KH Group Q2'26 flash comment: Swedish turnaround led to a clear earnings beat
Summary
- KH Group's Q2 earnings surpassed expectations, driven by a turnaround in KH-Koneet's Swedish operations and improved profitability, enhancing the credibility of the current year's guidance.
- Revenue growth was stronger than anticipated, with KH-Koneet's revenue increasing by over 12% and Nordic Rescue Group's (NRG) revenue jumping by over 25% year on year.
- The earnings beat was attributed to higher-than-expected profitability from both subsidiaries, with KH-Koneet's Swedish EBIT rising to 0.9 MEUR and NRG benefiting from a favorable sales structure.
- KH Group reiterated its guidance for revenue and comparable EBIT growth, supported by NRG's strong order book and planned efficiency measures expected to reduce costs by 1 MEUR in 2027.
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Translation: Original published in Finnish on 08/14/2026 at 09:29 am EEST
| Estimates | Q2'25 | Q2'26 | Q2'26e | Q2'26e | Difference (%) | 2026e | |
|---|---|---|---|---|---|---|---|
| MEUR / EUR | Comparison | Actualized | Inderes | Consensus | Act. vs. Inderes | Inderes | |
| Revenue | 54.2 | 62.3 | 59.0 | 6 % | 219 | ||
| EBIT (adj.) | 0.8 | 4.3 | 2.4 | 77 % | 8.6 | ||
| EBIT | 0.5 | 4.1 | 2.1 | 92 % | 7.4 | ||
| PTP | -0.9 | 2.7 | 0.9 | 203 % | 1,8 | ||
| EPS (adj.) | -0,01 | 0,04 | 0,01 | 172 % | 0.03 | ||
| EPS (rep.) | -0.01 | 0.03 | 0.01 | 268 % | 0.01 | ||
| Revenue growth-% | 3.9 % | 14.9 % | 8.8 % | 6.1 pp | 7.0 % | ||
| EBIT-% (adj.) | 1.4 % | 6.9 % | 4.1 % | 2.8 pp | 3.9 % |
Source: Inderes
KH Group's Q2 earnings exceeded our expectations in terms of both revenue growth and especially profitability. The positive surprises in the report were KH-Koneet's turnaround in its Swedish business and a broad-based improvement in relative profitability. With the profitability turnaround of KH-Koneet's Swedish business and NRG's record-high order backlog, we believe the company's outlook appears favorable. Following the strong Q2 report, the credibility of the current year's guidance significantly improved. Instead of a single quarter, we believe KH Group's year-to-date performance should be viewed as a whole. KH-Koneet suffered from delayed machine deliveries in Q1, and NRG's deliveries were postponed to Q2, which boosted the second quarter at the expense of the first. Despite this, we see upward pressure in our estimates with the report.
Subsidiaries drove revenue growth
KH Group's revenue growth accelerated more strongly than we expected in the second quarter, thanks to the good performance of both subsidiaries. KH-Koneet's revenue grew by just over 12% from the comparison period, particularly supported by the recovery in sales of its Swedish operations. Nordic Rescue Group's (NRG) revenue, in turn, jumped by over a quarter year on year. NRG's growth in Finland was driven by strong operational equipment sales and the realization of deliveries concentrated in the early part of the year, although aftermarket revenue remained slightly below the comparison period.
The earnings turnaround in Sweden and recovered margins accelerated the profitability improvement
The revenue growth and improved relative profitability of KH Group's subsidiaries were effectively reflected in the earnings, and the company's comparable EBIT clearly exceeded both our estimate and the comparison period's level. The earnings beat was due to stronger-than-expected profitability from both subsidiaries. KKH-Koneet's Swedish EBIT rose to 0.9 MEUR (Q2’25: -0.4 MEUR), while Finland’s EBIT increased to 2.3 MEUR (Q2'25: 1.3 MEUR), supported by increased revenue and an improved margin profile. Despite the growth, KH-Koneet's fixed costs remained at the comparison period's level. NRG's profitability was supported not only by revenue growth but also by a change in the sales structure in Sweden, as the share of lower-margin platform sales in total sales decreased. We estimate that NRG enjoyed a more favorable sales structure than usual in Q2, as sales of operational equipment installed in vehicles increased significantly in Finland. In addition to the strong performance of the subsidiaries, the company's earnings were further boosted by a significant contraction in parent company expenses.
Guidance was reiterated, with efficiency measures supporting the rest of the year
KH Group reiterated its guidance for this year, according to which the company estimates that both revenue and comparable EBIT will grow from 2025. Thanks to a strong second quarter, the pressure on the full-year performance has eased and the risk related to the guidance has decreased. The outlook is also supported by NRG's strong order book, which extends well into 2029. In addition, management announced decisions to move the head office to Klaukkala, Nurmijärvi, and to harmonize the Group's administrative functions. These efficiency measures are estimated to lighten the cost structure in 2027 by around 1 MEUR compared to the current year. The strong overall picture of the report and the new cost-saving measures support the company's earnings growth outlook for the coming years.