KB Components AB’s shares fell 5.4% to $42.20 in early trading after the Swedish auto parts manufacturer reported a 120-basis-point decline in its adjusted EBITDA margin for the second quarter of 2026.
Net sales rose 6.2% year-over-year to SEK 737 million, driven by a 10% contribution from acquisitions completed in late 2025 and May 2026. Organic growth, however, contracted 2% for the quarter, while currency effects shaved another 2% off revenue. Adjusted EBITDA totaled SEK 95 million, down 3.1% from SEK 98 million a year earlier, with the margin narrowing to 12.9% from 14.1%. Operating profit remained flat at SEK 52 million, while adjusted earnings per share declined 5.7% to SEK 0.50.
The company’s operating cash flow fell to SEK 100 million from SEK 186 million in the prior-year period, reflecting higher restructuring costs tied to its multi-year consolidation plan. Total assets increased to SEK 2.57 billion, though equity declined to SEK 550 million, lowering the equity-to-asset ratio to 21.4%. Net debt excluding leasing obligations rose to SEK 810 million, pushing the interest-bearing net debt to adjusted EBITDA ratio to 2.7x from 1.7x a year earlier.
Regional performance showed divergent trends. Europe, now the largest contributor at 55% of net sales, posted a 19% increase in acquired growth and a 3% organic rise, with adjusted EBITDA margins holding steady at 14.8%. North America, accounting for 38% of revenue, saw a 5% organic decline and a 2% currency drag, with adjusted EBIT margins contracting to 1.5% from 5.6%. Asia, representing 7% of sales, reported a 30% organic increase despite a 9% currency headwind, with EBIT margins remaining robust at 15%.
Management highlighted progress on its restructuring initiatives, including the relocation of production from Schleißheim, Germany to Slovakia and Lithuania by December 2026, and the transfer of labor-intensive manufacturing from Windsor, Canada to Puebla and Irapuato, Mexico, expected to benefit operations in Q1 2027. CEO Magnus Andersson noted that the company is in the early stages of volume ramp-up for Rivian’s R2 model, launched in April 2026, with gradual increases in component production underway. He also stated that raw material pricing has been stabilized for the third quarter.
KB Components, founded in 1947 in Örkelljunga, Sweden, is pursuing a planned uplisting to Nasdaq’s main market around May or June 2027.
