grew 30%) and Sweden (-7%). Efficiency was 62% in Q1 2026, in line with Q1 2025, and management characterises the current level as unsatisfactory, although a positive trend was observed during the quarter. We note that an indication of impairment was observed within the Digital Commerce Business Line, with the impairment test displaying narrow headroom. No impairment was recognised, but this remains an area to monitor as performance develops through 2026.

Later today, Columbus hosts a webcast and conference call at 13:00 CET. Focus will be on the visibility into the expected step-up in activity through the remaining quarters of 2026, the conversion of the strengthened pipeline into revenue, the trajectory in efficiency, and the continued momentum within the strategic growth areas Data & AI and EIM. We will also be looking for further colour on the customer investment behaviour and whether management sees concrete signs of a more material shift in market conditions. Sign up here and ask questions: https://www.inderes.dk/videos/columbus-presentation-of-interim-report-q1-2026 

Disclaimer: HC Andersen Capital receives payment from Columbus for a Digital IR subscription agreement. /Michael Friis, 09:27, 07 May 2026.