Kalmar reports sales growth in Q1, facing headwinds in services
Equipment manufacturer Kalmar reported a 5 percent increase in sales to EUR 420 million for the first quarter, but saw profitability decline in its services segment. The company maintained its full-year profit margin guidance above 12.5 percent.
Equipment manufacturer Kalmar announced that its sales for the first quarter, from January to March, rose by 5 percent to EUR 420 million, up from EUR 398 million in the same period last year. Despite an improvement in overall profitability, the company encountered challenges within its services division.
The company's orders received decreased by 6 percent to EUR 451 million. This decline is attributed to a strong comparison period and the timing of several large orders. While sales of its eco-friendly product portfolio remained robust, the order intake for fully electric equipment was modest. Global geopolitical uncertainty did not significantly impact overall demand.
Kalmar's comparable operating profit for the equipment segment increased to 12.6 percent, compared to 11.6 percent previously. However, the profitability in the services segment dropped to 16.0 percent from 19.0 percent. Reasons cited for the decrease include tariffs and challenges in spare parts sales in North America. The company plans to improve service business profitability through cost optimization and targeted sales and pricing initiatives.
The company reiterated its guidance for the full year 2026, expecting its comparable operating profit margin to remain above 12.5 percent. Kalmar's financial position remained strong, with operating cash flow before finance items and taxes totaling EUR 67 million. Strategic objectives include further development of sustainable solutions and deepened cooperation with industry players.