Comments on the report

First quarter

The Group’s consolidated net sales for the period decreased by 8 percent compared to last year and amounted to SEK 1,022 M (1,105). The decline is explained by negative organic tonnage growth of -6 percent, negative currency exchange effects of -2 percent. The decline is mainly related to the Swedish operations.

Demand remained weak during the quarter across both the manufacturing and construction industries, particularly in the Swedish market. The cold winter contributed to delayed construction starts and subdued demand for construction‑related products.

Volumes to the manufacturing industry declined by 5 percent, primarily driven by the subcontractor segment. Deliveries to the construction segment decreased by 11 percent. In Finland, however, volumes increased by 5 percent, driven by deliveries to a major construction project and improved operational efficiency. The Finnish market is showing signs of recovery, with increased demand toward the end of the quarter.

Steel prices were largely unchanged compared with the previous year but increased gradually during the quarter, primarily driven by the introduction of CBAM, other trade protection measures, and higher energy costs. The price increase was partly offset by continued weak demand and a stronger Swedish krona.

Gross profit increased to SEK 133 M (115) corresponding to a gross margin of 13.0 percent (10.4) driven by increasing steel prices and improved efficiency in Finland. The operating result increased to SEK 8 M (-12), despite currency exchange losses of approximately SEK -3 M (4). The operating margin increased to 0.8 percent (-1.1). Adjusted for inventory gains and losses of SEK 10 M (-10), the underlying operating result amounted to SEK -2 M (-2) corresponding to an underlying operating margin of -0.2 percent (-0.2).