Q2 2026 Ambea AB (publ) Earnings Call

August 19, 2026

Operator: Good day, and thank you for standing by. Welcome to the Ambea Interim Report Q2 2026 Webcast and Conference Call. At this time, all participants are in listen-only mode. After the speakers' presentation, there will be the question-and-answer session. To ask a question during the session, you need to press star one one on your telephone keypad. You will then hear an automatic message advising your hand is raised. To withdraw your question, please press star one and one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to our first speaker today, Mark Jensen, CEO. Please go ahead.

Speaker #2: Good day, and thank you for standing by. Welcome to the Ambea interim report, second quarter 2026 webcast and conference call. At this time, all participants are in listen-only mode.

Speaker #2: After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you need to press *11 on your telephone keypad.

Speaker #2: You will hear an automated message advising that your hand is raised. To withdraw a question, please press *1, and then 1 again. Please be advised that today's conference is being recorded.

Speaker #2: I would now like to hand the conference over to our first speaker today, Mark Jensen, CEO. Please go ahead.

Speaker #3: Thank you so much, and welcome to Ambea's presentation of the second quarter 2026. I'm Mark Jensen, CEO, and with me today is Benno Eliasson, CFO.

Mark Jensen: Thank you so much, and welcome to Ambea's presentation of the Q2 2026. I am Mark Jensen, CEO, and with me today is Benno Eliasson, CFO. We will start with a brief group overview and our growth drivers, and then Benno will take you through the financials and business areas before we wrap up with concluding remarks and the Q&A. Ambea is the leading care provider in the Nordics, with operations across Sweden, Norway, Denmark, and Finland. We operate through strong local brands and business areas covering elderly care, social care, and staffing and competence solutions. To clarify the breadth and scale of the group, we have redesigned this opening slide to provide a better context. On the left side of the slide, we see the care segments our business areas serve and the respective segment share of the Ambea Group net sales.

Speaker #3: We'll start with a brief group overview and our growth drivers, and then Benno will take you through the financials and business areas before we wrap up.

Speaker #3: We'll conclude with remarks and the Q&A. Ambea is the leading care provider in the Nordics, with operations across Sweden, Norway, Denmark, and Finland. We operate through strong local brands and business areas covering elderly care, social care, and staffing and competence solutions.

Speaker #3: To clarify the breadth and scale of the group, we have redesigned this opening slide to provide better context. On the left side of the slide, we see the care segments our business areas serve and the respective segment share of the Ambea Group net sales.

Speaker #3: To the right, we see the actual rolling 12-month net sales per business area, the corresponding share of group net sales, and rolling 12-month EBITDA margins.

Mark Jensen: To the right, we see the actual rolling 12 net sales per business area, the corresponding share of group net sales, and rolling 12 EBITDA margins. In the last 12 months, we reached over 16.9 billion SEK in net sales and delivered an adjusted EBITDA margin of 10.0% on group level. We continue to grow through both organic expansion and acquisitions in a resilient and risk-balanced business model with continued strong growth potential. From here, let's go straight to the highlights of the Q2. Q2 was characterized by solid organic growth, opening of new care places within social care, and a new acquisition in Finland. Net sales increased by 7%, mainly driven by organic growth. At group level, adjusted EBITDA amounted to 397 million SEK with an adjusted EBITDA margin of 9%. The improved result is driven by high occupancy and operational improvements.

Mark Jensen: To the right, we see the actual rolling 12 net sales per business area, the corresponding share of group net sales, and rolling 12 EBITDA margins. In the last 12 months, we reached over SEK 16.9 billion in net sales and delivered an adjusted EBITDA margin of 10.0% on group level. We continue to grow through both organic expansion and acquisitions in a resilient and risk-balanced business model with continued strong growth potential. From here, let's go straight to the highlights of the Q2. Q2 was characterized by solid organic growth, opening of new care places within social care, and a new acquisition in Finland. Net sales increased by 7%, mainly driven by organic growth. At group level, adjusted EBITDA amounted to SEK 397 million with an adjusted EBITDA margin of 9%. The improved result is driven by high occupancy and operational improvements.

Speaker #3: In the last 12 months, we reached over SEK 16.9 billion in net sales and delivered an adjusted EBITDA margin of 10.0% at the group level.

Speaker #3: We continue to grow through both organic expansion and acquisitions in a resilient and risk-balanced business model, with continued strong growth potential. And from here, let's go straight to the highlights of the second quarter.

Speaker #3: Quarter 2 was characterized by solid organic growth, the opening of new care places within social care, and a new acquisition in Finland. Net sales increased by 7%, mainly driven by organic growth.

Speaker #3: At group level, adjusted EBITDA amounted to SEK 397 million, with an adjusted EBITDA margin of 9%. The improved result is driven by higher occupancy and operational improvements.

Speaker #3: Adjusted EPS grew by 88% and amounted to SEK 2.13 in the quarter. The strong growth is primarily driven by higher earnings. At the end of the quarter, Ambea announced a recommended public offer to the shareholders of Humana, and, linked to that, we initiated a program to repurchase own shares.

Mark Jensen: Adjusted EPS grew by 88% and amounted to 2.13 SEK in the quarter. The strong growth is primarily driven by higher earnings. At the end of the quarter, Ambea announced a recommended public offer to the shareholders of Humana. Linked to that, we initiate a program to repurchase own shares. At the next slide, we will look at the development of our organic pipeline for new care places. Already during the first 6 months of 2026, we have signed agreements for new care places that exceed the entire year of 2025. This is based on society's high need for more qualitative care places as the demand is rapidly increasing, not least within elderly care. Elderly care is also the area where we have the most new places in pipeline. New nursing homes are always minimum 60 apartments of size.

Mark Jensen: Adjusted EPS grew by 88% and amounted to SEK 2.13 in the quarter. The strong growth is primarily driven by higher earnings. At the end of the quarter, Ambea announced a recommended public offer to the shareholders of Humana. Linked to that, we initiate a program to repurchase own shares. At the next slide, we will look at the development of our organic pipeline for new care places. Already during the first 6 months of 2026, we have signed agreements for new care places that exceed the entire year of 2025. This is based on society's high need for more qualitative care places as the demand is rapidly increasing, not least within elderly care. Elderly care is also the area where we have the most new places in pipeline. New nursing homes are always minimum 60 apartments of size.

Speaker #3: On the next slide, we will look at the development of our organic pipeline for new care places. Already during the first six months of 2026, we have signed agreements for new care places that exceed the total for the entire year of 2025.

Speaker #3: This is based on society’s high need for more qualitative care places, as the demand is rapidly increasing, not least within elderly care. Elderly care is also the area where we have the most new places in the pipeline.

Speaker #3: New nursing homes are always a minimum of 60 apartments in size within social care, and a new care home is smaller, typically from 6 to 10 places.

Mark Jensen: Within social care, a new care home is smaller, typically from 6 to 10 places. We will continue to expand the pipeline in line with the needs of society and where municipalities welcome private operators in the welfare mix. Over time, we foresee the need for our contribution will increase. Our pipeline ambition is to meet the 2025 full year numbers for Vardaga also in 2026. We expect further increase in Altiden's elderly care pipeline in the H2 of the year, and remaining business areas will also contribute positively year to go. Approaching the Swedish elections in September, we trust that the new ruling coalitions will face the supply challenge with new ideas and a focus on care receivers and their relatives. We will constructively engage in dialogues to provide sustainable and qualitative care solutions as we have always done.

Speaker #3: We will continue to expand the pipeline in line with the needs of society, and where municipalities welcome private operators in the welfare mix. Over time, we foresee that the need for our contribution will increase.

Speaker #3: Our pipeline ambition is to meet the 2025 full-year numbers for Vårdagar, also in 2026. We expect further increase in Altiden's elderly care pipeline in the second half of the year, and remaining business areas will also contribute positively year to go.

Speaker #3: As we approach the Swedish elections in September, we trust that the new ruling coalitions will face the supply challenge with new ideas, and a focus on care receivers and their relatives.

Speaker #3: We will constructively engage in dialogues to provide sustainable and qualitative care solutions, as we have always done. And turning the page, let's review the total organic pipeline.

Mark Jensen: Turning the page, let's review the total organic pipeline. Organic growth is targeted to deliver approximately half of our growth target. The increase in signed rental contracts we saw on the previous slide positively impact the total pipeline, which is now above 2,200 new care places to open between 2026 and 2030, an increase of more than 60% compared to same quarter last year, and clearly industry leading. Fully ramped up and at 2026 prices, the expected total pipeline revenue will accumulate to approximately 2.7 billion SEK. A ramp-up normally takes 12 to 24 months from opening date, depending on size and type of care home, as well as local demand. Looking 12 months ahead, we will open 480 new care places in the Nordics, which supports continued growth and improved economies of scale.

Speaker #3: Organic growth is targeted to deliver approximately half of our growth target. The increase in signed rental contracts we saw on the previous slide positively impacts the total pipeline, which is now above 2,200 new care places to open between 2026 and 2030.

Speaker #3: An increase of more than 60% compared to the same quarter last year, and clearly industry-leading. Fully ramped up, and in 2026, the expected total pipeline revenue will accumulate to approximately SEK 2.7 billion.

Speaker #3: A ramp-up normally takes 12 to 24 months from opening date, depending on the size and type of care home, as well as local demand.

Speaker #3: Looking 12 months ahead, we will open 480 new care places in the Nordics, which supports continued growth and improved economies of scale. With mid-single-digit organic growth coming from pipeline expansion, it is important to maintain and develop our position as an employer of choice, while we continue to invest in our workplaces, work environment, career opportunities, competence, and leadership development.

Mark Jensen: With mid-single-digit organic growth coming from pipeline expansion, it is important to maintain and develop our position as an employer of choice. We will continue to invest in our workplaces, work environment, career opportunities, competence, and leadership development. We will now have a look at acquired growth. Acquisitions are an important complement to organic growth, building to the overall 8% to 10% growth target, and we have maintained a high level of M&A activity in the quarter. During the quarter, Validia expanded and closed the third acquisition within Child Welfare services, adding 40 million SEK in annual net sales. At the end of the quarter, we announced a recommended public offer to the shareholders in Humana, aiming to combine the companies. We continue to see an active pipeline across markets, and we remain selective, focusing on quality assets, strong operational fit, and value creation through integration.

Speaker #3: We will now have a look at acquired growth. Acquisitions are an important complement to organic growth, contributing to the overall 8–10% growth target, and we have maintained a high level of M&A activity in the quarter.

Speaker #3: During the quarter, Valida expanded and closed its third acquisition within child welfare services, adding SEK 40 million in annual net sales. At the end of the quarter, we announced a recommended public offer to the shareholders in Humana, aiming to combine the companies.

Speaker #3: We continue to see an active pipeline across markets, and we remain selective, focusing on quality assets, strong operational fit, and value creation through integration.

Speaker #3: Let's have a closer look at total revenue growth on the next slide. We have now cycled the acquisition of Valida in Finland, and total revenue growth has slowed for that reason.

Mark Jensen: Let's have a closer look at total revenue growth on the next slide. We have now cycled the acquisition of Validia in Finland, and total revenue growth has slowed for that reason. Anyhow, the quarter showed good growth of 7.3%, driven primarily by a stable and industry-leading organic growth of 4.4%. This reflects the strength of our business model. We grow by improved occupancy, expanding capacity in our existing operations, signing rental contracts for new care units, and by successfully integrating acquisitions. Overall, this creates a balanced and sustainable growth profile. At the core of our model is quality and people. So let's turn to that. During last quarter, we introduced a new group-wide quality management system in Vardaga and Nytida named MiraQ.

Speaker #3: Anyhow, the quarter showed good growth of 7.3%, driven primarily by a stable and industry-leading organic growth of 4.4%. This reflects the strength of our business model.

Speaker #3: We grow by improving occupancy, expanding capacity in our existing operations, signing rental contracts for new care units, and by successfully integrating acquisitions. Overall, this creates a balanced and sustainable growth profile.

Speaker #3: At the core of our model is quality and people, so let's turn to that. During last quarter, we introduced a new group-wide quality management system in Vårdagar and Nytida, named MiraQ.

Speaker #3: By bringing our quality process and data into one common platform across business areas and geographies, we can identify improvement areas more quickly, share knowledge across the organization, and further strengthen our systematic quality management.

Mark Jensen: By bringing our quality process and data into one common platform across business areas and geographies, we can identify improvement areas more quickly, share knowledge across the organization, and further strengthen our systematic quality management. The rollout will continue in our remaining business areas during the remaining part of the year. In a highly labor-intensive business like ours, our employees are truly at the heart of everything we do. Our latest eNPS, which measures how likely colleagues are to recommend Ambea as an employer, remains consistently high. This reflects the positive culture we are building together and strengthens the foundation of our employer brand. Diversity and inclusion are an integral part of our culture and long-term people strategy.

Speaker #3: And the rollout will continue in our remaining business areas during the rest of the year. In a highly labor-intensive business like ours, our employees are truly at the heart of everything we do.

Speaker #3: Our latest employee Net Promoter Score, which measures how likely colleagues are to recommend Ambea as an employer, remains consistently high. This reflects the positive culture we are building together and strengthens the foundation of our employer brand.

Speaker #3: Diversity and inclusion are an integral part of our culture and long-term people strategy. During the quarter, we participated in European Diversity Month in May and continued our partnership with Stockholm Pride, reinforcing our commitment to creating an inclusive workplace where everyone is treated with respect and has equal opportunities.

Mark Jensen: During the quarter, we participated in the European Diversity Month in May and continued our partnership with Stockholm Pride, reinforcing our commitment to creating an inclusive workplace where everyone is treated with respect and has equal opportunities. You can read more about our quality and sustainability work in the quarterly report. Now, I would like to hand over the presentation to Benno Eliasson for our financial summary.

Speaker #3: You can read more about our quality and sustainability work in the quarterly report. And now, I would like to hand over the presentation to Benno for our financial summary.

Speaker #2: Thank you, Mark. Net sales grew by almost 300 million, or 7% in total, and all four countries contributed well. Nytida and Vårdboenden grew respectively 4% and 6% from higher occupancy, and Stendi’s 11% growth this quarter was helped by a stronger Norwegian currency, but also higher occupancy within child welfare.

Benno Eliasson: Thank you, Mark. Net sales grew at almost SEK 300 million or 7% in total, and all four countries contributed well. Nytida and Vardaga grew respectively 4% and 6% from higher occupancy, and Stendi's 11% was this quarter helped by a stronger Norwegian currency, but also higher occupancy within Child Welfare. Validia grew with 19%, primarily driven by the new business segment, Child Welfare, where we have made three acquisitions in the last three quarters. Turning to the EBITDA development. This slide shows how the different business areas have contributed to the adjusted EBITDA of the group. We can see that also when it comes to EBITDA growth, all four countries have contributed. Nytida and Vardaga showed solid improvement in EBITDA as well as EBITDA margin, driven by good occupancy and high level of operational efficiency.

Speaker #2: Valida grew by 19%, primarily driven by the new business segment, child welfare, where we have made three acquisitions in the last three quarters. Turning to the EBITDA development, this slide shows how the different business areas have contributed to the adjusted EBITDA of the group.

Speaker #2: We can see that also when it comes to EBITDA growth, all four countries have contributed. Vårdagar and Nytida Vårdagar showed solid improvement in EBITDA, as well as EBITDA margin, driven by good occupancy and a high level of operational efficiency.

Benno Eliasson: Stendi improved through a more stable occupancy situation and improved operational efficiencies, helped by a one-off this quarter of 8 million SEK. Altiden showed a continued EBITDA improvement for the 10th consecutive quarter and contributed with 12 million SEK in the EBITDA improvement. Adjusted EBITDA in total increased by 28% to 397 million SEK, and the adjusted EBITDA margin in the group was 9.0%, up from 7.6% last year. Rolling 12 adjusted EBITDA margin now reached 10% for the first time. Cash flow. Operating cash flow in Q2 was very strong. This is both an effect of the strong profitability as well as a normal pattern after a softer quarter like we had in Q1, and demonstrated the strong underlying cash generation that Ambea has. There are always some quarterly fluctuations in payments, but over time, we are delivering a solid cash conversion of around 95% year after year.

Speaker #2: Stemby improved through a more stable occupancy situation and improved operational efficiency, helped by a one-off this quarter of SEK 8 million. Altiden showed a continued EBITDA improvement for the 10th consecutive quarter and contributed SEK 12 million to the EBITDA improvement.

Speaker #2: Adjusted EBITDA in total increased by 28% to SEK 397 million, and the adjusted EBITDA margin in the Group was 9.0%, up from 7.6% last year.

Speaker #2: Volume 12 adjusted EBITDA margin has now reached 10% for the first time. Operating cash flow in Q2 was very strong. This is both an effect of the strong profitability, as well as a normal pattern after a softer quarter like we had in Q1, and demonstrates the strong underlying cash generation that Ambea has.

Speaker #2: There are always some quarterly fluctuations in payments, but over time we are delivering a solid cash conversion of around 95% year after year. This slide shows the way from the EBITDA, excluding IFRS 16, down to the free cash flow post-tax.

Benno Eliasson: This slide shows the way from the EBITDA excluding IFRS 16 down to the free cash flow post-tax. The rolling 12 numbers are now at 929 million SEK, an increase as expected from last quarter by a bit more than 200 million SEK. The increase in EBITDA and more normalized net working capital are the driving factors behind the positive development. Our solid cash generation gives us both flexibility and strength to continue investing in quality and growth. The next slide shows the utilization of the free cash flow. You can see how we have used the generated 929 million SEK. 212 million was distributed to our shareholders as dividends. 187 million was spent on the four acquisitions, and 521 million was spent on the two share buyback programs. Net debt has decreased by 87 million SEK.

Speaker #2: The rolling 12 numbers are now at SEK 929 million, an increase as expected from last quarter by a bit more than SEK 200 million.

Speaker #2: The increase in EBITDA and more normalized net working capital are the driving factors behind the positive development. Our solid cash generation gives us both flexibility and strength to continue investing in quality and growth.

Speaker #2: And the next slide shows the utilization of the free cash flow. You can see how we have used the generated SEK 929 million: SEK 212 million was distributed to our shareholders as dividend, SEK 187 million was spent on the four acquisitions, and SEK 521 million was spent on the two share buyback programs.

Speaker #2: And net debt has decreased by SEK 87 million. Driven by this, with over SEK 700 million delivered in different ways to our shareholders, we have reduced our leverage from 2.7 times EBITDA last year to 2.4 times at the end of this quarter.

Benno Eliasson: Even with this over 700 million delivered in different ways to our shareholders, we have reduced our leverage from 2.7x EBITDA last year to 2.4x at the end of this quarter. This is well below our financial target of 3.25x and gives us good flexibility for the future. Then to the earnings per share. The strong development in sales and profitability, together with the share buybacks we have conducted, have delivered a strong growth in earnings per share over the last year. In this quarter, the reported EPS grew from 1.13 SEK to 2.13 SEK or by 88% compared to last year. The growth pace over the last year is very high. The compound annual growth rate the last two years are 25% in reported EPS.

Speaker #2: This is well below our financial target of 3.25 times and gave us good flexibility for the future. And then to the earnings per share.

Speaker #2: The strong development in sales and profitability, together with the share buybacks we have conducted, have delivered strong growth in earnings per share over the last year.

Speaker #2: In this quarter, the reported EPS grew from SEK 1.13 to SEK 2.13, or by 88% compared to Q2 last year. The growth pace over the last year is very high.

Speaker #2: The compound annual growth rate over the last two years is 25% in reported EPS, and if we adjust the EPS for IFRS 16 and items related to acquisitions, the growth rate is 23%.

Benno Eliasson: If we adjust the EPS for IFRS 16 and items related to acquisitions, the growth rate is at 23%. Then turning to the business areas, starting with Nytida. Net sales increased by 4% in Nytida, driven both by acquisitions and ramp-up units. EBITDA rose by 17% to 148 million SEK compared to the 127 last year, thanks to continued good performance in previously completed acquisitions, together with improved occupancy for ramp-up units and adjustments made in the service offering. We have continued to adapt our service offering in favor of services with more expected higher demand as well as successfully adjusted the capacity. This is the fourth consecutive quarter with higher margins compared to previous year, and the rolling 12 margin now increased to 13.2% from 12.0% one year ago. Then we turn to Elderly Care and Vardaga Sweden.

Speaker #2: Then turning to the business areas, we start with Nyttida. Net sales increased by 4% in Nyttida, driven both by acquisitions and ramp-up units. EBITDA rose by 17% to SEK 148 million compared to SEK 127 million last year, thanks to continued good performance in previously completed acquisitions, together with improved occupancy for ramp-up units and adjustments made in the service offering.

Speaker #2: We have continued to adapt our service offerings in favor of services with higher expected demand, as well as successfully adjusted capacity. This is the fourth consecutive quarter with higher margins compared to the previous year, and the rolling 12-month margin has now increased to 13.2% from 12.0% one year ago.

Speaker #2: And then we turn to elderly care and Vårdagar in Sweden. Vårdagar continues to deliver solid growth, as net sales increased by 6%, but sales in own management continue to grow at a higher pace.

Benno Eliasson: Vardaga continues to deliver solid growth as net sales increased by 6%, but sales in Own Management continues to grow at a higher pace, this quarter by 10%, reaching SEK 1 billion 27 million, driven by new openings and good occupancy in the new one, as well as the existing nursing homes. The nursing homes we opened in Q4 last year and Q1 this year are showing better-than-expected occupancy development. Net sales in Contract Management decreased by 3% as we handed back two contracts that expired to the municipalities. We will exit the contract with an annual turnover of SEK 199 million gradually within the next 12 months. EBITDA increased by 24% to SEK 143 million. The profitability development in mature units continues to be strong as we are running the units with historically high occupancy and thereby improve operational efficiency.

Speaker #2: This quarter, by 10%, reaching 1 billion 27 million SEK, driven by new openings and good occupancy in the new one as well as the existing nursing homes.

Speaker #2: The nursing homes we opened in Q4 last year and Q1 this year are showing better-than-expected occupancy development. Net sales in contract management decreased by 3%, as we handed back two contracts that expired to the municipalities.

Speaker #2: We will exit the contract with an annual turnover of SEK 199 million, gradually within the next 12 months. EBITDA increased by 24% to SEK 143 million.

Speaker #2: The profitability development in mature units continues to be strong, as we are running the units with historically high occupancy and thereby improve operational efficiency.

Speaker #2: The negative effect on margins that normally comes from newly established units was lower than expected. In total, the EBITDA margin increased by 1.4 percentage points to 9.9% in the quarter and to 10.0% on a rolling 12-month basis.

Benno Eliasson: The negative effect on margins that normally comes from the newly established units was lower than expected. In total, the EBITDA margin increased by 1.4 percentage points to 9.9% in the quarter and to 10.0% rolling 12. Then turn to Stendi in Norway. Stendi delivered a stronger quarter than last year. Net sales increased by 11% in SEK and 5% in local currency. Occupancy for care services for adults was still slightly lower than last year, but more stable than in the last quarters, while our services for children and youth had higher occupancy than last year in this quarter. The Q2 is the weakest EBITDA quarter from a seasonality point of view, since there are most of the banking holidays in Norway in the quarter, and this drives higher staffing costs.

Speaker #2: And then turn to Stemby and Norway. Stemby delivered a stronger quarter than last year. Net sales increased by 11% in SEK and 5% in local currency.

Speaker #2: Occupancy for care services for adults was still slightly lower than last year, but more stable than in the last quarters, while our services for children and youth had higher occupancy than last year in this quarter.

Speaker #2: The second quarter is the weakest EBITDA quarter from a seasonality point of view, since there are most of the banking holidays in Norway in the quarter, and this drives higher staffing costs.

Speaker #2: EBITDA amounted to SEK 54 million, and the EBITDA margin was 5.9%, which was SEK 25 million, or 2.4 percentage points, better than Q2 last year.

Benno Eliasson: EBITDA amounted to SEK 64 million, and the EBITDA margin was 5.9%, which was SEK 25 million or 2.4 percentage points better than Q2 last year. A more stable occupancy together with operational improvements following measures implemented to adjust operations improved the profitability. We were also helped by a positive one-off effect of SEK 8 million. We are strategically working towards units with higher capacity and better operational efficiency and are phasing out smaller units. We expect to see more effects of these various improvement measures in the H2 of the year. We are now at a rolling 12 EBITDA margin of 7.4%, which is up from 6.8% last quarter, and we expect the margin to improve further. Then turn to Finland and Validia. For the first time, we now have a quarter to compare with in Finland.

Speaker #2: A more stable occupancy, together with operational improvements following measures implemented to adjust operations, improved the profitability. We were also helped by a positive one-off effect of SEK 8 million.

Speaker #2: We are strategically working towards units with higher capacity and better operational efficiency, and we are phasing out smaller units. We expect to see more effects of these various improvement measures in the second half of the year.

Speaker #2: We are now at a rolling 12-month EBITDA margin of 7.4%, which is up from 6.8% last quarter, and we expect the margin to improve further.

Speaker #2: And then turning to Finland and Validia. For the first time, we now have a quarter to compare with in Finland. Validia showed continued solid performance together with the completion of the third acquisition in the new segment of child welfare.

Benno Eliasson: Validia showed continued solid performance together with the completion of the third acquisition in the new segment of Child Welfare. The latest acquisition was closed at 1 June. Net sales in the quarter amounted to SEK 446 million, which is a 20% increase from last year. Of this growth, 15 percentage points was from the new segment within Child Welfare, and 5 percentage points was from the other segment. EBITDA reached SEK 41 million, an increase from SEK 39 million last year, and margin in the quarter reached 9.2%, and we are now at 10.5% margin on the rolling 12 basis. The startup of the new business segment and the integration of the acquired businesses have affected the margin negatively short-term. We expect the margin in new segment to gradually increase as we improve occupancy and implement our system and processes.

Speaker #2: The latest acquisition was closed on the 1st of June. Net sales in the quarter amounted to SEK 446 million, which is a 20% increase from last year.

Speaker #2: Of this growth, 15 percentage points was from the new segment within child welfare and 5 percentage points was from the other segments. EBITDA reached SEK 41 million, an increase from SEK 39 million last year, and the margin in the quarter reached 9.2%. We are now at a 10.5% margin on a rolling 12-month basis.

Speaker #2: The startup of the new business segment and the integration of the acquired businesses have affected the margin negatively in the short term. We expect the margin in the new segment to gradually increase as we improve occupancy and implement our systems and processes.

Benno Eliasson: Over time, we expect the margin within Child Welfare to be in line with average margin in the other segments in Finland. Validia was acquired as a growth platform in Finland, and we will continue to create growth through new establishments, bolt-on acquisitions, and continued development of the existing operations. Now turn to Denmark. Altiden in Denmark once again delivered an overall very strong quarter with continued strong revenue growth driven by higher occupancy across both elderly and social care. Net sales increased by 7% in local currency. In SEK, net sales were up 6%. Net sales in Own Management increased by 12% in local currency. Contract Management decreased by 8% due to the termination of one social care contract last year.

Speaker #2: Over time, we expect the margin within child welfare to be in line with the average margin in the other segments in Finland. Validia was acquired as a growth platform in Finland, and we will continue to create growth through new establishments, both via acquisitions and continued development of the existing operations.

Speaker #2: So now, turning to Denmark. Denmark once again delivered an overall very strong quarter, with continued strong revenue growth driven by higher occupancy across both elderly and social care.

Speaker #2: Net sales increased by 7% in local currency; in SEK, net sales were up 6%. Net sales in own management increased by 12% in local currency, while contract management decreased by 8% due to the termination of one social care contract last year.

Speaker #2: The second quarter is, from a seasonality point of view, the weakest for the same reasons as Spain and Norway, but the profitability improvement versus last year continues at a high pace.

Benno Eliasson: The Q2 are from a seasonality point of view, the weakest for the same reasons as in Stendi in Norway, but the profitability improvement versus last year continues at a high pace. EBITDA this quarter increased to 13 million SEK, corresponding to a margin of 3.7%, which is up from 0.3% last year. The positive earnings development was driven by the higher occupancy in Own Management and by operational improvements. We now have 10 consecutive quarters with margin improvement in Denmark, and the rolling 12 margin has gone from -3.3% to +6.1% over this period. Our extensive work on the new project in Denmark resulted in signing rental agreements for another new nursing home with a total of 88 places scheduled to open for care receivers in 2030.

Speaker #2: EBITDA this quarter increased to SEK 13 million, corresponding to a margin of 3.7%, which is up from 0.3% last year. The positive earnings development was driven by higher occupancy in own management and by operational improvements.

Speaker #2: We now have 10 consecutive quarters with margin improvement in Denmark, and the rolling 12-month margin has gone from negative 3.3% to positive 6.1% over this period.

Speaker #2: Our extensive work on the new projects in Denmark resulted in signing rental agreements for another new nursing home with a total of 88 places, scheduled to open for care receivers in 2030.

Speaker #2: We have now signed three rental agreements this year, which demonstrate the improved market conditions in Denmark following the 2025 elderly care reform. Additional capacity expansion is expected within own management, where our focus and future growth potential is in Denmark.

Benno Eliasson: We have now three rental agreements signed this year, which demonstrate the improved market condition in Denmark following the 2025 Elderly Care Report. Additional capacity expansion is expected within Own Management, where our focus and future growth potential is in Denmark. Finally, Klara. Klara saw lower net sales due to the weaker demand across several of the services. Net sales decreased by 11% to 93 million SEK. Historically strong supply of nurses in the labor market has led some customers to employ their own staff instead of purchasing external services from companies like Klara. For Klara, we now, however, see signs that the negative revenue trend is starting to change, and we expect better revenue development going forward as we now also are improving the mix towards services with higher demand.

Speaker #2: And finally, Klara. Klara saw lower net sales due to weaker demand across several of the services. Net sales decreased by 11%, to SEK 93 million.

Benno Eliasson: Historically strong supply of nurses in the labor market has led some customers to employ their own staff instead of purchasing external services from companies like Klara. For Klara, we now, however, see signs that the negative revenue trend is starting to change, and we expect better revenue development going forward as we now also are improving the mix towards services with higher demand. EBITDA amounted to 8 million SEK with a margin of 8.6% in the quarter and 10.5% on a rolling 12 basis. The good margin levels reflects the well-managed cost adjustment and continued focus on profitability, even in a softer market environment. With that, back to you, Mark.

Speaker #2: Historically, a strong supply of nurses in the labor market has led some customers to employ their own staff instead of purchasing external services from companies like Klara.

Speaker #2: For Klara, we now, however, see signs that the negative revenue trend is starting to change, and we expect better revenue development going forward, as we now also are improving the mix towards services with higher demand.

Benno Eliasson: EBITDA amounted to 8 million SEK with a margin of 8.6% in the quarter and 10.5% on a rolling 12 basis. The good margin levels reflects the well-managed cost adjustment and continued focus on profitability, even in a softer market environment. With that, back to you, Mark.

Speaker #2: EBITDA amounted to SEK 8 million, with a margin of 8.6% in the quarter and 10.5% on a rolling 12-month basis. The good margin level reflects the well-managed cost adjustments and continued focus on profitability, even in a softer market environment.

Speaker #2: And with that, back to you, Mark.

Speaker #1: Thank you, Beno. Our financial targets remain as we drive profitable growth, strong margins, and disciplined leverage. In line with our commitment, we continue to deliver on all three targets, also in Q2.

Mark Jensen: Thank you, Benno. Our financial targets remain as we drive profitable growth, strong margins, and disciplined leverage. In line with our commitment, we continue to deliver on all three targets also in Q2. The rolling 12 months growth rate is now at 13%, which is well above our growth target, thanks to the high pace in acquisitions and good organic growth. Rolling 12 profitability landed at 10.0%, which is above the target of 9.5%. We will continue to invest in people, quality, and growth. Our leverage is slightly down to a ratio of 2.4x net debt to EBITDA, below our target of 3.25x. We maintain our financial capacity to engage in the right acquisitions. Before we open for questions, I would like to provide an outlook post Q2. Ambea is the only Nordic care provider with a new tailor-made group-wide quality management system.

Speaker #1: The rolling 12-month growth rate is now at 13%, which is well above our growth target, thanks to the high pace in acquisitions and good organic growth.

Speaker #1: Rolling 12 profitability landed at 10.0%, which is above the target of 9.5%. We will continue to invest in people, quality, and growth. Our leverage is slightly down to a ratio of 2.4 times net debt to EBITDA, below our target of 3.25 times.

Speaker #1: We maintain our financial capacity to engage in the right acquisitions. Before we open for questions, I would like to provide an outlook post Q2.

Speaker #1: Ambea is the only Nordic care provider with a new, tailor-made, group-wide quality management system. We will continue the rollout of the new system to all business areas during the remaining part of the year.

Mark Jensen: We will continue the rollout of the new system to all business areas during the remaining part of the year. With MiraQ, we have further optimized and standardized our operational quality work, improved system performance and features, as well as data quality and access to predictive analysis and cross-country quality improvements. For the remaining part of the year, we will see more bolt-on acquisitions in several business areas supporting growth and value-adding capital allocation. Care needs are increasing, and we remain committed to sign rental agreements for more care homes, adding to the future organic growth, supporting the Nordic society. Regarding the recommended public offer to the shareholders in Humana, the prospectus is scheduled to be published on 24 August, with the acceptance period expected to commence on 25 August. Over the next five years, we will employ 3,500 new care professionals to support the organic capacity expansion.

Speaker #1: With MiraQ, we have further optimized and standardized our operational quality work, improved system performance and features, as well as data quality and access to predictive analysis and cross-country quality improvements.

Speaker #1: For the remaining part of the year, we will see more bolt-on acquisitions in several business areas, supporting growth and value-adding capital allocation. Care needs are increasing, and we remain committed to signing rental agreements for more care homes, adding to future organic growth and supporting the Nordic society.

Speaker #1: And regarding the recommended public offer to the shareholders in Humorna, the prospectus is scheduled to be published on August 24, with the acceptance period expected to commence on August 25.

Speaker #1: Over the next five years, we will employ 3,500 new care professionals to support the organic capacity expansion. Being an employer of choice is important, and to maintain a strong employer brand, we will continue to invest in local leadership.

Mark Jensen: Being an employer of choice is important, and to maintain a strong employer brand, we will continue to invest in work environment, competence development, and local leadership. Once again, our teams in four countries across more than 1,000 care units have delivered qualitative care to 18,000 care receivers, all with a need for a good and independent life. It is an important and rewarding contribution to people and society, for which we are proud. Thanks to our employees, their high competence, and attention to operational delivery, we also reach healthy financial results, which gives us the opportunity to do more of what we are here for, making the world a little better one person at a time. This concludes our presentation, and we will now open for questions.

Speaker #1: Once again, our teams in four countries, across more than 1,000 care units, have delivered qualitative care to 18,000 care receivers—all with a need for a good and independent life.

Speaker #1: It is an important and rewarding contribution to people and society, for which we are proud. Thanks to our employees, their high competence, and attention to operational delivery, we also achieve healthy financial results. This gives us the opportunity to do more of what we're here for—making the world a little better, one person at a time.

Speaker #1: And this concludes our presentation, and we will now open for questions.

Speaker #3: Thank you, dear participants. As a reminder, if you wish to ask a question, please press *11 on your telephone keypad and wait for your name to be announced.

Operator: Thank you, dear participants. As a reminder, if you wish to ask a question, please press star 1 1 on your telephone keypad and wait for your name to be announced. To withdraw your question, please press star 1 and 1 again. Please stand by while we compile the queue in the roster. This will take a few moments. And now we are going to take our first question. The question comes from the line of Björn Olsson from SEB. Your line is open. Please ask your question.

Speaker #3: To withdraw your question, please press star one, and then one again. Bell will then compile the Q&A roster. This will take a few moments.

Speaker #3: And now we're going to take our first question. The question comes from the line of Björn Olsson from SEB. Your line is open.

Operator: And now we are going to take our first question. The question comes from the line of Björn Olsson from SEB. Your line is open. Please ask your question.

Speaker #3: Please ask your question.

Björn Olsson: Good morning. First, a question on the pipeline. One of your first slides, you illustrated the pipeline, and clearly Altiden is the main driver of the increase. What type of pace of additional contracts are you expecting to sign for H2? How should we view the trajectory of growth here?

Speaker #4: Good morning. First, a question on the pipeline. On one of your first slides, you illustrated the pipeline, and clearly Alltiden is the main driver of the increase.

Speaker #4: What type of pace of additional contracts are you expecting to sign for HQ? How should we view the trajectory of growth here?

Speaker #1: Yeah, thank you so much. I mean, we expect to sign contracts also in the second half of the year. And as I mentioned when we went through that slide, we are aiming for Vardaga to deliver in line with the full-year numbers for 2025.

Mark Jensen: Yeah. Thank you so much. We expect to sign contracts also in the second half of the year. As I mentioned, when we went through that slide, we are aiming for Vardaga to deliver in line with the full-year numbers for 2025. You can see we are not completely there yet, so that would mean a number of new contracts for Vardaga yet to go. We also expect to sign further contracts in Altiden in Denmark in the second half of the year. Then we will see contributions also in Norway and Finland. But, as the care homes there are in general smaller than the nursing homes we are signing in Vardaga and predominantly in Altiden, those additions from Norway and Finland will be more limited.

Speaker #1: You can see we are not completely there yet, so that will mean a number of new contracts for Vardaga as the year goes on. We also expect to sign further contracts in Altiden and Denmark in the second half of the year.

Speaker #1: And then we will see contributions also in Norway and Finland. But as the care homes there are in general smaller than the nursing homes, we are signing in Vardaga and predominantly in Altiden, and those additions from Norway and Finland will be more limited.

Speaker #4: Okay, thanks. And you also started by mentioning the election coming up in Sweden in a few weeks. Have you any—I mean, you are in touch with several local politicians and municipalities.

Björn Olsson: Okay. Thanks. You also started by mentioning the election coming up in Sweden in a few weeks. You are in touch with several local politicians and municipalities. Have you any sense of any risks in conjunction with the election? Because, the national debate is probably more noise than actual impact for you. Or how should we view this?

Speaker #4: Do you have any sense of risks in conjunction with the election? Because, I mean, the national debate is probably more noise than actual impact for you, or how should we view this?

Speaker #1: Yeah. I mean, elections, yes, always exciting, as the various parties are launching their plans and ideas for the next four-year period. And in Sweden, you have all the elections on the same day—both for municipalities, regions, and the national parliament on the same day.

Mark Jensen: Yeah. Election year is always exciting, as the various parties are launching their plans and ideas for the next four-year period. In Sweden, you have all the elections on the same day, both for municipalities, regions, and the national parliament on the same day, which is a little different from the other Nordic countries. That means that we will see changes in the ruling coalitions for the next four years. Our customers are the municipalities, and we work with municipalities that are led both by left side of politics, right side of politics, and by coalitions in the middle. We have done that for many years over many elections, and we will continue to do that also after this election.

Speaker #1: Which is a little different from the other Nordic countries. And that means that we will see changes in the coalitions—the ruling coalitions—for the next four years.

Speaker #1: Our customers are the municipalities, and we work with municipalities that are led both by left-sider policies to right-sider politics, and by coalitions in the middle.

Speaker #1: And we have done that for many years, over many elections, and we will continue to do that also after this election. In general, we think it's good that the public debate on the future of the welfare society is taking place, and especially within the care sector as the needs are increasing significantly over the next two or three mandate periods for the politicians.

Mark Jensen: In general, we think it's good that the public debate on the future of the welfare society is taking place, and especially within the care sector, as the needs are increasing significantly, over the next two or three mandate periods for the politicians. It is very important that the society as such will accelerate the capacity expansion, especially within elderly care. We believe we have an increasingly important role to play in this field, also in Sweden.

Speaker #1: And it is very important that society as such will accelerate the capacity expansion, especially within elderly care. We believe we have an increasingly important role to play in this field, also in Sweden.

Björn Olsson: Makes sense. Just finally on the Humana acquisition, do you have any update on the progress of the acquisition? Or have anything changed in your view of the deal?

Speaker #4: Makes sense. And just finally, on the Humorna acquisition, do you have any update on the progress of the acquisition? Or has anything sort of changed in your view of the deal?

Mark Jensen: We are following a plan exactly as we communicated, when we announced the public offer to the shareholders of Humana on 29 June. We plan to launch the prospectus on 24 August, as I said, next week. Everything is following plan as we have communicated earlier. So there's nothing else to communicate on that particular matter.

Speaker #1: We are following a plan exactly as we communicated when we announced the public offer to the shareholders of Humorna on June 29.

Speaker #1: And we planned to launch the prospectus on August 24th. As I said, next week, and everything is following plan as we have communicated earlier.

Speaker #1: So there's nothing else to communicate on that particular matter. Thank you.

Björn Olsson: Okay. Thank you.

Mark Jensen: Thank you.

Speaker #3: Thank you so much. Now we're going to take our next question. The question comes from the line of Christopher Liliaberg from DNB Carnegie.

Operator: Thank you so much. Now we are going to take our next question. The question comes to line of Kristofer Liljeberg from DNB Carnegie. Your line is open. Please ask your question.

Speaker #3: Your line is open. Please ask your question.

Speaker #4: Yeah, thank you. First one relates to the modern targets and the fact that you are now trending about that. So, what's your view on that?

Kristofer Liljeberg: Yeah. Thank you. First one relates to the margin target and the fact that you are now trending above that. What is your view on that? Second question, if you maybe could give a little bit more explanation for what appeared to be a very fast ramp-up in new elderly care units in Sweden. Then my third and final question relates to Norway, and you mentioned the higher compensation. Was that just a pure mix effect or more of a general trend? Thank you.

Speaker #4: Second question: if you could maybe give a little bit more explanation for what appeared to be a very fast ramp-up in new elderly care units in Sweden.

Speaker #4: And then my third and final question relates to Norway. You mentioned the higher compensation—was that just a pure mix effect, or more of a general trend?

Speaker #4: Thank you.

Speaker #1: Yeah. So the margin target—we are holding on to the 9.5% margin target. We think it's also a wise thing to do in light of the potential acquisition of Humorna and the offer to the shareholders of Humorna, as we communicated when we launched that in June.

Mark Jensen: Yeah. The margin target, we are holding on to the 9.5% margin target, and we think it is also a wise thing to do in the light of the potential acquisition of Humana and the offer to the shareholders of Humana, as we communicated when we launched that in June. Changing that now is not relevant. It is also important for us to make sure that we have sufficient funds to invest in people, capacity expansion, competent development, local leadership, and quality overall. So we are holding on to that as we are holding on to our other two financial targets. In terms of the ramp-up pace for Swedish elderly care, Werner, will you comment on that?

Speaker #1: So, changing that now is not relevant. It's also important for us to make sure that we have sufficient funds to invest in people, capacity expansion, competence development, local leadership, and overall quality.

Speaker #1: So, we are holding on to that as we are holding on to our other two financial targets. In terms of the ramp-up pace for Swedish elderly care, Venna, will you comment on that?

Mark Jensen: Yeah. That is correct, as you said, that we have had very good ramp-up or very rapid occupancy improvement in more or less all of the new establishments. You have been, you can say, a little bit coincident that the municipality closed one of their own nursing homes in one of the municipalities. In another municipality, they have actually just before we open also closed one of their own, and then we have a third municipality that was built up for a queue before we open. So it is different from every new establishment. It is a bit different, but this time we have a really good pace in at least three of these five that are more or less already full.

Benno Eliasson: Yeah. That is correct, as you said, that we have had very good ramp-up or very rapid occupancy improvement in more or less all of the new establishments. You have been, you can say, a little bit coincident that the municipality closed one of their own nursing homes in one of the municipalities. In another municipality, they have actually just before we open also closed one of their own, and then we have a third municipality that was built up for a queue before we open. So it is different from every new establishment. It is a bit different, but this time we have a really good pace in at least three of these five that are more or less already full.

Speaker #2: Yeah, that's correct. As you said, we have had very good ramp-up, or very rapid occupancy improvement, in more or less all of the new establishments.

Speaker #2: And we have been a little bit, you can say, a little bit coincident that the municipality closed one of their own nursing homes in one of the municipalities. In another municipality, they have actually, just before we opened, also closed one of their own.

Speaker #2: And then we have a third municipality that was built up for a queue before we opened, so it's different from every new establishment. It is a bit different.

Speaker #2: But this time, we have a really good pace in at least three of these five that are more or less already full.

Speaker #1: And then the final question on Norway. I mean, we have not seen any changes in compensation as such, but in terms of occupancy, in social care for adults, it has been more stable, as Benno commented.

Mark Jensen: Then the final question on Norway, we have not seen any changes in compensation as such, but in terms of occupancy in social care for adults, it has been more stable as Benno commented, which has been the issue in the previous quarters that we have had quite high frequency of move-outs and move-ins in different parts of the country, which makes it difficult for staffing efficiency. That has been more stable this quarter. That has helped us. We have had also a high occupancy level in childcare in Norway, which is performing very strong again this quarter, which has helped us. Then we have implemented various operational improvements in the Norwegian business over the last quarters, which has proven to show results already now. As we also said, we expect that we will continue to improve performance in Norway over the coming quarters.

Speaker #1: This has been the issue in the previous quarters, that we have had quite a high frequency of move-outs and move-ins in different parts of the country, which makes it difficult for staffing efficiency.

Speaker #1: That has been more stable this quarter. That has helped us. We have also had a high occupancy level in childcare in Norway, which is performing very strongly.

Speaker #1: Again, this quarter, which has helped us. And then we have implemented various operational improvements in the Norwegian business over the last quarters, which have proven to show results already now.

Speaker #1: And as we also said, we expect that we will continue to improve performance in Norway over the coming quarters.

Speaker #3: Excuse me, Christopher. Any further questions?

Operator: Excuse me, Kristofer, any further questions?

Speaker #4: No, sorry. Thank you.

Kristofer Liljeberg: No, sorry. Thank you.

Speaker #3: Thank you.

Benno Eliasson: Thank you.

Operator: Thank you.

Benno Eliasson: Thank you.

Speaker #1: Thank you.

Speaker #3: Now we're going to take our next question. The next question comes from Julia Antelle Strand at Handelsbanken. Your line is open. Please ask your question.

Operator: Now we are going to take our next question. The next question comes line of Julia Angeli Strand from Handelsbanken. Your line is open. Please ask your question.

Julia Angeli Strand: Hi. Thank you for taking my questions. I will take them one by one. I will start with Stendi. Given the strong performance here, and given that you have communicated that H2 will be even better in terms of margins year over year, could you give some color on how much this quarterly performance have improved your H2 outlook? Is it unchanged, or has it improved?

Speaker #5: Hi. Thank you for taking my questions. I'll take them one by one. I'll start with Stendi. Given the strong performance here, and given that you have communicated that H2 will be even better in terms of margins year-over-year, could you give some color on how much this quarterly performance has improved your H2 outlook?

Speaker #5: Is it unchanged, or has it improved?

Speaker #1: It is basically unchanged. The outlook for the second half of the year—we have said that a margin level of 8 to 9% in Norway, with the size of the business we have now, is a good level.

Mark Jensen: It is basically unchanged, the outlook for the second half of the year. We have said that a margin level of 8% to 9% in Norway with the size of the business we have now is a good level. We are not yet there. We are approaching, of course, the 8%, and the likelihood of getting into that range is higher now than it was last quarter from the strong Q2 performance. Let us see where the year will take us. But the outlook for the second half is unchanged, but still positive.

Speaker #1: We are not yet there. We are approaching, of course, the 8%. And the likelihood of getting into that range is higher now than it was last quarter, from the strong Q2 performance.

Speaker #1: But let's see where the year will take us. The outlook for the second half is unchanged, but still positive.

Speaker #5: Okay, got it. And then on Validia, you mentioned some margin pressure and that H2 will be a year with a high opening pace. So how should we think about the margin pressure when you have a lot of openings they are doing in H2 as well?

Julia Angeli Strand: Okay. Got it. On Validia, you mentioned some margin pressure and that H2 will be a year with high opening pace. How should we think about the margin pressure when you have a lot of openings there during H2 as well?

Benno Eliasson: There is margin pressure, you can say, now a little bit from the new established business area in Child Welfare. We said at 15 percentage point on the growth from last year is the new area where the profitability now is lower, and also there are some transaction integration costs related with the acquisitions. That will improve going forward gradually, we hope. In the second half, we are also opening two new units in the beginning of Q4 that will short-term probably hurt the margins a little bit, as it always does when you open large units with the full rental cost and gradually coming in occupancy. That will probably affect Validia a little bit in the later part of the year.

Speaker #1: There is margin pressure. You can say now a little bit from the newly established business area in child welfare. We said that 15% of the growth from last year is in the new area, where the profitability now is lower. Also, there are some transaction integration costs related to these three acquisitions.

Speaker #1: That will improve gradually going forward, we hope. And then in the second half, we are also opening two new units at the beginning of the fourth quarter.

Speaker #1: That will, in the short term, probably hurt the margins a little bit, as it always does when you open large units with a full rental cost and gradually increasing occupancy.

Speaker #1: That will probably affect Validia a little bit in the latter part of the year.

Speaker #5: Okay, so if we adjust for normal seasonality effects, will the margin pressure increase from this quarter, or be the same?

Julia Angeli Strand: Okay. If we adjust for normal seasonality effects, will the margin pressure increase from this quarter or be the same?

Benno Eliasson: A little bit hard to say. I think in Q3, the margin pressure from lower margins in Child Welfare will ease a little bit gradually, I could say. Then, of course, depending on how fast we can ramp up the new unit in Q4, that could also, of course, as said, hurt the margin. But how much? It is yet to be seen because we do not know the occupancy development after the start of that unit.

Speaker #1: A little bit hard to say. I think in the third quarter, the margin pressure from lower margins in child welfare will ease a little bit, gradually, as we say.

Speaker #1: But then, of course, depending on how fast we can ramp up the new units in the fourth quarter, that could also, of course, as said, hurt the margin.

Speaker #1: But how much is still to be seen, because we don't know about the occupancy development after the start of that unit.

Speaker #5: Okay. And then my last question. On Mona, they have some units facing some challenges or have varying performance, and Norrmalm being one of them.

Julia Angeli Strand: Okay. My last question on Humana. They have some units facing some challenges or has varying performance, and Norway being one of them. Given that you have experience from managing a somewhat challenged Norwegian business following a large acquisition, could you share some thoughts on how you plan to address it in terms of profitability and occupancy levels?

Speaker #5: Given your experience in managing a somewhat challenged Norwegian business following a large acquisition, could you share some thoughts on how you plan to address the situation in terms of profitability and occupancy levels?

Mark Jensen: In general, we can say that what we said when we announced the offer to the shareholders of Humana still stands. On the presentation there on 29 June, we were talking about the strength of combining the two companies. We think that is unchanged, and we have no other opinion than what we communicated on 29 June. In a process like this, which is quite complex, and when there are certain steps to be taken in a specific order, we need to take it step by step, which we are doing, and in that order. We will come at a point in time, hopefully, to a place where we can get more insight on the business, and we can start the integration planning and all that, but that is too early for now.

Speaker #1: In general, we can say that what we stated when we announced the offer to the shareholders of Humana still stands. And in the presentation on the 29th of June, we were talking about the strength of combining the two companies.

Speaker #1: We think that is unchanged, and we have no other opinion about what was communicated on June 29th. In a process like this, which is quite complex, and when there are certain steps to be taken in a specific order, we need to take it step by step, which we are doing.

Speaker #1: And in that order, we will come to a point in time, hopefully, where we can get more insights on the business, and we can start the integration planning and all that.

Speaker #1: But that's too early for now. So, we basically have no other view than the view we communicated on June 29.

Mark Jensen: We basically have no other view than the view we communicate on 29 June.

Julia Angeli Strand: Okay, got it. Those were my questions. Thank you.

Speaker #5: Okay, got it. Those were my questions. Thank you.

Speaker #3: Thank you. Now we're going to take our next question. The next question comes from Jakob Andersson at Danske Bank. Your line is open.

Operator: Thank you. Now we are going to take our next question. The next question comes in of Jacob Andersson from Danske Bank. Your line is open, please ask your question.

Speaker #3: Please ask your question.

Speaker #6: Good morning, Mark and Dano. I hope you can hear me. I just have a couple of questions, starting off with Nikita. You continue to deliver strong margins once again, but was the improvement in occupancy broad-based across both disability as well as individual and family, or mainly driven by a specific segment?

Jacob Andersson: Good morning, Mark and Daniel. I hope you can hear me. I just have a couple of questions, starting off with Nytida. You continue to deliver strong margins once again. Was the improvement in occupancy broad-based across both disability as well as individual family, or mainly driven by a specific segment?

Mark Jensen: The improvement in occupancy was rather broad. It is not a huge improvement from last year, but still some improvement from last year, and that is in all sub-segments. We have more care received both in the disability care and the individual family care. So that is a rather broad-based occupancy improvement on a low single-digit number.

Speaker #1: The improving occupancy, rather broad, is not a huge improvement from last year, but still some improvement from last year. And that is in all subsegments.

Speaker #1: We have more care receivers both in disability care and in individual family care. So, that is a rather broad-based occupancy improvement on a low single-digit number.

Speaker #6: Okay, perfect. And just one on Stendi. So, you mentioned a slight uptick in demand, while occupancy is still lower year over year. But is the improvement in demand specifically within adult care, where you previously had some challenges, or somewhere else in Stendi?

Jacob Andersson: Okay, perfect. And just one on Stendi. You mentioned a slight uptick in demand, while occupancy is still lower year-over-year. But is the improvement in demand specifically within adult care or where you previously had seen challenges or somewhere else in Stendi?

Speaker #1: So the occupancy was higher in child welfare in Norway this quarter compared to the same quarter last year. In adult care, it was a little lower, but more stable.

Mark Jensen: The occupancy was higher in Child Welfare in Norway this quarter compared to the same quarter last year. In adult care, it was a little lower but more stable. So that is the occupancy level in Norway, if that is the answer to your question, otherwise, please repeat it.

Speaker #1: So that's the occupancy level in Norway. If that answers your question; otherwise, please repeat it.

Speaker #6: No, no, that was the answer. And then just the final one on Vardag. You said in Q1 that contracts with total revenues of 200 million SEK are set to end in the coming 12 months.

Jacob Andersson: No, that was the answer. Then just the final one on Vardaga. You said in Q1 that contracts with total revenues of 200 million SEK are set to end in the coming 12 months. But could you just clarify the underlying reason for why these contracts are ending? Is it your own decision not to renew because it is no longer attractive or competition or municipality is choosing to bring operations in-house or?

Speaker #6: But could you just clarify the underlying reason for why these contracts are ending? Is it your own decision not to renew because it's no longer attractive or competition or municipalities choosing to bring operations in-house or?

Mark Jensen: Yeah. These contracts manage, they run out at a certain point of time, and then the municipality need to re-tender. If they don't re-tender, they can also have the possibility to take them back to run them by themselves. This is I think it's seven or eight units or something. I think more than half of them are units that the municipality decided when the contract is ended, to take back home, so to speak. A couple of them are that we have lost the re-tender to another operator. I think in this case, it is all a non-listed operator with lower prices than we offered. It is a combination of these two.

Speaker #1: Yeah, these contracts are managed. They run out at a certain point in time, and then the municipality needs to re-tender. If they don't re-tender, they also have the possibility to take them back and run them themselves.

Speaker #1: This is, I think it's seven or eight units or something. I think more than half of them are units that the municipality decided, when the contract ended, to take back home, so to speak.

Speaker #1: And a couple of them are that we have lost the re-tender to another operator. I think in this case, it is all non-listed operators with lower prices than we offered.

Speaker #1: So this is a combination of these two.

Speaker #6: Okay. Perfect. No more questions from me.

Jacob Andersson: Okay, perfect. No more questions from me.

Speaker #3: Thank you. Now we're going to take our next question. The next question comes from Philip Eckengren at Nordea. Your line is open.

Operator: Thank you. Now we're going to take our next question. The next question comes in of Philip Ekengren from Nordea. Your line is open, please ask your question.

Speaker #3: Please ask your question.

Speaker #7: Yes, thank you, and good morning, all. Just going back to the election, I appreciate the comments you made earlier. But have you noticed any changes in dialogues with the municipalities or regions over the past, let's say, year or two years?

Philip Ekengren: Yes, thank you. Good morning, all. Just going back to the election, I appreciate the comments you made earlier, but have you noticed any changes in dialogues with the municipalities or regions over the past, let's say, a year or two years, or have you seen a shift in the way that they have discussions with you, please?

Speaker #7: Or have you seen a shift in the way that they have discussions with you, please?

Mark Jensen: It's difficult to say because we have several hundred municipalities that we have as our customers and partners. So of course, there are changes from municipality to municipality, and shifts now and then in different directions. But I would say over the last election term here, the last four years, it has been quite stable. No big surprises from what was said at the beginning and how they have decided to run the welfare services within the municipality's responsibility over the last four years. I won't say that. If anything, we can hear from more municipalities that, of course, the needs are increasing. We can see it in the data also that the needs are increasing. We also know it is increasingly difficult to get the permit to move in to a nursing home, as we said, but within elderly care.

Speaker #1: It's difficult to say, because we have several hundred municipalities that we have as our customers and partners. So, of course, there are changes from municipality to municipality and shifts now and then in different directions.

Speaker #1: But I would say, over the last election term here—the last four years—it has been quite stable. So, no big surprises from what was said at the beginning and how they have decided to run the welfare services within the municipalities’ responsibility over the last four years.

Speaker #1: So I won't say that. If anything, we can hear from more municipalities that, of course, the needs are increasing. We can see it in the data also, that the needs are increasing.

Speaker #1: We also know it is increasingly difficult to get the permit to move into a nursing home, as an example, within elderly care. And that the welfare services as such are more constrained from a municipal perspective because they're looking for new projects, they're looking for ways to handle the increased pressure from the demographics as the population is getting older.

Mark Jensen: And that the welfare services as such is more constrained from a municipal perspective because they're looking for new projects, they're looking for ways to handle the increased pressure from the demographics as the population is getting older. If anything, that is more evident now than it was three or four years ago. And we know, of course, that this will continue, and we are certain that with our solutions and our qualitative services, that there will be a higher need to use us in the mix going forward.

Speaker #1: So, if anything, that is more evident now than it was three or four years ago. And we think, we know of course, that this will continue. We are certain that with our solutions and our quality team services, there will be a higher need to use us in the mix going forward.

Speaker #6: Thank you, that clarifies a bit. And then, just one final thing—going back to Stendi. You talk about some union occupancy down in adult.

Philip Ekengren: Thank you. That clarifies a bit. Then just one final thing, going back to Stendi. You talk about some year-on-year occupancy down in adult. What's constraining that? What's the problem there?

Speaker #6: What's constraining that? What's the problem there?

Speaker #1: I think the economic situation of the municipalities in Norway—there are even more municipalities in Norway than in Sweden, and many of them are small.

Mark Jensen: I think the economy situation of the municipalities in Norway, there are even more municipalities in Norway than in Sweden, and many of them are small. Their financial situation is increasingly constrained, which of course gives them headaches in terms of making sure that their budgets will meet the needs. And we can see some municipalities that have changed their purchasing behavior versus earlier. And we are adapting to that, of course, and changing our offering. We are focusing on units with higher capacity to make sure that we can deliver high-quality care at a price that the municipalities can afford. And some of these changes are giving impact in this quarter, and they will continue to give impact in the coming quarters. But even in a rich country like Norway, municipalities are constrained financially. Many are.

Speaker #1: And their financial situation is increasingly constrained, which, of course, gives them headaches in terms of making sure that the budgets will meet the needs.

Speaker #1: And we can see some municipalities that have changed their purchasing behavior compared to earlier. We are, of course, adapting to that and changing our offering.

Mark Jensen: And we are adapting to that, of course, and changing our offering. We are focusing on units with higher capacity to make sure that we can deliver high-quality care at a price that the municipalities can afford. And some of these changes are giving impact in this quarter, and they will continue to give impact in the coming quarters. But even in a rich country like Norway, municipalities are constrained financially. Many are. It is of course important that we can deliver high-quality services at a price which is in line with both the needs of the care receiver, but of course also the financial situation of the municipalities.

Speaker #1: We are focusing on units with higher capacity to make sure that we can deliver high-quality care at a price that the municipalities can afford.

Speaker #1: And some of these changes are having an impact this quarter, and they will continue to have an impact in the coming quarters. But even in a rich country like Norway, municipalities are financially constrained.

Speaker #1: Many are. And it's, of course, important that we can deliver high-quality services at a price which is in line with both the needs of the care receiver, but, of course, also the financial situation of the municipalities.

Mark Jensen: It is of course important that we can deliver high-quality services at a price which is in line with both the needs of the care receiver, but of course also the financial situation of the municipalities.

Speaker #6: Perfect. Thank you very much. I'll get back into the queue.

Philip Ekengren: Perfect. Thank you very much. I will get back into the queue.

Speaker #3: Thank you. Now we're going to take our next question. The question comes from the line of Philip Wetterquist from SB1 Markets. Your line is open.

Operator: Thank you. Now we are going to take our next question, and the question comes from the line of Filip Wetterqvist from SB1 Markets. Your line is open. Please ask your question.

Speaker #3: Please ask your question.

Filip Wetterqvist: Good morning, guys. I have three questions. I will take them one by one. The first one coming back to the contract terminations in Vardaga. Can you give us some color on the quarterly split? When are we expected to see the contracts end? Are they front or back in load? Some color on that would be helpful.

Speaker #5: Good morning, guys. I have three questions, and I'll take them one by one. The first one, coming back to the contract terminations in Vardag—can you give us some color on the quarterly split?

Speaker #5: When are we expected to see the contracts end? Are they front- or back-loaded? Some color on that would be helpful.

Speaker #1: I don't have the exact date, but I know that there will be, every quarter now for the coming four quarters, some contracts that will be handled back.

Mark Jensen: I do not have the exact date, but I know that there will be every quarter now, the coming four quarters, some contracts that will be handed back. I think it is rather evenly spread over the coming four quarters.

Speaker #1: So, I think it's rather evenly spread over the coming four quarters.

Speaker #5: All right. Thank you. And then, in Nitida, have you seen any shifts in the length of stay and in childcare? Do you see any changes in the average age of the children staying at your units?

Filip Wetterqvist: All right, thank you. In Nytida, have you seen any shifts in the length of stay and in Child Welfare? Do you see any changes in the average age of the children staying at your units?

Mark Jensen: Not particularly. In general, there is a tendency towards somewhat lower length of stay across social care services. That is very individual because that depends on the progression of each and every care receiver, depending on the plan for that care receiver made by the municipality's social worker, in collaboration with our teams, of course. I would say no general trend in this quarter, but over time we see shorter stays across social care services in general.

Speaker #1: Not particularly. I mean, in general, there's a tendency towards a somewhat lower length of stay across social care services. But obviously, that is very individual, because it depends on the progression of each and every care receiver, depending on the plan for that care receiver.

Speaker #1: Made by the municipalities. Social worker. So, in collaboration with our teams, of course. So, I would say no general trend in this quarter. But over time, we see shorter stays across social care services in general.

Filip Wetterqvist: You are saying that there is some risk of some lower occupancy going forward if we see-

Speaker #5: So you say that there's some risk of lower occupancy going forward if we see a trend of...

Mark Jensen: No

Mark Jensen: No.

Filip Wetterqvist: a trend of-

Mark Jensen: No, I do not think it is that evident that it will impact and should be flagged as a risk for the coming quarters. That is not what we see. Of course, you look at Nytida and Nytida services, the majority of the services are in disability care, where the length of stay are often long. They can be lifelong. We are not as highly exposed to individual and family care as to disability care, and where you have the shorter length of stays predominantly individual and family care. I would not flag it as a risk and nothing that should be counted on the negative side for the coming quarters.

Speaker #1: No, I don't think it's that evident that it will impact, and it should be flagged as a risk for the coming quarters. That's not what we see.

Speaker #1: And of course, if you look at Nytida and Nytida services, I mean, the majority of the services are in disability care, where the length of stay is often long.

Speaker #1: There can be lifelong care. So we are not as highly exposed to individual and family care as to disability care, and where you have the shorter length of stay is predominantly individual and family care.

Speaker #1: So I will not flag it as a risk, and it's nothing that should be counted on the negative side for the common quarters.

Speaker #5: All right. Perfect. And then, last question on the Humana acquisition. You're guiding for about SEK 120 million of synergies, which, as I understand it, mainly relates to overhead or group functions.

Filip Wetterqvist: All right, perfect. Last question on the Humana acquisition. You are guided for about SEK 120 million of synergies, which as I understand it, mainly relates to overhead or group functions. Do you see additional operational synergies within the business areas as well?

Speaker #5: So, do you see additional operational synergies within the business areas as well?

Speaker #1: We have no other view than what we communicated on June 29th regarding synergies. So that's the SEK 120 million that we communicated there.

Mark Jensen: We have no other view than what we communicated on 29 June in regards to synergies. That is the SEK 120 million that we communicated there, and predominantly in group functions and group costs overall. We also confirmed the financial targets on 29 June if the companies would be combined, meaning that the EBITDA margin target that we have of 9.5%, we will hold on to that. We also said that we believe that we will be back at that level on a runway basis by the end of 2028. That will, of course, include some operational improvements to get there. That is just repeating what we communicated on 29 June.

Speaker #1: And predominantly in group functions and group costs overall. And then we also confirmed the financial targets on June 29th. If the companies would be combined—meaning that the EBITDA margin target that we have, which was 9.5%—we would hold on to that.

Speaker #1: And we also said that we believe we will be back at that level on a run-rate basis by the end of 2028. And that will, of course, include some operational improvements.

Speaker #1: To get there. So that's just repeating what we communicated on June 29.

Speaker #5: All right. Perfect. Thank you.

Filip Wetterqvist: All right. Perfect. Thank you.

Speaker #3: Thank you. Dear participants, as a reminder, if you wish to ask a question, please press star, 1, 1. Notes helpful on your keypad. And now we're going to take our next question.

Operator: Thank you. Dear participants, as a reminder, if you wish to ask a question, please press star one one on your telephone keypad. Now we are going to take our next question. The question comes to line of Julia Angeli Strand from Handelsbanken. Your line is open. Please ask your question.

Speaker #3: And the question comes from Yulia Angelis Strand from Handelsbanken. Your line is open. Please ask your question.

Julia Angeli Strand: Hi. Just a follow-up question on the bolt-on acquisitions. You mentioned that we should anticipate in Q2. Does this materially affect the indicative debt level that we received when you announced the Humana acquisition?

Speaker #4: Hi, just a follow-up question on the Bolton acquisitions. You mentioned that we should anticipate them, too. Does this materially affect the indicative debt level that we received when you announced the Humana acquisition?

Mark Jensen: Sorry, repeat.

Speaker #1: Sorry, repeat the Bolton acquisitions. Will they materially impact the debt level? No, they won't. We did cash generation that we have, that you saw, with €900 million a year.

Julia Angeli Strand: The bolt-on acquisitions, will they materially impact the debt level?

Benno Eliasson: The bolt-on acquisitions, will they materially impact the debt level?

Mark Jensen: No, it won't. With this cash generation that we have, that you saw, SEK 900 million a year, we think that we still can have a lot of bolt-on acquisitions and dividends and also room for share buybacks included in the cash flow that we are generating on a yearly basis.

Speaker #1: We can we think that we still can have a lot of bold a lot of Bolton acquisitions and dividends and also room for share buybacks, included generating on generating on a yearly basis.

Julia Angeli Strand: Okay. Got it. Thank you.

Speaker #4: Okay. Got it. Thank you.

Speaker #3: Thank you. Dear speakers, please turn over for the questions for today. I would now like to hand the conference over to Mark Jensen for any closing remarks.

Operator: Thank you. Dear speakers, there are no further questions for today. I would now like to hand the conference over to Mark Jensen for any closing remarks.

Speaker #1: Thank you all for joining us today and for your continued interest in Ambea. The report for the third quarter will be published on November 4, 2026.

Mark Jensen: Thank you all for joining us today and for your continued interest in Ambea. The report for Q3 will be published on 4 November 2026. I wish you all a nice day. Stay safe and healthy. Thank you.

Speaker #1: So I wish you all a nice day. Stay safe and healthy. Thank you.

Operator: This concludes today's conference call. Thank you for participating. You may now all disconnect. Have a nice day.

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Q2 2026 Ambea AB (publ) Earnings Call

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