Good morning, and welcome to this presentation of Sweco's Q1 report. With me this morning, I have Sweco's President and CEO, Åsa Bergman, and CFO, Jan Allde.

After their presentation, they will take your questions, and we will give you the instruction at that point. Over to you, Åsa.

Welcome everyone to Sweco's Q1 presentation. Before we present the result for the first quarter, let me give you a quick overview of Sweco.

Sweco is Europe's leading architecture and engineering consultancy with operations in eight geographical business areas across some 15 markets in Europe. We are a well-diversified business operating across three different segments with a good balance of private and public clients.

The foundation for Sweco's long-term success is our mix of competencies spread across 23,000 experts. Our focus on organic and acquired growth, as well as our efficient and decentralized operational model.

With a strong financial track record and financial position, we are focused on continuing our growth journey and build on Sweco's success. With this introduction, let me start the presentation with a summary of the first quarter of 2026.

In Q1, Sweco delivered a stable result in a mixed market, characterized by positive organic growth, increasing fees and billing ratio, and continuing acquisition activity. Net sales increased 3% to 8.3 billion SEK, and the organic growth rate was 3%.

EBITA amounted to 869 million SEK, corresponding to a margin of 10.4%. EBITA increased by 5%, adjusted for calendar effects.

Higher average fees, a higher billing ratio, and contribution from acquisitions had a positive effect on the result in the quarter, while restructuring and integration costs as well as higher personnel expenses had a negative impact. Our acquisition activity continued with three acquisitions in this quarter.

Now, let us go into more details. Overall, most business areas delivered a stable first quarter.

Five out of eight business areas delivered positive organic growth, and five out of eight also improved EBITA in the quarter. We continue to navigate the market well and increased our order backlog.

We also maintained a strong focus on internal efficiency, as reflected in the billing ratio compared to last year. I would also like to highlight the positive performance in Sweden that delivered solid organic growth and a positive EBITA improvement, supported by synergies from the recent acquisition of Projektengagemang.

However, the result was negatively impacted by project adjustments and restructuring and integration costs taken in Sweco Finland. We are pleased to see that most business areas performed well in this quarter.

Let us now turn to the market overview. Demand for Sweco's services was broadly consistent with previous quarters.

Demand remained good in energy, water, environment, infrastructure, as well as security and defense. Residential and commercial buildings and part of the industry segment remained weak.

The uncertainty in the broad macro and geopolitical environment increased, but our decentralized operating model and well-diversified business model with a clear European focus provided resilience in the quarter. As capital and policy attention increasingly shift towards Europe's competitiveness and resilience, this focus is becoming even more relevant for Sweco.

With that, I welcome our CFO, Jan Allde, to walk you through the numbers. Please, Jan.

Thank you, Åsa. Net sales came in at 8.3 billion SEK, with an organic growth rate of 3%, acquired growth of 5%, and a negative FX impact of 3%, giving a total net sales growth of 3% in the quarter.

The calendar effect was five less working hours in Q1 versus last year. EBITA increased 5% or 43 million SEK, adjusted for the calendar effect.

EBITA margin came in at 10.4%, and the net debt to EBITA ratio of 0.5 times at the end of March, same as last year. Looking at net sales, the organic growth of 3% in Q1 was primarily driven by higher average fees and a higher billing ratio.

From a BA perspective, we saw organic growth in five out of eight BAs. Germany and Central Europe had the strongest organic growth rate at 9%, driven by higher average fees and FTE growth, in an overall stable market.

Growth in Finland was flat in the quarter, as the Finnish market remains challenging, and Denmark reported a negative growth rate of 2%, due to a stable, but somewhat weaker demand situation within the industry and energy market segments. The other BAs reported organic growth rates between 3% and 5%.

Looking at EBITA, which increased 43 million or 5% versus last year, adjusted for calendar effects. Overall, the EBITA improvement was driven by higher average fees, improved billing ratio, and contributions from the acquisitions made in 2025, but while higher personnel expenses had a negative impact.

The reported EBITA margin was 10.4% in Q1 versus 11.2% last year. Adjusting for calendar effects with negative impact in Sweden and Norway, the EBITA margin was on par with last year.

From a BA perspective, we saw a strong performance in Sweden in Q1, with a margin significantly above last year, adjusting for the calendar effects. Norway also reported slightly higher margin than last year, adjusting again for the calendar effect.

The EBITA margin in Finland was impacted by negative project adjustment as well as restructuring and integration costs. The margins in the other BAs were roughly in line with last year.

Important to note, though, is that Belgium and Denmark continue to deliver very strong margins. Now let's look at the EBITA bridge by BA.

The result in Sweden was 68 million SEK or 26% higher than last year, driven by higher billing ratio, higher average fees, and a positive contribution from the Projektengagemang acquisition last year, despite having 30 million SEK of integration and restructuring costs in Q1. The result in Finland was 28 million SEK lower than last year and was impacted by negative project adjustment as well as integration and restructuring costs of 17 million SEK following personnel reductions in the quarter.

The integration of both Projektengagemang and Fimpec is progressing well, and we expect synergies to materialize gradually during 2026. Norway, Netherlands, Belgium, and the UK delivered EBITA improvements, while the result in Denmark and Germany and Central Europe were slightly lower.

The calendar effect was five less working hours in Q1 versus last year, corresponding to a negative year-on-year impact of 75 million SEK, affecting the results in Sweden and Norway. Now look at the financial position of the company.

Cash flow in Q1 was negatively impacted by a seasonal increase in working capital, resulting in a net debt position at 1.9 billion SEK at the end of March, slightly higher than last year. M&A cash outflow was 46 million, and this means that the net debt EBITA ratio at the end of March was 0.5 times, same as last year.

Hence, our leverage is well below our target, and we remain financially very strong to pursue an active M&A agenda. Finally, a reminder of the calendar effects for '26.

The expected total number of working hours for '26 is expected to be seven hours more than in '25, and in Q2, we expect five hours more than the same quarter last year. By that, I hand back to you, Åsa.

Thank you. Acquisitions remained one of Sweco's key growth drivers, and we started 2026 with three new acquisitions.

In January, we acquired the Finnish architecture firm Näkymä with 20 experts specializing in the design of historical and cultural sites. Later in the quarter, we announced the acquisition of Belgian firm CONIX RDBM Architects, a well-known and award-winning practice with 50 experts that will further strengthen Sweco's position in large-scale urban development projects.

We also acquired the Belgian architecture firm A-Architecten with 10 experts specializing in sustainable architecture. At the same time, we continue to integrate the 13 acquisitions completed in 2025, which are now step by step being added to our offering across several business areas.

Our M&A agenda remains active and disciplined, and we continue to evaluate opportunities across our core markets. Projects won during the quarter highlight Sweco's role in Europe's transition to a more resilient and sustainable society.

In Norway, Sweco was appointed lead consultant by Å Energi to support the development of the Åseral South hydropower project, strengthening renewable power generation through cross-border collaboration and digital delivery. Sweco also won contracts to support public transport across transport operators across Europe in developing the infrastructure required for electrification.

This includes next-generation electrical bus depots in Belgium, enabling low-emission public transport and future-ready mobility systems. In the UK, Sweco was awarded a major office development project in the City of London, the Dovetail building, where we deliver technical and sustainability services, including life-cycle carbon analysis.

In addition, Sweco leads a major system restoration project in Belgium. The project restores natural hydrology, raising groundwater, improving water quality, and rebalancing flood dynamics.

To summarize, Sweco delivered a stable first quarter in a mixed market, and we have set clear priorities going forward. First, we will continue to be responsive to market developments.

Operating in a mixed market with increasing geopolitical uncertainty makes it essential to remain active and agile. Sweco's decentralized operating model helps us stay close to the market and enables both proactivity in sales and the ability to quickly respond to changing market conditions.

Second, we will remain our focus on internal efficiency and further margin improvements, building on the progress we have made over the past quarters. Third, we will continue developing our AI capabilities, strengthening both our offering and our internal efficiency.

Finally, we will continue the integration of acquisitions and maintain an active and disciplined M&A agenda. With our strong market position, diversified portfolio, and solid financial position, Sweco is well positioned to continue to navigate the market.

Thank you.

Thank you, Åsa and Jan, and now is the time to open up for questions, please operator, if you could give us the details.

Yes.

Yes, good morning Åsa and Jan. A couple of questions from my side.

Good morning, Dan.

Good morning. Maybe starting a little bit on M&A and integration.

You clearly put a lot of effort into integration of M&A in the last couple of quarters here, and on the integration cost, how far would you say you are in the process of integrating, mainly Projektengagemang and Fimpec? Is the heavy work done now, to say, in terms of cost at least, or how do you view it here during 2026?

Thank you.

If I start with Projektengagemang that we bought last summer, we integrated them structurally, to say, into our organization 1st of Jan, meaning that they are fully integrated in our organization and in our systems. With that said, it take time before we get, fully up to speed in all units.

Of course, I would say that we are done with the structural parts of the integration, but now it's more about getting every employee and the full kind of synergy when it comes to our business synergies ahead. According to plan and a good in a good stage, to say, or state.

When it comes to Fimpec, that was an acquisition doing that we done did later last year, meaning that we are taking some integration costs in this quarter in Finland, and we are working with the integration in this quarter. You will see a gradual improvement linked to those acquisitions.

The same goes for our architecture where we established a new division in Belgium focusing on architects. We reorganized all architects into one division in Belgium, and now we are number one on the Belgian market when it comes to architecture.

I hope that answers your question.

Yes, it does. Thank you very much.

Maybe one more on the demand, the general demand. You say, yeah, market is mixed, it looks like your outlook is similar as previous quarters, but seems you increased your order book a little bit here.

Can you give any sense of the increase in the order book? Is it growing roughly in line with sales, or is it growing more or less?

Just to get an indication there. Thank you.

Ska du börja, eller ska jag? Dan, I would say we continue to strengthen our order book, and I would say both in absolute terms and also in relation to our, LTM sales.

I think I see a good development order on the order book. When it comes to the market, maybe you want to comment some more, Åsa?

As we reported, we see a quarter with almost the same, demand and sectors that is, strong and a bit weaker that we have seen previous quarters. When it comes to our order backlog, of course, we grow across, but it's very much linked to those segments where we see good demand, and that work we will continue, of course.

It's fair to comment on the geopolitical environment. In this quarter, we don't see any direct effects in our portfolio linked to the situation globally.

With that said, you need to pay attention to it and have great respect for the situation. Of course, if it gets prolonged, our clients might be influenced by energy prices and the overall investment climate, to say, and of course, then we might see things in our project portfolio.

When we talk about the business model, it's really about making sure that we really focus on our clients and on our projects so we really understand what is going on ahead. Another comment is also that when crisis like this occurs, and they're we are in the midst of this right now, of course, there might be a push for even a faster energy transition into more renewables in Europe.

I think the same agenda sticks, but we need to really understand ahead what is going on. Everyone else, we are following this situation closely and staying close to our clients.

Yes, makes sense. Thank you very much for the color.

Maybe a little bit final one from my side then. That was on the project adjustment in Finland.

Can you give a sense on the total side total size? I'm not sure you specify that, but is it just a couple of millions, or yeah, how much is that project adjustments you made in Finland?

Dan, I would say, project adjustments, whether they are negative or positive, it's really part of our ongoing business. You've seen the reduction in the profit in Finland.

We have given you the integration and restructuring costs. I think the remaining deviation, you can get a sense of the size of the negative project adjustments.

Fair. I think that was it from my side.

Thank you very much.

Thank you.

Thank you, operator, and good morning, Åsa and Jan.

Good morning.

I have a few questions from my side as well. First, if you could comment a little bit on the improvements seen in the average fees and billing ratios that you mentioned.

Expanded to 74.4%. Do you see large variations between the regions?

Obviously, Finland is tough, but and also to what extent are these fee increases triggered by pricing power versus mix effects in the projects?

We have continued our focus on billing ratio, meaning that we work with efficiency measures in all our business areas. To your question, of course, we know what good looks like within Sweco, and there is deviations between the different BAs, and that has more to do with how we are exposed in the specific markets and how the market is playing out right now.

Of course, there is deviation. We use that as best practice and benchmarking across the different business areas to really drive continuous performance.

We will continue to focus on this one and expand ahead as well. That is an important area for you.

When it comes to your other question, of course, for us, it's about focusing of increasing our prices on the market and making sure that we expand the prices when we put them out. Another part of that mix that you refer to is about how we deliver and execute our projects.

We minimize any negative project adjustments and work really efficient in our projects. How much is that is one part, and another part is hard to measure as we distribute 150,000 projects a year, but we work with all those measures in parallel to really make sure that we expand prices.

It's also about selecting and deselecting projects, of course, making sure that we try to win on quality and that we are, not, putting any pressure on our prices.

Perfect. May I also ask you, coming back to Finland, being a drag in the quarter and so on, tough market, and you did this restructuring integration cost, but in Finland, you also can use this system of temporary layoffs.

My question is really if is that more or less fully utilized, and then you have this 17 million for restructuring integration and also should we expect now that Finland at least will have a decent or strong billing ratio following these adjustments? Just a little bit more comments and flavor on Finland would be great.

Yes. We, of course, the available tools that we have, and temporary layoffs, we continue to use in Finland.

It's a little bit lower than last year, but we still absolutely use it. What we did in Finland is to reduce on a permanent basis some 38 people in the quarter, and this is really driven by, I would say, three things.

One, of course, is that we have to adapt to the current market situation. Secondly, is that we continue to drive efficiency improvement programs.

Thirdly, we have the integration of Fimpec. All of these, let's say, factors are behind the personal reduction in Finland.

To answer your question, yes, we continue to use all the tools available.

Just a comment from my side is that we have spoken about the Finnish market for quite a long time, but I have great trust in the Finnish management, and that they are taking the right measures and maneuvered the market in a really good way. We are winning great projects as well, and so the market is what the market is, but our management and our organization is doing a great job over there.

Good. My last question from my side, obviously, we hear this AI questions and AI development all the time, but is it possible to give some more concrete examples in projects where using AI now where you have can improve your own efficiency and productivity, and if you've seen, big impact on prices in versus in so far in the market triggered by AI usage?

Mmm. Our strategy is to work with AI or use AI in three different dimensions.

One is the individual productivity across Sweco, and there we have implemented, and we did in 2023, we're talking now three years, more or less on the date, where we have our own ChatGPT platform where everyone works and uses this in the Sweco environment every week. There we have assistants across different applications, and we have more than 70% of reoccurring use of that platform every week across.

The second part is that we work to automate our processes and rethinking our different processes in our projects. That has to do with more of a structural change when it comes to how we work.

The third part is digital innovation, where we sell more of AI solutions to our clients and supporting them with AI in the projects or in new ways, totally. I would say that if you think about where we are right now, we're talking three years in with AI, and we are focusing on expanding our prices and making sure that we are competitive and stay strong, and that we have the relevant competence, and that we make sure that we are calibrating where we have our competencies and where we grow and how we grow.

Of course, if you look at the scale of Sweco and that we are our strategy is to integrate AI across, it's really hard to, so far measure the real implications of AI. Of course, that is on our agenda all the time.

I think back to what we talked about before: expanding the prices, making sure that we stay competitive and that we win our contracts in the right way, and that we continuously evaluate new AI solutions. That is what we're focusing on right now.

I think it's important also to mention that there is a huge scarcity when it comes to qualitative competencies across Europe. Of course, and I've said it before, this is a tool for us to let AI support our engineers and architects so we actually can focus on qualitative work, analyses, and advising our clients, and be more productive as a whole, but also as individuals.

That is where we are right now. Concrete examples are hundreds and hundreds, but it has to do with when we do, report writing, when we do specific analysis, and when we test solutions to make a certain choice.

We can test much more with this tool. Of course, we have spent time, in previous times on things that is volume work, that we use AI and that we can concentrate more on the analysis and the, the decisions and the support for the client.

Hope that answers your question. It's quite a big question.

No, a good answer. Thank you so much.

Yes, good morning everyone. Just a few quick questions.

Firstly, on the you talked about 5% contribution to top line from M&A in the first quarter. Could you give an indication how much on EBITA that was from acquisitions made last year and this year, approximately sort of round numbers?

Also if you could update us on the timeline. I presume the idea of making these acquisitions were that they would close in on sort of group average in terms of margins.

When do you set that sort of timeline when you can be at that level? Börjar du, så fyller jag i?

Good morning, Johan.

Good morning. As Åsa was saying, the integration are progressing, I would say, very well, and we see good contributions from the acquisitions that we made last year.

I won't give you an exact number, Johan, but what I can tell you is that the contribution that we see in the first quarter from a margin point of view is on par with the group average. I think that can give you a sense for the contribution so far.

All right, gotcha. Speaking specifically about Sweden, if you add back the restructuring charges and calendar, I think you increased results 29% year-on-year.

Is there anything other than acquisitions that is contributing here? I'm just trying to understand underlying dynamics in the Swedish operations, whether there are any structural improvements there to talk about.

This has to do with the focus in the Swedish organization. That we have worked with for quite a long time when it comes to efficiency and also, the right kind of focus in the business and good projects wins.

It's a strong quarter from the Swedish organization and then, of course, adding the effects of the integration of Projektengagemang.

Gotcha. Just finally, I think you talked about flat margin year-over-year, adjusting for the calendar.

Still, the billing ratio is up almost I think it's up 80 bps year-over-year. I understand that there are some one-offs, some sort of charges and also some project adjustments, but is there anything else that is sort of working in the negative direction, such as the net price, wages, etc., in this quarter?

Personalkostnader. If I would mention, we did do some employee reductions in some selected countries, as I said, to adapt to the current market situation.

We are continuously to drive the internal efficiency programs. We are integrating the acquisitions from last year.

There are some workforce reductions in countries like Finland, Denmark, UK, part of Sweden. Of course, that is impacting the a bit the overall growth.

Thanks a lot.

Good morning, thank you for taking my questions.

Good morning, Johan. Good morning.

Three from my side. The first is a little bit back on Dan's question on the restructuring and integration work.

Can you give some specific guidance for coming, say, one, two quarters of anticipated restructuring charges that you're planning to take out?

Okay. I think what the way you should look at this is that the Projektengagemang integration, there we have taken, I would say, almost all of the costs.

When it comes to Fimpec, we took some of the costs this quarter in relation to some personnel reductions. We will take some more costs on the Fimpec integration during '26, more related to office consolidation, IT consolidation, things like that.

They will not be higher than what you saw in Q1. In short, Projektengagemang, you shouldn't expect really any significant cost coming through, and Fimpec integration, there will be some additional costs coming in the remainder of the year.

Just to be super clear, when you say not higher than what we saw in Q1, do you refer to the total amount for the rest of the year, or the quarterly kind of pace of amount?

I'm saying we took the 17 million charge in Finland in Q1 related to both restructuring and integration cost. The additional integration cost to come is less than that.

Is

less than what we booked in Q1.

Yeah. Then my second question is on the kind of cash flow statement, and I note that you're building up a little bit more working capital than you normally do, okay.

I cannot find any kind of more detailed comment in the report regarding seasonality, and from my perspective, you're building up more than the seasonal patterns should say that you should build up. What is the dynamic and driving forces behind the working capital build up?

I would say the what you see in the first quarter is, on one hand, a seasonal kind of increase in working capital, similar we saw last year. Then this year, we had some larger invoicing, the timing of some invoices that came a little bit different this year versus last year.

Nothing extraordinary, it's just the timing of some invoices that came through in the quarter.

Is it more like invoices coming at the end of '25 and is hampering now Q1 '26, or is it like invoicing coming should come in and support in Q2, the kind of H1 is kind of normal level?

I don't see, let's say, any abnormality in terms of the build up of overdue invoice or, let's say, trade receivables overdues or any. What you see is that working progress normally, to say, comes up in Q1 because, on one hand, you had the strong decrease in Q4 of the previous year.

I would say we see very similar pattern like we've seen in previous years. The only difference, as I said, this quarter is the timing of some invoices in difference versus the same quarter last year.

Okay. No kind of full year the full-year working capital swing should not deviate materially from what we have seen historically, to say.

Of course, I can't stand here and give a forecast for the full year, but I'm just saying, Johan, I don't see a change in the working capital build up here versus previous years. I would expect the same kind of seasonal pattern as we've seen in earlier years.

There's nothing else that indicates something different.

That's fine. My final question is on the Danish business, where we saw organic growth, revenue falling organically, but the margins being maintained.

We, and you mentioned that they perform well. We've seen them performing well for quite a while.

Should we be worried that giving lower kind of investment activity in the Danish kind of pharma industry that the Danish business can maybe, say, roll down both margin-wise and volume-wise?

First, maybe a comment from my side when it comes to the market. You all know that the investments in the pharma sector in Denmark has decreased a lot, and it of course affects the whole market.

Our Danish business has really been able to distribute other kinds of work, in parallel with this decrease. If you look at the decrease of our Danish business or actually that they're not growing in line with previous quarters, I would argue that in relation to that, they are doing a good job of sales and focusing on other segments.

With that said, we work in that sector continuously, and it's an important sector for us. It's they have, as you say, strong margins, they have focus on the right things, and it's really about continue growing in other segments in parallel.

No reason to anticipate a margin downtick in, say, the rest of '26?

We don't give any forecast, but the focus they have on operational excellence, that they will continue to work with.

Yeah. Perfect, that's all those were my three questions.

I'll get back in line. Thank you.

Thank you, Johan.

Yes, hi and good morning. Just one question from my side, and it's regarding the market and especially the weak real estate market.

I was just wondering, we have seen some positive signs regarding the market within the residential market in Sweden. Do you, even though it's from low levels, seen any light in some way regarding the residential market in Sweden, or do you view it as weak?

Good morning, Julia. I have to say if I look back, the overall residential market and commercial real estate has been weaker or weak since the inflation increased and the war broke out in Ukraine.

We have of course, our portfolio is quite broad, and we have worked with residential and commercial real estate all along, but on lower levels. It's we don't see a strengthening market or any market that opens up, if that is your question.

It's still on the weak side.

Yeah. Yeah.

I have to also add with the uncertainty that we now have, it's really about focusing on understanding how the market will play out ahead, of course.

Yeah. Perfect.

That was all from my side. Thank you.

Thank you.

Thank you so much. We have one question from Edward Donohue, Oneinvest, and I think I'm sending this one to you, Jan.

Question goes like this. "Good morning," he also says.

"I was wondering why Central Europe and Germany's strength of organic growth was not reflecting in the EBITA percentage progression."

Thank you for the question online question there. I would say Germany had a bit higher cost coming through in Q1.

Other but besides that, I would say the performance in Q1 is in line with the previous seasonal view for Q1. I would say otherwise pretty much in line with our expectation except for a little bit higher cost coming through in the quarter.

Okay. Thank you for that question.

With that, no further questions on my part, and I don't think in the phone line either, operator? No.

With that, we'd like to thank you for joining us this morning, and also a quick reminder of that Sweco will release our Q2 report on the 17th of July. Thank you and have a nice day.

Thank you.

Thank you.