Interim report Q1, 2026: Strong growth in Consumables and Technologies

The company reported first-quarter sales of SEK 807 million, down 4% in SEK but up 5% in local currencies, with growth led by the Americas (+11%) and APAC (+7%). Gross margin improved to 59.9% from 57.4%, while EBITDA was SEK 251 million versus SEK 257 million a year ago, leaving the EBITDA margin at 31.1%. Net income was essentially flat at SEK 101 million versus SEK 100 million.

Analysis

The mix is healthier than the headline suggests: margin expansion with only flat-to-slightly down reported sales implies the business is getting better at monetizing mix and cost base, not just riding volume. The standout is the Americas and the faster-growing product lines, which usually carry a better quality of revenue than broad-based price-led growth; that tends to filter through to incremental gross margin before it shows up in absolute profit growth. If this pattern holds for another 1-2 quarters, the market should start underwriting a structurally higher earnings power rather than treating this as a one-off beat.

The key second-order effect is competitive: stronger gross margin gives management more room to defend share on consumables while still funding technology adoption and commercial execution. That can pressure smaller peers and distributors that rely on discounting to win placements, especially if the company uses the margin cushion to bundle consumables with installed-base expansions. In healthcare tools and biotech-adjacent equipment, that often creates a flywheel where installed base growth today becomes recurring consumables pull-through 6-12 months later.

The main risk is that the current margin level may be cyclical rather than structural if the regional mix normalizes or if EMEA weakness broadens into a broader demand slowdown. Near term, the market will likely reward the print on the next 1-4 weeks, but the durability question sits over the next 2-3 quarters: if technology orders decelerate or consumables growth fades, the multiple expansion case stalls quickly. The contrarian read is that consensus may be too focused on the slight revenue improvement and not enough on the quality of growth; if the company can keep gross margin near 60%, the earnings base is more resilient than a flat top line suggests.

Key Decisions for Investors

• If liquid/accessible, buy the name on any post-print pullback over the next 3-5 trading days; the setup supports a 6-12% rerating if margin durability is confirmed in the next quarter.
• Pair trade idea: long this company vs short a lower-margin healthcare equipment peer with weaker consumables mix; the spread should favor the higher-gross-margin model over the next 1-2 quarters if pricing holds.
• For event-driven accounts, consider a 1-2 month call spread if implied volatility is still subdued after the release; upside is driven by margin persistence, while downside is capped if sales normalize.
• Set a risk trigger to reduce exposure if next-quarter EMEA sales remain negative and gross margin slips below the high-58% area; that would signal the current profitability is not repeatable.