CEO Review

Kalmar’s sales growth was strong in the second quarter of 2026. Despite continued trade tensions and geopolitical uncertainty we maintained a steady performance across both segments and in the different regions.

Orders received in the quarter were essentially in line with the comparison period at EUR 449 million, a resilient result given that the prior year included several sizeable orders in EMEA. We saw encouraging momentum in the Americas, where order intake grew significantly compared to a year ago, now representing 39 percent of total orders. This reflects the continued gradual recovery in the second quarter in the distribution end-market in North America.

Overall, customer demand has been remarkably resilient in these times, remaining relatively stable across different customer segments.

The order book stood at EUR 986 million at the end of the quarter providing a solid foundation going into the second half.

Sales in the second quarter grew by 14 percent to EUR 480 million. Both the Equipment and Services segments contributed to this growth. Profitability held up well in absolute terms, with comparable operating profit increasing by 9 percent to EUR 60 million, representing a margin of 12.4 percent. The improvement was driven mainly by higher volumes. While tariffs continued to weigh modestly on margins, we were largely able to mitigate their impact through active pricing management and the efficiency gains embedded through our Driving Excellence programme. We continue to focus on actions related to margin improvement.

The transformation of our portfolio towards more sustainable solutions continued to accelerate. Eco portfolio sales in the second quarter reached EUR 233 million, up 27 percent year on year, and now represent 48 percent of our consolidated sales. During the quarter, we secured a number of notable fully electric equipment orders. This shows that our investment in electrification is resonating with customers across geographies and segments.

On the innovation front, we launched the fully electric TT7 EV terminal tractor for the European market during the quarter, and we also celebrated the first anniversary of our Move2Green programme, our strategic five-year R&D initiative focused on electrification, data-enabled services and circularity, co-funded by Business Finland.

Our Driving Excellence initiative continued to deliver. By the end of the second quarter, we had secured a run rate of approximately EUR 49 million in annualised gross efficiency improvements — near the EUR 50 million target we have set for year-end 2026. Cash generation was notably strong. Cash flow from operations before finance items and taxes was EUR 82 million in the second quarter alone. Return on capital employed on a last-twelve-months basis improved to 24.1 percent and our balance sheet is in excellent shape.

Looking at our two segments, Equipment delivered second-quarter sales of EUR 321 million and a comparable operating profit margin of 12.4 percent. The comparable operating profit improvement in the quarter reflects higher volumes and successful mitigation of tariff impacts, even if the margin remained somewhat below prior levels due to product mix and some cost headwinds.

The Services segment showed an encouraging early recovery in the second quarter with sales of EUR 158 million and a comparable operating profit margin of 17.0 percent, an improvement over both Q1 2026 and Q2 2025. Services orders in the quarter reflected some timing differences versus the comparison period, which included a few large projects. We remain focused on growing services, improving spare part capture rates, and building recurring revenue — all of which are key levers for reaching our long-term targets.

Looking ahead, we continue to carefully monitor global trade and geopolitical uncertainty. Despite this volatility, our fundamentals remain strong, backed by a solid order book, a growing eco portfolio, long-standing customer relationships, and a resilient team. We expect total market demand for the next six months to remain approximately at a similar level as in the previous quarters. We confirm our guidance for 2026 unchanged: we expect our comparable operating profit margin to be above 12.5 percent for the full year.

I would also like to welcome Tamara de Gruyter, who will join Kalmar as President of Services in September. I look forward to the energy and experience she will bring as we continue to grow this essential part of our business.

Finally, I want to thank our employees around the world. Your dedication is what makes Kalmar's performance possible.

Kalmar, half-year financial report January–June 2026, 22 July 2026