Instalco Reports Robust H1 2026 Growth, Expands Majority Stake in German Fabri Platform

H1 2026 Financial Performance: Revenue Growth and Margin Expansion

Instalco delivered a strong H1 2026 with net sales rising 7.5% to SEK 7,313 million compared to SEK 6,805 million in H1 2025. Adjusted for currency effects, organic growth was 6.7%, reversing the 1.3% organic decline seen in the previous year. This reflects market recovery and operational initiatives launched in autumn 2025.

Profitability improved significantly, with EBITA increasing to SEK 475 million from SEK 348 million in H1 2025, and EBITA margin expanding by 140 basis points to 6.5%. Operating profit rose to SEK 412 million from SEK 280 million. Earnings per share before dilution increased to SEK 0.73 from SEK 0.57, and diluted EPS rose to SEK 0.72 from SEK 0.57. These results indicate that restructuring and operational streamlining are enhancing profitability across Instalco’s Northern European operations.

Q2 2026 Trading Update: Accelerated Growth and Improved Margins

In Q2 2026, Instalco achieved net sales of SEK 3,874 million, up 10.3% from SEK 3,512 million in Q2 2025. Organic growth adjusted for currency was 8.4%, a significant improvement from the -2.8% in Q2 2025. This momentum underscores strengthening market conditions and the ongoing impact of operational improvements initiated in autumn 2025.

Q2 EBITA reached SEK 274 million with a 7.1% margin, up from SEK 225 million and 6.4% margin in Q2 2025, reflecting a 70 basis point margin increase. Operating profit was SEK 242 million compared to SEK 192 million last year. CEO Per Sjöstrand noted positive contributions across all segments, especially in Sweden, while acknowledging uneven market conditions across regions and sectors.

Strategic Majority Acquisition of Fabri Enhances German Market Position

Instalco increased its ownership in its German platform Fabri from 24% to 51% after Q2, becoming the majority shareholder. This move marks the next phase in the company’s German expansion. Fabri will be consolidated into Instalco’s accounts from Q3 2026 and will continue operating under local management within the decentralised model. Instalco described this as "a strong foundation for long-term growth in one of Europe’s largest installation markets."

Since Instalco’s initial 2024 investment, Fabri has grown from 12 companies with 400 employees to 23 companies employing around 800 people. The decision to gain majority control reflects confidence in Fabri’s growth and the German market potential. Additionally, one acquisition completed in Q2 is expected to add SEK 190 million in annual sales, though details remain undisclosed.

Cash Flow and Balance Sheet Overview for H1 2026

Operating cash flow for H1 2026 was SEK 338 million, down from SEK 426 million in H1 2025, primarily due to increased accounts receivable linked to strong sales growth and higher invoicing late in the period. Importantly, older overdue receivables have not increased proportionally, indicating improved credit quality.

Q2 operating cash flow was SEK 104 million versus SEK 202 million in Q2 2025, reflecting seasonal and growth-related receivables timing. Management reaffirmed its commitment to financial discipline and maintaining a strong balance sheet, prioritising operational cash generation and selective, strategically justified investments, such as the Fabri majority stake and the recent acquisition.

Instalco AI Platform: Driving Efficiency Across Subsidiaries

In Q2, Instalco launched Instalco AI, an internal AI platform providing secure access to artificial intelligence tools across its 150+ subsidiaries. CEO Per Sjöstrand, with 45 years of industry experience, described the AI transformation as a major technological shift offering significant competitive advantage for early adopters.

The platform enhances administrative workflows, including estimating, planning, and documentation, automating routine tasks to allow skilled tradespeople to focus on customer-facing activities. AI-driven investments in data centre infrastructure are also generating increased demand for electrical installations, cooling, and ventilation services. Instalco is actively engaged in data centre projects and views this sector as a growing market with strong expansion potential, contributing to broader market tightness and supporting installation service pricing.

Instalco 2.0: Ongoing Operational Improvement Framework

Launched in autumn 2025, Instalco 2.0 is a continuous operational improvement program tailored to the company’s decentralised structure. In spring 2026, subsidiaries conducted self-assessments to identify strengths and improvement areas, enabling focused efforts for greater impact. CEO Sjöstrand noted that the initiatives are taking hold with visible earnings improvements, especially in Sweden, while acknowledging that achieving long-term margin targets will require sustained effort across the 150+ companies.

Profitability Goals: Progress Toward Long-Term Margin Targets

Despite notable progress, Instalco acknowledges further work is needed to reach its long-term EBITA margin targets. The margin expanded from 5.1% to 6.5% in H1 2026 and from 6.4% to 7.1% in Q2, marking meaningful advancement. CEO Sjöstrand described Q2 results as "an important step forward," emphasizing ongoing efforts to enhance project execution, clarify operational responsibilities, improve cash flow management, and boost overall profitability. He highlighted strong organisational motivation but noted that uneven market conditions across geographies and segments may influence margin expansion timing.

Market Environment and Growth Drivers: Diverse Demand Across Regions

Instalco operates across electrical, heating, plumbing, ventilation, industrial solutions, and technical consulting in Sweden, Norway, Finland, and Germany. The company reported solid growth across all segments and an increasing order backlog but cautioned that market conditions vary by region, segment, and customer category.

Data centre and technical infrastructure investments are a key growth driver, increasing demand for electrical installations, cooling, and ventilation. CEO Sjöstrand noted these investments are absorbing installation expertise and strengthening market conditions broadly, benefiting multiple installation categories. Instalco’s diversified geographic and service footprint positions it well to capitalize on these structural trends.

Geographic Expansion and Decentralised Model: Strengthening German Operations

Instalco’s decentralised business model encompasses over 150 subsidiaries across Sweden, Norway, Finland, and Germany, delivering system design, installation, and maintenance services to residential, commercial, and industrial clients. The strategy focuses on acquiring bolt-on installation companies that retain local management while leveraging group-wide operational improvements and strategic support.

The majority acquisition of Fabri consolidates Instalco’s German platform, now comprising 23 companies and 800 employees. Instalco’s 51% ownership grants board-level influence and full financial consolidation while preserving Fabri’s operational autonomy under local leadership. This approach aligns with Instalco’s successful acquisition and integration philosophy.