Arjo AB (A39) Q3 2026 Earnings Report
DE:A39 Q3 2026 EPS Results
- Actual EPS
- EUR 0.02
- Consensus EPS
- EUR 0.04
- Beat/Miss
- Missed by -EUR 0.02
- One Year Ago EPS
- EUR 0.03
DE:A39 Q3 2026 Revenue Results
- Actual Revenue
- EUR 259.92M
- Expected Revenue
- EUR 251.66M
- Beat/Miss
- Beat by +EUR 8.25M
- YoY Revenue Growth
- +7.67%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/22/2026
- Time
- Before Open
- Conference Call
- Thursday, October 22, 2026
Arjo AB's next earnings date is estimated for January 28, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was predominantly positive, supported by 6% organic growth, stronger gross profit and adjusted EBIT, improved reported margins, higher operating cash flow, and lower leverage. Management also highlighted strong momentum in patient handling, North America, and Europe, along with a SEK 350 million EBIT improvement plan. Offsetting issues included higher restructuring costs, weaker quarterly performance in international and distributor-led markets, less favorable working capital, negative investment cash flow, revaluation losses, and uncertainty around the flu season's effect on the fourth quarter.
Arjo reiterated a SEK 350 million commitment of profit improvements until H1 2029, described as a SEK 350 million profit improvement it believes it will be able to deliver by mid-2029, with the improvement being EBIT improvement; restructuring costs were “conservatively mentioned,” the company hopes it “will not need all of this,” and “the majority will happen largely over the coming 18 months.” Arjo will report progress every quarter, present new financial targets during Q1 2027, publish the year-end report at the end of January, and report Q1 in April 2027.
- Solid Organic GrowthArjo delivered 6% organic growth in Q3, with positive development throughout all three months of the quarter and momentum carried over from the strong finish to Q2.
- North America and Europe Led GrowthNorth America was a major growth driver, particularly given the size of the business, while Europe also had a strong month. Year-to-date performance was described as being on a very good path.
- Patient Handling Drove PerformancePatient handling delivered strong results and was the main contributor to growth in capital sales, supporting both growth in key markets and margin performance.
- Gross Margin ImprovedGross margin increased by 1.9% year-on-year. The improvement was supported by a favorable sales mix and strong capital sales, with patient handling the main contributor. Excluding U.S. tariff effects, management said the underlying gross margin development was healthy.
- U.S. Tariff Reimbursement and Lower Tariff CostsArjo received approximately SEK 35 million related to a U.S. tariff reimbursement. Excluding reimbursements, U.S. tariff costs were approximately SEK 11 million lower than in the corresponding quarter last year, while the total gross margin impact from U.S. tariffs was 1.6%.
- Positive Foreign Exchange ContributionFX had no impact on gross margin but increased gross profit by approximately SEK 16 million year-on-year and increased adjusted EBIT by approximately SEK 15 million. The positive impact on the adjusted EBIT margin was 0.5%.
- Adjusted EBIT and Margin ExpansionAdjusted EBIT increased to SEK 247 million from SEK 165 million last year. Excluding FX and the U.S. tariff reimbursement, adjusted EBIT was SEK 195 million, with the adjusted EBIT margin improving to 6.8% from 6.2%.
- Reported EBIT Margin ImprovedThe EBIT margin improved to 7.2% from 5.7% last year, with higher gross profit as the main driver and a lower operating expense-to-sales ratio also contributing.
- Operating Cash Flow IncreasedOperating cash flow increased to SEK 485 million, up SEK 31 million compared with the same period last year, driven primarily by strong operating profit.
- Cash Conversion Above TargetCash conversion was 100.4% in the quarter, and on a rolling 12-month basis it remained above Arjo's financial target of 80%.
- Lower Leverage and Stronger Equity RatioNet debt to adjusted EBITDA decreased to 2.2x at quarter-end. The equity ratio was 50.3%, slightly up from 49.8% at year-end.
- Long-Term Care and Acute Care Strategic FocusArjo's strategy focuses on its strengths in acute care and long-term care, including more even coverage of long-term care across countries and markets, with selective expansion into new care settings where the company believes it has the right to play.
- SEK 350 Million Profit Improvement CommitmentArjo communicated a commitment to deliver SEK 350 million of EBIT improvement by mid-2029. The company said the opportunity is expected to come from its operating model and reengineered cost structure, procurement, and commercial excellence.
- Operational and Digital Transformation InitiativesThe company is adjusting its operating model, changing roles and responsibilities, strengthening group management, simplifying its portfolio, increasing speed to market, improving commercial excellence, and becoming a more digital and AI-enabled care partner.
- Additional Value Creation Areas IdentifiedManagement identified further potential in product portfolio optimization, supply chain optimization, capital efficiency, and a clearer growth agenda covering organic growth and M&A.
- Growing Underlying Care DemandManagement stated that the number of patients needing care continues to grow and that the need for care is continuing to increase regardless of how the broader economy performs.
- Established Global Operating PlatformArjo described itself as a company with SEK 11 billion in turnover, around 7,000 employees, sales in more than 100 countries, and manufacturing or assembly in 5 facilities across 3 continents.
- Planned Financial Target UpdatesArjo plans to present new financial targets during Q1 2027 and provide regular updates on progress toward the SEK 350 million profit improvement commitment.
DE:A39 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 28, 2027 | 2026 (Q4) | 0.05- | 0.02 | ― | ― |
| Oct 22, 2026 | 2026 (Q3) | 0.040.02 | 0.03 | -33.33% (-0.01) | |
| Jul 14, 2026 | 2026 (Q2) | 0.040.04 | 0.03 | 35.29% (+0.01) | |
| Apr 22, 2026 | 2026 (Q1) | 0.040.04 | 0.03 | 17.65% (+0.01) | |
| Jan 30, 2026 | 2025 (Q4) | 0.070.02 | 0.06 | -59.38% (-0.03) | |
| Oct 22, 2025 | 2025 (Q3) | 0.030.03 | 0.03 | 12.50% (+0.00) | |
| Jul 11, 2025 | 2025 (Q2) | 0.030.03 | 0.04 | -24.28% (-0.01) | |
| Apr 29, 2025 | 2025 (Q1) | 0.050.03 | 0.05 | -39.29% (-0.02) | |
| Jan 30, 2025 | 2024 (Q4) | 0.070.06 | 0.07 | -12.93% (-0.01) | |
| Oct 17, 2024 | 2024 (Q3) | 0.040.03 | 0.03 | -26.32% (-0.01) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
