Q2 2026 Aktieselskabet Schouw & Co AS Earnings Call

August 14, 2026

[Company Representative] (Schouw & Co): Revenue is now expected to be DKK 34.8 to 37.1 billion. EBITDA raised in a spread of DKK 3.15 to 3.35 billion. Looking into each of our portfolio companies, I will start with BioMar. BioMar came out, as I said, with their Q2 report two days ago, so of course, a lot of the information has been given there, but let me just elaborate a little bit on BioMar anyhow. They had a record high Q2 feed volumes. Total volumes increased 3% to 395,000 tons, mainly growing in Ecuador and Australia. Their revenue increased 5% to DKK 4.2 billion in the quarter, based on higher volumes and also effect from raw material prices. Seeing a very solid development in the feed for shrimps, as I alluded to earlier on, as in Ecuador. EBITDA increased 2% to DKK 357 million. The feed segments delivered, however, 9% EBITDA growth.

Speaker #1: EBITDA is now expected to be DKK 3.48 to 3.71 billion, raised from a range of DKK 3.15 to 3.35 billion. Looking into each of our portfolio companies, we'll start with BioMar.

Speaker #1: Biomar came out, as I said, with their Q2 report two days ago, so of course a lot of information has been given there. But let me just elaborate a little bit on Biomar anyhow.

Speaker #1: They had record high Q2 feed volumes; total volumes increased 3% to 395,000 tons, mainly growing in Ecuador and Australia. Their revenue increased 5% to DKK 4.2 billion in the quarter.

Speaker #1: Based on higher volumes and also the effect from raw material prices, we are seeing very solid development in the feed for shrimps, as I alluded to earlier on, also in Ecuador.

Speaker #1: EBITDA increased 2% to 357 million. The feed segments delivered, however, 9% EBITDA growth. Profitability was hampered by IPO costs and also a transition of our Tech Solutions into a new business model in the market.

[Company Representative] (Schouw & Co): Profitability was hampered by IPO costs and also a transition of our tech solutions into a New-to-Market business model. We still see a very strong underlying momentum. We have secured new contracts in Norway. There is a strong and continued focus on formulation optimization and use of alternative raw materials to offset effects from El Niño. There is also positive expectations for volumes in the H2, and that means also that BioMar already two days ago raised their guidance, now expecting revenue between DKK 17 to 18 billion, and then EBITDA in the spread of DKK 1.62 to 1.72, has also increased by DKK 100 million. From that on, moving on to GPV, our second largest company in our portfolio. They have seen increased demand and also profitability. Revenue stable at DKK 2.2 billion. However, activity level developed an uplift 5% compared to Q1 2026. EBITDA increased 20% to DKK 187 million.

Speaker #1: We still see very strong underlying momentum. We have secured new contracts in Norway. There is a strong and continued focus on formulation optimization and the use of alternative raw materials to offset effects from El Niño.

Speaker #1: There are also positive expectations for volumes in the second half, and that means Biomar, already two days ago, raised their guidance. They now expect revenue between 17 and 18 billion, and EBITDA in the range of 1.62 to 1.72, also increased by 100 million.

Speaker #1: From that, moving on to GBV, our second largest company in our portfolio, they have seen increased demand and also profitability, with revenue stable at DKK 2.2 billion.

[Company Representative] (Schouw & Co): Revenue stable at DKK 2.2 billion. However, activity level developed an uplift 5% compared to Q1 2026. EBITDA increased 20% to DKK 187 million. Here, we also experienced continued productivity improvements. We see really positive impact now from all the footprint optimizations that GPV has been doing over the years. EBITDA margin increased to 8.3%, trailing towards our 10% target, so a good momentum. There is also a very strong visibility on future activities. We have a very high order intake and a strong book-to-bill. In fact, got very big orders from new customers coming in.

Speaker #1: However, activity level developed an uplift of 5% compared to Q1 26. EBITDA increased 20% to 187 million. Here we also experienced continued productivity improvements. We see really positive impact now from all the footprint optimizations that GBV has been doing over the years.

[Company Representative] (Schouw & Co): Here, we also experienced continued productivity improvements. We see really positive impact now from all the footprint optimizations that GPV has been doing over the years. EBITDA margin increased to 8.3%, trailing towards our 10% target, so a good momentum. There is also a very strong visibility on future activities. We have a very high order intake and a strong book-to-bill. In fact, got very big orders from new customers coming in. Our commercial pipeline is really supported by these new customers, but also by higher activities from existing customers in the GPV portfolio. There is still a concern on the supply chain, especially on selected components as memory chips and semiconductors, difficult supply situation on that. GPV has many years experience in handling such a situation, but we could expect that our inventory may increase slightly to secure customer deliveries. Also, GPV made a small uplift on their guidance.

Speaker #1: EBITDA margin increased to 8.3%, trailing towards our 10% target, so a good momentum. There's also very strong visibility on future activities. We have a very high order intake and a strong book-to-bill.

Speaker #1: In fact, we've received very large orders from new customers. Our commercial pipeline is not only supported by these new customers, but also by increased activity from existing customers in the GBV portfolio.

[Company Representative] (Schouw & Co): Our commercial pipeline is really supported by these new customers, but also by higher activities from existing customers in the GPV portfolio. There is still a concern on the supply chain, especially on selected components as memory chips and semiconductors, difficult supply situation on that. GPV has many years experience in handling such a situation, but we could expect that our inventory may increase slightly to secure customer deliveries. Also, GPV made a small uplift on their guidance.

Speaker #1: There's still a concern on the supply chain, especially on selected components such as memory chips and semiconductors. It's a difficult supply situation. GBV has many years of experience in handling such situations, but we could expect that our inventory may increase selectively to secure customer deliveries.

Speaker #1: Also, GBV made a small uplift on their guidance, revenue narrowed 8.6 to 9 billion, expected now, and EBITDA span also narrowed. We are lifting the bottom of the previous guidance, so expecting now EBITDA of 710 to 750 million.

[Company Representative] (Schouw & Co): Revenue narrows DKK 8.6 to 9 billion expected now, and EBITDA spend also narrowed. We are lifting the bottom of the previous guidance, so expecting now EBITDA of DKK 710 to 750 million. From GPV, moving on to HydraSpecma, where we really see a strong growth across all key divisions. HydraSpecma really continues the very solid development they have been delivering over the last years. Revenue increased 12% to DKK 925 million, and especially this increase is coming from the renewables and global OEM segments. EBITDA, however, increased 30% to DKK 125 million, really reflecting strong operational leverage from higher activity, but also effect from ongoing supply chain optimizations and automatization throughout the company. We see also continued production footprint improvements here. We have moved products around the different factories within the group. HydraSpecma continues to invest for further growth.

Speaker #1: From GBV, moving on to Hydrospecma, where we really see strong growth across all key divisions. Hydrospecma continues the very solid development they have been delivering over the last years.

Speaker #1: Revenue increased 12% to 925 million, and especially this increase is coming from the Renewables and Global OEM segments. EBITDA, however, increased 30% to 125 million, really reflecting strong operational leverage from higher activity, but also the effect from ongoing supply chain optimizations and automatization throughout the company.

Speaker #1: We also see continued improvements in our production footprint. We have moved products among the different factories within the group. Hydrospecma continues to invest for further growth.

Speaker #1: They just opened a new facility in China, in Shenzhen—a 20,000 square meter new factory. We really expect to benefit a lot from it in the future.

[Company Representative] (Schouw & Co): They just opened a new facility in China, in Shenzhen, a 20,000 square meter new factory we really expect to benefit a lot from in future. Also made a small acquisition in Norway to strengthen the position, a company called Hyco AS. Small company, but still just also underlining that we are looking a lot to expand our Nordic base. There is a very strong commercial momentum in HydraSpecma. We see a very solid order intake in renewables and global OEM also here. We experience growth opportunities within new segments. We are in marine, but defense and construction of data centers really knocking on the door and want to do business together with HydraSpecma. Guidance also here raised. Revenue now expected to be between DKK 3.4 billion to DKK 3.6 billion and EBITDA in the span of the level of DKK 430 million to DKK 460 million. Moving on to Borg Automotive.

Speaker #1: We also made a small acquisition in Norway to strengthen the position. The company is called Heiko—it's a small company, but it still underlines that we are looking a lot to expand our Nordic base.

Speaker #1: There's very strong commercial momentum in Hydro. We see solid order intake in renewables and global OEMs. Also here, we experience growth opportunities within new segments.

Speaker #1: We are in marine, but defense and construction of data centers are really knocking on the door and trying and want to do business together with Hydrospecma.

Speaker #1: Guidance also here raised. Revenue is now expected to be between 3.4 to 3.6 billion, and EBITDA in the range or at the level of 430 to 460 million.

[Company Representative] (Schouw & Co): Guidance also here raised. Revenue now expected to be between DKK 3.4 billion to DKK 3.6 billion and EBITDA in the span of the level of DKK 430 million to DKK 460 million. Moving on to Borg Automotive. Borg Automotive has, over the last year, had a difficult period, but now we see profitability improvements even in a soft market. However, revenue decreased as expected, 5% to DKK 461 million, and it was mainly within the Reman segment that demand remained soft and competition continued to be both intense and fierce. However, EBITDA increased to DKK 38 million for the quarter, and here we really now see strong benefits from what we call Refine for Future program. It is a strong action plan or game plan that Borg Automotive initiated a year ago.

Speaker #1: Then, moving on to Bo Automotive, Bo has over the last year had a difficult period, but now we see profitability improvement even in a soft market.

[Company Representative] (Schouw & Co): Borg Automotive has, over the last year, had a difficult period, but now we see profitability improvements even in a soft market. However, revenue decreased as expected, 5% to DKK 461 million, and it was mainly within the Reman segment that demand remained soft and competition continued to be both intense and fierce. However, EBITDA increased to DKK 38 million for the quarter, and here we really now see strong benefits from what we call Refine for Future program. It is a strong action plan or game plan that Borg Automotive initiated a year ago. We have seen very solid execution on very difficult projects. Productivity improvements and cost optimizations through Borg Automotive is really materializing now. The other segment we name New-to-Market segment, that is the new products imported into Europe now, coming out with a positive EBITDA, very positive.

Speaker #1: However, revenue decreased as expected by 5% to DKK 461 million, and it was mainly within the Reman segment that demand remained soft and competition continued to be both intense and fierce.

Speaker #1: However, EBITDA increased to 38 million for the quarter, and here we really now see strong benefits from what we call the Refined for Future program.

Speaker #1: And it's a strong action plan, or game plan, that Bo initiated a year ago. We have seen very solid execution on very difficult projects, productivity improvements, and cost optimizations throughout. Bo has really materializing now.

[Company Representative] (Schouw & Co): We have seen very solid execution on very difficult projects. Productivity improvements and cost optimizations through Borg Automotive is really materializing now. The other segment we name New-to-Market segment, that is the new products imported into Europe now, coming out with a positive EBITDA, very positive. We have done a lot on pricing and cost initiatives that supports that turnaround. The transformation within Borg Automotive is progressing, and as I mentioned earlier, we are really seeing very solid execution throughout the company and the organization.

Speaker #1: With the other segment we name the Newman segment, that's a new product imported into Europe with positive EBITDA—very positive. We have done a lot on pricing and cost initiatives that support that turnaround.

[Company Representative] (Schouw & Co): We have done a lot on pricing and cost initiatives that supports that turnaround. The transformation within Borg Automotive is progressing, and as I mentioned earlier, we are really seeing very solid execution throughout the company and the organization. Production has been relocated. It is completed. We closed down the entire UK facility. We have implemented a new commercial organization and a new go-to-market strategy. Working capital reduced by 26%, which is very positive. Guidance also here upgraded. However, revenue maintained in the spread of DKK 1.6 billion to DKK 1.9 billion, but EBITDA now raised to be between DKK 90 million and DKK 110 million. Moving on to Fibertex Personal Care. We really see a company with resilient performance in very volatile markets. Fibertex Personal Care really depend on one raw material, polypropylene, oil-based.

Speaker #1: The transformation within Bo is progressing, and as I mentioned earlier, we are really seeing very solid execution throughout the company and the organization. Production has been relocated—it's completed—and we have closed down the entire UK facility.

[Company Representative] (Schouw & Co): Production has been relocated. It is completed. We closed down the entire UK facility. We have implemented a new commercial organization and a new go-to-market strategy. Working capital reduced by 26%, which is very positive. Guidance also here upgraded. However, revenue maintained in the spread of DKK 1.6 billion to DKK 1.9 billion, but EBITDA now raised to be between DKK 90 million and DKK 110 million. Moving on to Fibertex Personal Care. We really see a company with resilient performance in very volatile markets. Fibertex Personal Care really depend on one raw material, polypropylene, oil-based.

Speaker #1: We have implemented a new commercial organization and a new go-to-market strategy, working capital reduced by 26%, which is very positive. Guidance also here upgraded however revenue maintained in the spread of 1.6 to 1.9 billion, but EBITDA now raised to be between 90 and 110 million.

Speaker #1: So, moving on to Fibertex Personal Care. We really see a company with resilient performance in very volatile markets. Fibertex Personal Care really depends on one raw material: polypropylene.

Speaker #1: Oil-based— a lot of that is supplied out of the Middle East, so that has been a tough period. But they have been able to pass on raw material price increases through the sales price.

[Company Representative] (Schouw & Co): A lot of that supplied out of the Middle East, so that has been a tough period, but they have been able to pass on raw material prices through the sales price. EBITDA in this difficult period increased 23% to DKK 59 million. Here we saw strong performance in our Malaysian set up and also continued positive momentum in our print division. I think it is also positive that Fibertex Personal Care improved their ability to manage volatility. They have implemented a faster and more frequent customer price adjustment model. They have a very strong focus on PP or polypropylene sourcing and availability, looking into new alternatives, and as usual, always continue the focus on margin protection. The commercial development continues, trying to offset the challenging overcapacity and market conditions in Asia by being innovative. Now introduced a new elasticated product line, which shows good interest in the market. Guidance also raised here.

Speaker #1: EBITDA in this difficult period increased 23% to €59 million. Here, we saw strong performance in our Malaysian setup and also continued positive momentum in our print division.

Speaker #1: I think it's also positive that Fibertex Personal improved their ability to manage volatility. They have implemented a faster and more frequent customer price adjustment model.

Speaker #1: They have very strong focus on PP or polypropylene sourcing and availability, looking into new alternatives. And as usual, always focus on margin protection. Their commercial development continues.

[Company Representative] (Schouw & Co): The commercial development continues, trying to offset the challenging overcapacity and market conditions in Asia by being innovative. Now introduced a new elasticated product line, which shows good interest in the market. Guidance also raised here. Revenue now DKK 1.7 to DKK 1.9 billion, and EBITDA expected to be DKK 160 to DKK 180 million. Moving on to the last company, not the least, but the last company in our portfolio, Fibertex Nonwovens. Here we saw a very positive, solid momentum with growth and profitability uplift. Finally, we are really harvesting on all the investments we have made over the years. Revenue here increased 20% to DKK 700 million.

Speaker #1: Trying to offset challenging overcapacity and market conditions in Asia by being innovative. Now introduced a new elasticated product line which shows good interest in the market.

Speaker #1: Guidance also raised here revenue now 1.7 to 1.9 billion and EBITDA expected to be 160 to 180 million. Then moving on to the last company not the least but the last company in our portfolio, Fibertex on Roads here we saw a very positive solid momentum with growth and profitability uplift finally we are really harvesting on all the investments we have been we have made over the years.

[Company Representative] (Schouw & Co): Revenue now DKK 1.7 to DKK 1.9 billion, and EBITDA expected to be DKK 160 to DKK 180 million. Moving on to the last company, not the least, but the last company in our portfolio, Fibertex Nonwovens. Here we saw a very positive, solid momentum with growth and profitability uplift. Finally, we are really harvesting on all the investments we have made over the years. Revenue here increased 20% to DKK 700 million. Sales volume increased 12% in difficult market conditions. EBITDA increased 47% to DKK 84 million, and here we really saw continued improvement in the US business, which had been struggling over some years but now really starts to deliver as expected. We saw positive contribution across all major sites and segments. There is also a very broad-based commercial momentum within Fibertex Nonwovens. We see good growth in the US wipes and hygiene segment.

Speaker #1: Revenue here increased 20% to 700 million. Sales volume increased 12% in difficult market conditions. EBITDA increased 47% to 84 million. Here, we really saw continued improvement in the US business, which has been struggling over some years, but now really starts to deliver as expected.

[Company Representative] (Schouw & Co): Sales volume increased 12% in difficult market conditions. EBITDA increased 47% to DKK 84 million, and here we really saw continued improvement in the US business, which had been struggling over some years but now really starts to deliver as expected. We saw positive contribution across all major sites and segments. There is also a very broad-based commercial momentum within Fibertex Nonwovens. We see good growth in the US wipes and hygiene segment.

Speaker #1: We saw positive contributions across all major sites and segments. There's also very broad-based commercial momentum within Fibertex on Roads. We see good growth in the US wipes and hygiene segment.

Speaker #1: We are recovering in Europe in the automotive and construction segments, and we are experiencing strong demand for our lightweight and specialized products. Here, we really see that FIN has an advantage in the market because we are solid and strong in producing these specialized products.

[Company Representative] (Schouw & Co): We are recovering in Europe on the automotive and construction segments, and we experience strong demand for our lightweight and specialized products. Here we really see that FIM has a benefit in the market because we are solid and strong in producing these specialized products. We are also looking into capacity supporting future growth. We have had a new line in the Chitwood property on the way for quite a long time, and it is now finalizing the installation. Startup expected ultimo this year. Guidance also with the Fibertex Nonwovens raised. Revenue in the spread of DKK 2.5 to DKK 2.7 billion for the year, and EBITDA now expected to be between DKK 230 and DKK 260 million. Just concluding on Schouw & Co.'s outlook for 2026. As mentioned, overall guidance for the group, revenue raised to DKK 34.8 to DKK 37.1. EBITDA now expected to be DKK 3.15 to DKK 3.35.

Speaker #1: We are also looking into capacity to support future growth. We have had a new line in the Czech Republic underway for quite a long time, and it's now finalizing the installation, with startup expected at the end of this year.

Speaker #1: Guidance, also with Fibertex on Roads, raised revenue in the spread of DKK 2.5 to 2.7 billion for the year, and EBITDA is now expected to be between DKK 230 and 260 million.

Speaker #1: So just concluding on Schouw & Co's outlook for 2026. As mentioned overall guidance for the group revenue raised to 34.8 to 37.1. EBITDA now expected to be 3.15 to 3.35.

[Company Representative] (Schouw & Co): As mentioned, overall guidance for the group, revenue raised to DKK 34.8 to DKK 37.1. EBITDA now expected to be DKK 3.15 to DKK 3.35. As development and expectations that we are very positive on. Guidance uplift supported by very strong market positions, also a solid order booking, nearly all companies and a continued operational efficiency across our portfolio companies expected. We will also, as I mentioned, we have acquired a new company, Spectre. It is expected to be closed in ultimo Q3, start Q4. Spectre is expected to add DKK 300 to DKK 400 million of revenue in 2026, but no material EBITDA contribution after acquisition related effects. With that uplift in mind, then I will open up for questions.

Speaker #1: It's a development and expectations that we are very positive on. Guidance uplift supported by very strong market positions, also a solid order book in nearly all companies, and continued operational efficiency across our portfolio companies expected.

[Company Representative] (Schouw & Co): As development and expectations that we are very positive on. Guidance uplift supported by very strong market positions, also a solid order booking, nearly all companies and a continued operational efficiency across our portfolio companies expected. We will also, as I mentioned, we have acquired a new company, Spectre. It is expected to be closed in ultimo Q3, start Q4. Spectre is expected to add DKK 300 to DKK 400 million of revenue in 2026, but no material EBITDA contribution after acquisition related effects. With that uplift in mind, then I will open up for questions.

Speaker #1: We will also, as I mentioned, we have acquired a new company, Spectra. It's expected to be closed in late Q3 or early Q4. Spectra is expected to add 300 to 400 million of revenue in 2026, but no material EBITDA contribution after acquisition-related effects.

Speaker #1: So, with that uplift in mind, I will open up for questions. Wade from HDB, welcome.

[Analyst] (SEB): Wei from SEB.

Wei Zhou: Wei from SEB.

[Company Representative] (Schouw & Co): Wei from SEB, welcome.

Speaker #3: Thank you for taking my question. I have a couple of questions from my side, and I do want a time check. Firstly, on the GPV, can you break down the strong momentum here and how much of it is driven by volume and how much by pricing?

[Analyst] (SEB): Thank you for taking my question. A couple of questions from my side, and I will do one at a time. Firstly, on the GPV, can you break down the strong momentum here? How much of it is driven by volume and how much is it driven by the pricing?

Wei Zhou: Thank you for taking my question. A couple of questions from my side, and I will do one at a time. Firstly, on the GPV, can you break down the strong momentum here? How much of it is driven by volume and how much is it driven by the pricing?

Speaker #1: Thank you very much. Not so much is driven by volume, so we were 5% up compared to Q1, but in general, a little bit flat. Pricing, of course, helped a little bit, but mainly—and I would say 80%—it was driven by efficiency, by our footprint decisions made.

[Company Representative] (Schouw & Co): Thank you very much. Not so much is driven by volume. You said we were 5% up compared to Q1, but in general, a little bit flat. Pricing, of course, a little bit, but mainly, and I would say, 80% driven by efficiency, by our footprint decisions made. So it is really an uplift on the operational efficiency and better utilization of capacity and factories and so on. As you know, all the way we have been investing over the years, and we really see strong benefit from that now.

Speaker #1: So it is really an uplift on operational efficiency and better utilization of capacity and factories, and, as you know, also where we have been investing over the years, and we really see strong benefit from that now.

Speaker #3: Okay. And then the large order you mentioned from a customer—can you indicate which sector it is from, if possible?

[Analyst] (SEB): Okay. The large order you mentioned from a customer, in which sector it is, if you can indicate?

Wei Zhou: Okay. The large order you mentioned from a customer, in which sector it is, if you can indicate?

Speaker #1: Yeah, I can indicate it's for the data center segment, and we have really been working hard on getting our feed into that segment. It's something we have really focused on throughout the entire group.

[Company Representative] (Schouw & Co): Yeah, I can indicate. It's for the data center segment, and we have really been working hard on getting our feet into that segment and something we really have focused, strong focus on, throughout the entire group. That was the first really strong order we got, and we expect to see more from that side. Yeah.

Speaker #1: So, but that was the first really, really strong order we got there, and we expect to see more from that side. Yeah.

Speaker #3: Okay, that sounds great. And then the second question here on the Spectra acquisition: you only own—I mean, bought—a part of it, a large part of it.

[Analyst] (SEB): Okay. That sounds great. The second question here, on the Spectre acquisition.

Wei Zhou: Okay. That sounds great. The second question here, on the Spectre acquisition.

[Company Representative] (Schouw & Co): Yeah.

[Analyst] (SEB): You only owned, I mean, bought a part of it, a large part of it. Why not 100% take over?

Wei Zhou: You only owned, I mean, bought a part of it, a large part of it. Why not 100% take over?

Speaker #3: Why not 100% take over?

[Company Representative] (Schouw & Co): Well, a super good question. Because the owners, the previous owners, they have a strong belief in the development of the company, and they would like to sit in for some years more to take part in that. That's why we got the opportunity to buy 75%, and then we did it because, of course, we had an opportunity to buy them out after some years. I think it's very positive that they stay in because they believe strongly in the business case and the model. So that's why.

Speaker #1: question. Well because the owners the previous owners they they have a strong belief in in the development and and of the company and they would like to sit in for some years more to take part in that and that's why we got the opportunity to buy 75% and then we did it because of course we have a we had an opportunity to buy them out after some years but I think it's very positive that they stay in because they believe strongly in the business case and and and the model.

Speaker #1: So that's why.

Speaker #3: Okay. Is it possible to indicate that it is currently trading? And we have seen a lot of, I mean, market volatility and consumer sentiment changes amid the current American economics?

[Analyst] (SEB): Okay. Is it possible to indicate then, is current trading, we have seen a lot of market volatility and consumer sentiment change amid the current macroeconomics?

Wei Zhou: Okay. Is it possible to indicate then, is current trading, we have seen a lot of market volatility and consumer sentiment change amid the current macroeconomics?

Speaker #1: I think, to be fair, we have not closed the business yet, so we'll come back on that a little bit later. But I can say that, as you also saw when we made the announcement, we expect a €1 billion turnover and EBITDA between 15% to 17%.

[Company Representative] (Schouw & Co): I think to be fair, we have not closed the business yet, so we will come back on that a little bit later. I can say that as you also saw when we have made the announcement, expect a DKK 1 billion turnover and EBITDA between 15% to 17%. I still think good momentum in that business because they are supplying high branded global companies that have good momentum. We will come back on that a little bit later, maybe.

Speaker #1: And I still think there is good momentum in that business because they are supplying high-branded global companies that have good momentum. But we will come back to that a little bit later.

Speaker #3: Okay. But it is also up against some of the giant international peers and and and if you look into the market the end market I mean you have seen the we have seen the the the Chinese a very large sporty companies they are buying western brands and is it sort of you know this kind of industry consolidation and is it opportunity or threat I mean how do you view it?

[Analyst] (SEB): Okay. But it is also up against some of the giant international peers. If you are looking into the market, the end market, we have seen the Chinese, very large sporty companies, they are buying Western brands. Is it sort of this kind of industry consolidation, and is it opportunity or threat? How do you view it?

Wei Zhou: Okay. But it is also up against some of the giant international peers. If you are looking into the market, the end market, we have seen the Chinese, very large sporty companies, they are buying Western brands. Is it sort of this kind of industry consolidation, and is it opportunity or threat? How do you view it?

Speaker #1: I really see it as an opportunity and you have to see also remember that we are we are a supplier we we don't design or have our own brands or so we are really working with the largest branded companies globally and I really see that as an opportunity because we are super efficient and one of the best companies in really making very advanced high level outdoor garments.

[Company Representative] (Schouw & Co): I really see it as an opportunity. You have to see also, and remember that we are a supplier. We do not design or have our own brands or so on. We are really working with the largest branded companies globally. I really see that as an opportunity because we are super efficient and one of the best companies in really making very advanced, high-level outdoor garments. So I see it as a good opportunity to benefit on that. Yeah.

Speaker #1: So I see it as a good opportunity to benefit from that. Yeah.

Speaker #3: Okay, and then next question here comes to the capital location. Now, you have received a large amount of cash, and you bought part of this Spectra, and then also slightly increased year by back.

[Analyst] (SEB): Okay. Then, next question here. One comes to the capital allocation. Now you have received a large amount of cash.

Wei Zhou: Okay. Then, next question here. One comes to the capital allocation. Now you have received a large amount of cash.

[Company Representative] (Schouw & Co): Yeah

[Analyst] (SEB): You bought a part of this Spectre, then also slightly increased your buyback.

Wei Zhou: You bought a part of this Spectre, then also slightly increased your buyback.

Speaker #3: But going forward, how do you balance the capital allocation? Is it more opportune M&As, or should we expect an increased shareholder payout? And how do you balance these two?

[Company Representative] (Schouw & Co): Yeah

[Analyst] (SEB): Going forward,

Wei Zhou: Going forward, how do you balance the capital allocation? Is it more M&As or should we expect an increased shareholder payout? How do you balance these two?

[Company Representative] (Schouw & Co): Yeah

[Analyst] (SEB): how do you balance the capital allocation? Is it more M&As or should we expect an increased shareholder payout? How do you balance these two?

Speaker #1: Yeah, I think it would be a combination, to be honest, and we are looking into interesting opportunities also, especially on the BOEL onsite.

[Company Representative] (Schouw & Co): Yeah, I think it will be a combination, to be honest. We are looking into interesting opportunities also, especially on the bolt-on side. I think we really like to grow all our portfolio companies, as we are always saying, bigger and stronger companies within Schouw & Co. So we are looking to a lot of interesting bolt acquisition, but also timing and things like that. Then we also very prudent on pricing and things like that. So you will see a combination, and we have to work diligently on how to allocate our capital.

Speaker #1: I think we really like to grow all our portfolio companies as well. We always say, bigger and stronger companies within scope. So, we are looking at a lot of interesting, bold acquisitions, but you know, also timing and things like that.

Speaker #1: And then we are also very, very prudent on pricing and things like that. So you will see a combination, and we have to work diligently on how to allocate our capital.

Speaker #3: Okay, then I'll ask a last question and then I'll jump back to the queue. When looking at Fibertex Personal Care, you have a sort of margin improvement here, but then the operating cash flow was actually quite inactive here.

[Analyst] (SEB): Okay. Then I ask last question, I will jump back to the queue.

Wei Zhou: Okay. Then I ask last question, I will jump back to the queue.

[Company Representative] (Schouw & Co): Sure.

[Analyst] (SEB): When looking to Fibertex Personal Care, you have a margin improvement here. But the operating cash flow was quite negative here. Can you elaborate a bit?

Wei Zhou: When looking to Fibertex Personal Care, you have a margin improvement here. But the operating cash flow was quite negative here. Can you elaborate a bit?

Speaker #3: Can you elaborate a bit?

Speaker #1: Yeah, we don't have any huge investments coming, so we expect cash flow to be strong, as it always has been, throughout 2026. So, I think that we don't see any changes in that.

[Company Representative] (Schouw & Co): Yeah. We do not have any huge investments coming, so we expect cash flow to be strong as it always has been, throughout 2026. So I think that we do not see any changes in that.

Speaker #3: But if I understand correctly, it was driven by increased working capital. And what is the explanation?

[Analyst] (SEB): But if I understand correctly, it was driven by increased working capital.

Wei Zhou: But if I understand correctly, it was driven by increased working capital. What is the explanation?

[Company Representative] (Schouw & Co): Yeah

[Analyst] (SEB): What is the explanation?

Speaker #1: But with the workings, it could be on a body. As you know, we don't have inventories and things for a very long time in Fibertest personal care.

[Company Representative] (Schouw & Co): Well, it could be on a volume base. As you know, we don't have inventories and things for a very long time in Fibertex Personal Care, maybe only 20, 30 days. So I can't say 100% what has been driving it. But we are not building inventory. We are not investing. So we will continue to deliver strong cash flow. I think it's a timing issue you are seeing there.

Speaker #1: Maybe only 20–30 days. So I'm not—I can't say 100% what has been running, but we are not building inventory. We are not investing.

Speaker #1: So we will we will continue to deliver strong cash flow. I think it's a timing issue you are you are seeing that.

Speaker #3: Okay. Okay. Thanks. I jump.

[Analyst] (SEB): Okay. Thanks. I'll jump back to the queue.

Wei Zhou: Okay. Thanks. I'll jump back to the queue.

Speaker #1: Thanks. Thank you for the questions.

[Company Representative] (Schouw & Co): Thanks. Thank you for the questions, Ray. We don't have any more questions on the line, so Wei, if you have more? Wei, if you have a question more, you're welcome. Otherwise, we, yeah.

Speaker #2: We don't have any more questions on the line. So, if you have more, Way.

Speaker #1: If you have any more questions, you're welcome to ask. Otherwise, we can wrap up.

Speaker #3: I I'm good. Thanks.

[Analyst] (SEB): I'm good. Thanks.

Wei Zhou: I'm good. Thanks.

Speaker #1: Good. Okay. No thank you very much for for the question. Thank you for the interest. So yeah wish everyone a good Friday. Thank you for listening in.

[Company Representative] (Schouw & Co): No, thank you very much for the question. Thank you for the interest. So yeah, wish everyone a good Friday. Thank you for listening in.

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Q2 2026 Aktieselskabet Schouw & Co AS Earnings Call

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