Interim Report January–March 2026

Reporting period January–March

• Net sales increased 3.7 per cent to SEK 7,186 (6,933) million. Organically, net sales grew by
  1.2 per cent.
• EBITA increased 6.2 per cent to SEK 1,588 (1,495) million.
• The EBITA margin improved 0.5 percentage points to 22.1 (21.6) per cent.
• Profit before tax grew 7.7 per cent to SEK 1,220 (1,133) million.
• Net profit for the period grew 7.7 per cent to SEK 909 (844) million.
• Earnings per share increased 7.6 per cent till SEK 1.98 (1.84).
• Cash flow from operating activities decreased 3.3 per cent to SEK 747 (772) million.
• Two new businesses were consolidated during the period with total annual net sales of about SEK 180 million.
• Starting in the second quarter of 2026, Lifco will organise itself into five business areas instead of three. This means that the Environmental Technology and Transportation Products divisions, which are part of the Systems Solutions business area, will be reported as business areas as of the interim report for the second quarter of 2026.

Summary of financial performance

Comments from the CEO

Net sales increased 3.7 per cent during the quarter to SEK 7,186 (6,933) million, as the result of acquisitions and organic growth. Demolition & Tools and parts of Systems Solutions grew organically, while the performance in Dental was stable. Within Systems Solutions, the Environmental Technology and Transportation Products divisions reported strong organic growth. Organic growth was impacted by negative exchange rate effects of 5.1%.

During the first quarter, EBITA increased 6.2 per cent to SEK 1,588 (1,495) million, and the EBITA margin improved 0.5 percentage points to 22.1 (21.6) per cent as a result of acquisitions in Dental and Systems Solutions. In Dental and Systems Solutions, the product mix contributed positively to the profitability development, while the product mix in Demolition & Tools had a negative effect.

Earnings per share increased 7.6 per cent to SEK 1.98 (1.84) in the first quarter. Cash flow from operating activities decreased 3.3 per cent in the quarter to SEK 747 (772) million.

During the quarter, Lifco consolidated the UK company Ethoss Regeneration and the Germany company Karl Kaps in Dental. The companies are highly specialised and jointly have sales of about SEK 180 million.

At the beginning of the second quarter of 2026, Lifco has decided to organise itself into five operating segments instead of the previous three. This change is made after many years of strong growth in Systems Solutions through acquisitions and organic growth. Within Systems Solutions, the two divisions Environmental Technology and Transportation Products have become so material that they will be reported as business areas starting with the interim report for the second quarter of 2026. Pages 1920 of this report present sales, EBITA and EBITA margin per quarter 2024–2026 and the full years 2015–2025 for the new business areas Environmental Technology and Transportation Products and Systems Solutions excluding Environmental Technology and Transportation Products. As of the report for the second quarter of 2026, Systems Solutions will consist of the Contract Manufacturing, Infrastructure Products and Special Products divisions. The Dental and Demolition & Tools business areas are not affected by the change.

In February, Lifco issued an unsecured bond loan of SEK 1,000 million, and thereby has bonds outstanding totalling SEK 4,750 million. Lifco’s financial position remains good and interest-bearing net debt amounted to 1.1 times EBITDA at 31 March 2026, which is well in line with our target of interest-bearing net debt of a maximum of three times EBITDA and means that Lifco possesses the financial scope to make additional acquisitions.

Per Waldemarson
President and CEO

GROUP PERFORMANCE IN JANUARY–MARCH
Net sales increased 3.7 per cent to SEK 7,186 (6,933) million. Acquisitions contributed 7.6 per cent and organic growth amounted to 1.2 per cent. Exchange rate effects had a negative impact of 5.1 per cent. During the quarter, the UK company Ethoss Regeneration and the German company Karl Kaps were consolidated.

EBITA increased 6.2 per cent to SEK 1,588 (1,495) million and the EBITA margin expanded by 0.5 percentage points to 22.1 (21.6) per cent as a result of acquisitions in Dental and Systems Solutions. In Dental and Systems Solutions, the product mix contributed positively to the profitability development, while the product mix in Demolition & Tools had a negative effect.

Exchange rate changes had a negative impact on EBITA of 4.7 per cent. During the period, 48 (51) per cent of EBITA was generated in EUR, 14 (16) per cent in SEK, 17 (13) per cent in GBP, 11 (9) per cent in NOK, 6 (4) per cent in DKK, 1 (3) per cent in USD and 4 (3) per cent in other currencies.

Net financial items improved to SEK -80 (-103) million.

Profit before tax grew 7.7 per cent to SEK 1,220 (1,133) million. Net profit for the period grew 7.7 per cent to SEK 909 (844) million.

Average capital employed excluding goodwill increased SEK 168 million during the quarter, to SEK 4,938 million at 31 March 2025, compared with SEK 4,770 million at 31 December 2025. EBITA in relation to average capital employed excluding goodwill declined during the quarter to 130 per cent from 132 per cent at year-end.

The Group’s net debt increased SEK 202 million from 31 December 2025 to SEK 12,250 million at 31 March 2026, of which liabilities related to put/call options for acquisitions increased SEK 130 million to SEK 3,060 million from SEK 2,930 million at year-end. Interest-bearing net debt declined SEK 139 million during the quarter to SEK 7,662 million at 31 March 2026, compared with SEK 7,801 million at 31 December 2025.

On 24 February 2026, Lifco issued an unsecured bond loan of SEK 1,000 million under its MTN programme with a tenor of two years and an annual floating rate of three months STIBOR +0.48%. Lifco thereby has bonds outstanding totalling SEK 4,750 million. The terms of the MTN programme and bonds are available on lifco.se. In addition to bonds outstanding, Lifco has standard short-term credit facilities.

The net debt/equity ratio as of 31 March 2026 amounted to 0.6 (0.6) and was unchanged since year-end. Net debt in relation to EBITDA was 1.7 (1.6) times compared to 1.7 times at the end of 2025. Interest-bearing net debt in relation to EBITDA was 1.1 (1.1) times compared to 1.1 times at year-end.

Cash flow from operating activities decreased 3.3 per cent to SEK 747 (772) million. Cash flow from investing activities was SEK -479 (-325) million, which was mainly attributable to acquisitions.

FINANCIAL PERFORMANCE – BUSINESS AREAS

Dental

The companies in Lifco’s Dental business area are leading suppliers of consumables, equipment and technical service to dentists across Europe, and the business area also has operations in the US. Lifco sells dental technology to dentists in the Nordic countries and Germany, and develops and sells medical record systems in Denmark, Sweden and Germany. The business area also includes a number of manufacturers which produce, inter alia, fitting products for dentures, disinfectants, saliva ejectors, bite registration and dental impression materials, bonding agents and other consumables that are sold to dentists through distributors around the world.

Net sales in Dental amounted to SEK 1,646 (1,645) million during the first quarter, positively impacted by acquisitions and negatively impacted by exchange rate effects.

EBITA increased 11.4 per cent to SEK 378 (339) million during the period. The EBITA margin improved 2.4 percentage points to 23.0 (20.6) per cent as a result of acquisitions with higher margins and positive mix effects from strong performances in manufacturing companies during the quarter.

The UK company Ethoss Regeneration, which markets and sells regenerative bone graft material to dentists and facial surgeons and the German company Karl Kaps, a niche manufacturer of medical and dental microscopes, were consolidated in the quarter.

Demolition & Tools

The Demolition & Tools business area develops, manufactures and sells equipment for the infrastructure, demolition and construction industries. The Group is the world’s leading supplier in the markets for demolition robots and crane attachments. The Group is also one of the leading global suppliers of attachments to forest machinery and excavators. The business area’s EBITA margin might fluctuate between quarters due to single, major special orders and changes to the product mix.

Net sales decreased 3.6 per cent to SEK 1,581 (1,639) million during the quarter. Organic growth was counteracted by negative exchange rate effects.

EBITA decreased 15.7 per cent to SEK 351 (416) million and the EBITA margin decreased 3.2 percentage points to 22.2 (25.4) per cent, primarily as a result of a weak market trend for demolition robots that led to a negative product mix in the quarter.

Systems Solutions

Through its operating units, the Systems Solutions business area operates in industries offering systems solutions. Systems Solutions is divided into five divisions: Contract Manufacturing, Environmental Technology, Infrastructure Products, Special Products and Transportation Products. At the beginning of the second quarter 2026, Lifco has decided to change its reporting, meaning that the Environmental Technology and Transportation Products divisions will be reported as business areas as of the interim report for the second quarter of 2026.

Net sales in Systems Solutions increased 8.5 per cent to SEK 3,959 (3,648) million during the quarter due to acquisitions and organic growth in all divisions except Contract Manufacturing.

EBITA increased during the period by 15.7 per cent to SEK 913 (789) million and the EBITA margin increased by 1.5 percentage points to 23.1 (21.6) per cent, as the result of acquisitions and strong organic growth within Environmental Technology and Transportation Products as well as a positive product mix.

Contract Manufacturing reported negative sales growth in the quarter with unchanged profitability. Net sales are compared to an exceptionally strong first quarter of 2025.

Net sales in Environmental Technology increased in the quarter with improved profitability as a result of organic growth.

Net sales and profitability in Infrastructure Products increased during the quarter due to acquisitions.

Net sales in Special Products increased during the quarter due to acquisitions. Profitability was unchanged.

Transportation Products reported a healthy sales and profitability development in the quarter as a result of acquisitions and organic growth.

ACQUISITIONS

During the quarter, Lifco consolidated the following acquisitions announced thorugh press releases:

Further information on the acquisitions is provided on page 15. The figures for net sales and number of employees refer to estimated annual net sales and number of employees at the acquisition date.

Taken together, the acquisitions will have a positive impact on Lifco’s results and financial position in 2026.

OTHER INFORMATION

Employees
The average number of employees calculated as full-time equivalents was 7,938 (7,442) in the first quarter. At the end of the period, the number of employees calculated as full-time equivalents was 7,912 (7,424).

Events after the end of the reporting period
At the beginning of the second quarter of 2026, Lifco has decided to organise itself into five operating segments instead of previous three. This change is made after many years of strong growth in Systems Solutions through acquisitions and organic growth. Within Systems Solutions, the two divisions Environmental Technology and Transportation Products, have become so material that they will be reported and monitored internally by the chief operating decision-maker. As of the second quarter of 2026, Systems Solutions will consist of the Contract Manufacturing, Infrastructure Products and Special Products divisions. The Dental and Demolition & Tools operating segments are not affected by the change.

Consolidation of the Italian company Metalltech will take place in the second quarter of 2026 in the Systems Solutions business area, division Infrastructure Products. Metalltech is a niche designer and manufacturer of expanded metal mesh for architectural applications. In 2025, Metalltech reported net sales of approximately EUR 15.8 million and has 53 employees. The acquisition, which comprised the majority of the shares, was announced on 7 April 2026.

Related party transactions
During the period, customary transactions with related parties have occurred. All transactions have been carried out on market terms.

Risks and uncertainties
The risk factors which have the biggest impact for Lifco are global macroeconomic factors, the competitive situation, structural changes in the market and general level of economic activity. Lifco is also exposed to financial risks, including currency risks, interest rate risks, credit and counterparty risks. Lifco is working actively to monitor and continually evaluate sustainability-related risks and their impact on the Group’s operations and earnings. The Group has established a governance structure that involves Group management and the Board and works to continually improve the company’s sustainability-related activities and minimise related risks. As part of this governance, Group management evaluates the compliance of, for example, the Code of Conduct, occupational injuries, IT security and legal disputes, for every subsidiary on a quarterly basis. The risk and sensitivity analysis are described in detail in Lifco’s 2025 Annual and Sustainability Report and have remained unchanged since this report.

The Parent Company is affected by the above risks and uncertainties in its capacity as owner of the subsidiary companies.

Accounting policies
The Group’s year-end report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. In respect of the Parent Company, the report has been prepared in accordance with the Annual Accounts Act and Recommendation RFR 2 Financial Reporting for Legal Entities of the Swedish Financial Reporting Board. The accounting policies have been applied in accordance with those which are presented in the 2025 Annual Report and should be read in conjunction with these.

The total figures in the tables and calculations do not always add up due to rounding differences. The aim is for each row to correspond to its original source and as such, rounding differences can affect the total figures.

This report has not been examined by the company’s auditors.

DECLARATION OF THE BOARD OF DIRECTORS
The Board of Directors and Chief Executive Officer warrant and declare that this report for the first quarter gives a true and fair view of the Parent Company’s and Group’s operations, financial positions and results, and that it describes significant risks and uncertainties faced by the Parent Company and the companies included in the Group. The content of the quarterly report was decided on 23 April 2026.

Enköping, 24 April 2026

FINANCIAL CALENDAR
Report for the second quarter 14 July 2026.
Report for the third quarter 23 October 2026.
Year-end report and report for the fourth quarter 29 January 2027.
Annual Report 2026 the week starting 29 March 2027.

ONLINE PRESENTATION
An online presentation with Per Waldemarson, CEO, and Therése Hoffman, CFO, will take place on Friday, 24 April at 9.00 a.m. CEST. The presentation can be listened to online or by calling in to the telephone conference. Questions can be asked at the telephone conference.

Time: Friday, 24 April at 9.00 a.m. CEST

Link to the presentation: https://lifco.events.inderes.com/q1-report-2026

If you wish to participate at the telephone conference, you can register using the link below. Following registration, you will receive a telephone number and a conference ID to log in to the conference.

Link to register for the telephone conference: https://events.inderes.com/lifco/q1-report-2026/dial-in
 

CONDENSED CONSOLIDATED INCOME STATEMENT

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

SEGMENT OVERVIEW

Lifco is organised into three operating segments: Dental, Demolition & Tools and Systems Solutions. Segment reporting is consistent with the internal reports submitted to the chief operating decision-maker, the CEO of Lifco Group. The Dental and Demolition & Tools operations have similar economic characteristics and are similar in terms of the nature of their products and services, production process and customer categories. Systems Solutions comprises a large number of separate companies which differ individually from each other in terms of the nature of their products and production processes, although the nature of their business activities is similar and they have similar economic characteristics. Systems Solutions has a business area head who is directly accountable to the CEO for the operations, financial performance, forecasts and plans.

Group-wide functions consist mainly of costs attributable to the Board of Directors, CEO and other senior executives, audit costs and company costs for producing information to shareholders, maintaining the stock exchange listing and costs related to the annual report.

The operating segments' results are assessed based on EBITA. The Group's financial income and expenses as well as tax are managed at Group level and are therefore not allocated to each segment. No division of assets and liabilities is made per segment as no such amount is regularly reported to the CEO.

New operating segments as of the second quarter of 2026
At the beginning of the second quarter of 2026, Lifco has decided to organise itself into five operating segments instead of previous three. This change is made after many years of strong growth in Systems Solutions through acquisitions and organic growth. Within Systems Solutions, the two divisions Environmental Technology and Transportation Products, have become so material that they will be reported and monitored internally by the chief operating decision-maker. As of the second quarter of 2026, Systems Solutions will consist of the Contract Manufacturing, Infrastructure Products and Special Products divisions. The Dental and Demolition & Tools operating segments are not affected by the change.

NET SALES TO EXTERNAL CUSTOMERS
No sales are made between the segments.

Net sales by significant type of income:

EBITA

A breakdown of results by segment is made up to and including EBITA. EBITA is reconciled to profit before tax in accordance with the following table:

CONDENSED CONSOLIDATED BALANCE SHEET

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

ACQUISITIONS IN 2026
During the first quarter of the year, two new businesses were consolidated, which were announced through press releases. The businesses that were consolidated are the British Ethoss Regeneration and the German Karl Kaps.

The purchase price allocation includes all acquisitions onsolidated during the quarter. Minor add-on acquisitions have not been announced through press releases. All acquisitions have been consolidated at 100 percent.

Acquisition-related expenses of SEK 7 million are included in administrative expenses in the consolidated income statement for the first quarter of the year. Since the respective consolidation dates, the acquired companies have added SEK 26 million to consolidated net sales and SEK 11 million to EBITA. If the businesses had been consolidated as of 1 January 2026, net sales for the year would have increased by a further SEK 15 million and EBITA would have increased by a further SEK 5 million.

FINANCIAL INSTRUMENTS

¹ Other liabilities classified as financial instruments refer to mandatory put/call options related to non-controlling interests.

The carrying amount is the same as the fair value. The fair value of short-term borrowings is equal to the carrying amount, as the discount effect is insignificant.

Financial instruments at fair value are classified into different levels depending on how fair value is determined. All financial instruments at fair value in the Lifco Group have been classified as level 3, i.e. non-observable inputs. The put/call options are valued on the basis of a multiple valuation whereby a relevant multiple according to the terms of the contracts is applied to an estimated future performance measure. The uncertainty in the valuation can be found in the assessment of future profitability until the maturity date. Revaluation takes place on every balance sheet date.

KEY PERFORMANCE INDICATORS

CONDENSED PARENT COMPANY INCOME STATEMENT

¹ Invoicing of Group-wide services.

CONDENSED PARENT COMPANY BALANCE SHEET

FINANCIAL PERFORMANCE 2015-2025 AND BY QUARTER 2024-2026 FOR NEW SYSTEMS SOLUTIONS AND THE NEW OPERATING SEGMENTS
At the beginning of the second quarter of 2026, Lifco has decided to organise itself into five operating segments instead of previous three. This change is made after many years of strong growth in Systems Solutions through acquisitions and organic growth. Within Systems Solutions, the two divisions Environmental Technology and Transportation Products, have become so material that they will be reported and monitored internally by the chief operating decision-maker. As of the second quarter of 2026, Systems Solutions will consist of the Contract Manufacturing, Infrastructure Products and Special Products divisions. The Dental and Demolition & Tools operating segments are not affected by the change. Below, Systems Solutions is referred to as New Systems Solutions. The Dental and Demolition & Tools operating segments are not affected by the change.

NEW SYSTEMS SOLUTIONS

Through its operating units, the New Systems Solutions business area operates in industries offering systems solutions. New Systems Solutions is divided into three divisions: Contract Manufacturing, Infrastructure Products and Special Products.

ENVIRONMENTAL TECHNOLOGY

Environmental Technology offers solutions that improve working environments and reduce environmental impact in the marine sector, industrial processes and recycling.

TRANSPORTATION PRODUCTS

Transportation Products offers solutions and accessories for service and transport vehicles as well as material handling within industrial applications.

DEFINITIONS AND OBJECTIVES

RECONCILIATION OF ALTERNATIVE KEY PERFORMANCE INDICATORS
The interim report presents alternative key performance indicators for assessing the Group’s performance. The primary alternative KPIs presented in this interim report are EBITA, EBITDA, net debt and capital employed. Definitions of the alternative KPIs are presented on pages 2122.

EBITA compared with financial statements in accordance with IFRS

EBITDA compared with financial statements in accordance with IFRS

Net debt compared with financial statements in accordance with IFRS

Capital employed and capital employed excluding goodwill and other intangible assets compared with financial statements in accordance with IFRS

Capital employed and capital employed excluding goodwill and other intangible assets calculated as the average of the last four quarters compared with financial statements in accordance with IFRS