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BTS Group AB (BTS.B) AI Stock Analysis

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SE:BTS.B

BTS Group AB

(Nasdaq OMX AB:BTS.B)

Select Model
Rating:68Neutral
Price Target:SEK 252.00â–²(9.09% Upside)
Action:downgraded
Date:08/19/26

The score is driven primarily by solid but pressured financial performance (margin and return compression versus prior peaks) and a constructive technical uptrend. The earnings call adds meaningful support due to raised guidance, improving margins, and rapid AI-driven revenue growth, while the main offset is valuation risk from the high P/E multiple.

Positive Factors
Improving growth and guidanceThe combination of renewed revenue growth, faster profit expansion and upgraded guidance indicates improving operating momentum across the group. If sustained, stronger demand and better execution should support revenue compounding and enhance earnings power over the next several quarters.
Negative Factors
Profitability and margin compressionThe sharp decline in gross margin and lower net profitability indicate that recent revenue has translated into earnings less efficiently than in prior years. Unless the margin pressure reverses, weaker returns can constrain reinvestment capacity and reduce the quality of future growth.

BTS Group AB (BTS.B) vs. iShares MSCI Sweden ETF (EWD)

-50%-40%-30%-20%-10%0%10%20%30%SE:BTS.B+24.68%EWD+13.33%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
SEK 432.98M
Dividend Yield
2.27%
Average Volume (3M)
24.35K
Price to Earnings (P/E)
47.2
Beta (1Y)
0.68
Revenue Growth
-4.13%
EPS Growth
-71.81%
Country
Sweden
Employees
1,078
Sector
Industrials
Sector Strength
63
Industry
Consulting Services

BTS Group AB Business Overview & Revenue Model

Company Description

BTS Group AB (publ) functions as a dedicated professional services provider, organizing its operations across distinct segments: BTS North America, BTS Europe, BTS Other Markets, and APG. The company delivers a comprehensive suite of solutions tailor...

How the Company Makes Money

BTS primarily makes money by delivering professional services to enterprise and institutional clients. Its core revenue is generated from fees for designing and delivering customized transformation initiatives, leadership and talent development progr...

BTS Group AB Earnings Call Summary

Earnings Call Date:Aug 13, 2026(Q2-2026)|% Change Since:32.45%|Next Earnings Date:Nov 05, 2026
Earnings Call SentimentPositive

The call conveyed solid operational momentum: group revenue (+9%) and EBITA (+13%) growth, a clear North America recovery, exceptional Europe performance, rapid AI-driven revenue expansion (AI now 10% of revenue and +221% YoY), and meaningful productivity gains (SEK 74m). Management raised guidance and highlighted strong cash conversion and a capital-light model. Key negatives are concentrated: Other Markets (Asia Pacific) underperformance with profit down 26% and margin deterioration, short-term one-off costs and severance related to restructuring and acquisitions, and an expected rise in AI token costs next year that will need to be offset by efficiency gains. On balance, positive operational trends and the sizable AI revenue opportunity outweigh the localized/short-term challenges.

Positive Updates

Group top-line and profit growth
Revenue grew 9% (currency adjusted) in Q2 and EBITA increased 13% year-over-year, with EBITA margin improving from 11.7% to 12.3% (up 0.6 percentage points). Management raised the full-year outlook to be significantly better than 2025 on the back of first-half momentum.

Negative Updates

Underperformance in Other Markets (Asia Pacific)
BTS Other markets were essentially flat in Q2 and profit fell 26% year-over-year. EBITDA margin in the segment declined to 12.5% from 17.9% in Q2 2025, driven by continued headwinds in Asia Pacific and low-performing units.

Company Guidance

Management raised full‑year guidance to be "significantly better than 2025" after Q2 results showing 9% currency‑adjusted revenue growth, 13% profit growth and EBITA margin improvement to 12.3% (from 11.7%). They expect North America to stay strong in H2 after returning to double‑digit organic revenue growth and profitability up ~60% with EBITDA margin back to 37.5% (and, excluding two one‑off businesses plus the Sounding Board acquisition, margin would have been ~4 percentage points higher). Europe delivered 25% revenue growth and 38% profit growth with a 16.2% EBITDA margin, while Other Markets were flat on revenue with profits down 26% and margin slipping to 12.5% (from 17.9%) but are forecast to recover and post EBITDA growth as early as Q3. AI is now 10% of group revenue, AI‑related revenue grew 221% y/y to SEK 76m (with SEK 74m in realized AI productivity gains); token costs are currently ~USD 400k but are modeled to rise ~4x next year to USD 1.2–1.6m (offset in part by ongoing software optimizations and a new platform). Cash conversion was 84% LTM, the group remains net‑cash positive, and long‑term metrics include a 12% revenue CAGR since IPO (≈2/3 organic) with historical dividend payouts of 40–65% of PAT; management expects continued margin improvement from additional ~USD 1.15m annualized cost saves (plus ~USD 400k Q2 severance) and further operational rebalancing over the next ~4 quarters.

BTS Group AB Financial Statement Overview

Summary

Overall fundamentals are solid but mixed. Revenue expanded materially over 2021–2024, yet growth has slowed with a slight 2025 decline and only modest TTM improvement. Profitability has weakened versus 2024, with a sharp step-down in gross margin and lower net income/margins. Offsetting this, leverage is manageable (debt-to-equity ~0.35–0.40), and operating cash flow/free cash flow remain positive, though free cash flow momentum has turned negative.

Income Statement

62Positive

Balance Sheet

71Positive

Cash Flow

66Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.70B2.70B2.80B2.68B2.53B1.92B
Gross Profit215.76M213.96M1.24B1.18B1.13B885.16M
EBITDA354.31M357.17M439.04M421.92M423.04M410.04M
Net Income95.34M132.51M386.96M214.81M198.41M214.70M
Balance Sheet
Total Assets3.22B3.17B3.36B2.96B2.76B2.49B
Cash, Cash Equivalents and Short-Term Investments422.55M625.94M703.33M532.32M577.06M594.43M
Total Debt606.85M579.80M589.24M449.51M367.77M265.77M
Total Liabilities1.71B1.73B1.70B1.66B1.54B1.51B
Stockholders Equity1.51B1.45B1.66B1.30B1.21B983.25M
Cash Flow
Free Cash Flow179.10M154.45M385.95M165.65M138.82M292.70M
Operating Cash Flow245.67M212.80M385.95M165.65M199.01M312.05M
Investing Cash Flow-142.78M-186.61M-188.47M-105.37M-75.91M-181.89M
Financing Cash Flow-68.81M-19.55M-51.31M-84.41M-208.28M-160.64M

BTS Group AB Technical Analysis

Technical Analysis SentimentPositive
Last Price231.00

Price Trends

50DMA210.32Positive
100DMA194.87Positive
200DMA169.91Positive

Market Momentum

MACD6.25Positive
RSI66.56Neutral
STOCH66.67Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:BTS.B, the sentiment is Positive. The current price of 231.00 is above the 20-day moving average (MA) of 226.62, above the 50-day MA of 210.32, and above the 200-day MA of 169.91, indicating a bullish trend. The MACD of 6.25 indicates Positive momentum. The RSI at 66.56 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:BTS.B.

BTS Group AB Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

SE:BTS.B against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
SE:BTS.BSE:BTS.B68NeutralSEK 4.48B47.236.40%2.27%-4.13%-71.81%
SE:AFRYSE:AFRY67NeutralSEK 14.69B17.136.63%4.63%-3.51%-7.54%
SE:KARSE:KAR66NeutralSEK 8.16B8.9635.99%―-3.53%1462.04%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
SE:PION.BSE:PION.B62NeutralSEK 336.27M18.5113.61%―-2.39%―
SE:COORSE:COOR61NeutralSEK 4.68B17.7617.45%6.97%-0.68%81.93%
SE:REJL.BSE:REJL.B61NeutralSEK 3.40B19.848.01%3.52%6.51%-22.98%

* Industrials Sector Average

Performance Comparison

-40%-20%0%20%SE:BTS.BSE:AFRYSE:PION.BSE:KARSE:REJL.BSE:COORDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
SE:BTS.B and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
SE:BTS.BBTS Group AB Class B231.0045.3424.42%
SE:AFRYAFRY AB Class B129.70-27.04-17.25%
SE:PION.BPoolia AB Class B6.981.6230.22%
SE:KARKarnov Group AB82.00-31.40-27.69%
SE:REJL.BRejlers AB Class B149.00-43.46-22.58%
SE:COORCoor Service Management Holding AB49.206.3814.90%

BTS Group AB Corporate Events

BTS Group Calls Extraordinary Meeting to Launch Long-Term Executive Stock Option Plan

Oct 15, 2026

BTS Group AB has called an Extraordinary General Meeting in Stockholm on November 6, 2026, to seek shareholder approval for a new long-term stock option program aimed at senior executives. The initiative targets the CEO, Deputy CEO and three manageme...

BTS Group Lifts 2026 Outlook as AI-Driven Services Boost Profitability

Aug 14, 2026

BTS Group AB reported solid operational momentum for the second quarter of 2026, with net sales rising to MSEK 767 and currency-adjusted organic growth of 9 percent, while EBITA grew 11 percent and the margin improved to 12.3 percent. Despite a headl...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 19, 2026