CEO's comments

CEO'S COMMENT Q2-2026

Growth for both business areas and strong financial position

Both our business areas reported organic growth in the second quarter, contributing to a 4% increase in consolidated sales, adjusted for currency. We continue to experience a challenging business environment, and although our operations are generally showing sound resilience, we are affected by factors including higher oil prices. As we have a certain lag before these cost increases can be passed on to customers, this explains most of the reduced EBITA margin, which stood at 10.1% in the second quarter. However, we are working proactively and tirelessly on the areas we are able to influence, such as innovation, heightened efficiency, and a focused approach throughout the entire supply chain.

In the Medical Solutions business area, which accounts for 56% of Group revenues, currency-adjusted sales increased by 4% in the second quarter. With regard to the previously communicated major customer project in the Hungarian operations, parts of the production equipment have now passed quality approval, and we have commenced commercial deliveries. Additional capacity will be installed and fine-tuned with a view to gradually increasing delivery capacity in line with the communicated schedule. The price increases for raw materials mentioned above, as well as the start-up of new projects and new products that have not yet reached planned volumes, had a negative impact on the margin, which fell to 11.7%. Investments in expansion to support future growth are proceeding according to plan at several of our existing facilities.

Net sales for the Engineered Solutions business area increased by 3% in the quarter, adjusted for currency. It is encouraging that our operations in Materials grew by as much as 19%, adjusted for currency, driven by high volumes for data centers, satellites and the aerospace and defense industry. The Hygiene and Automotive market areas saw sustained lower demand. The EBITA margin for Engineered Solutions fell to 10.3%. Higher raw material prices had a negative impact on the margin, while a higher proportion of Materials, which now accounts for over one fifth of the business area’s sales, made a positive contribution.

Nolato’s financial position remains very strong, with net liabilities in relation to operating profit (EBITDA) of 0.7x at the end of the second quarter, providing us with financial flexibility. Acquisitions are, and have long been, a natural part of Nolato’s growth strategy and we work continuously to add further operations that enhance shareholder value in both the short and long term. Focus is on complementing our existing business with expertise in new materials and technologies to broaden the value chain and hence our offering. Our recently announced sale of the Romanian operations is part of this strategy and of streamlining the Group.

Finally, this will be my last interim report for Nolato. After more than 30 years with the company, and more than a decade as President and CEO, the time is now right for me to hand over the responsibility to Anders Björklund, with whom I have worked over the past few years. I’m proud of what we’ve achieved together and am convinced that Nolato is well-positioned for a strong and successful future.

Christer Wahlquist

President and CEO 
2026-07-17

CEO'S COMMENT Q1-2026

Volume growth, stable margins and strong financial position

Consolidated sales in the first quarter increased by 3%, adjusted for currency, in a persistently challenging operating environment due mainly to geopolitical uncertainty. Our operations are generally showing robust resilience, with an unchanged EBITA margin at 11.0% during the first quarter, thanks not least to longstanding and close customer relationships. We are affected by higher prices of input goods, although these are passed onto customers over time, which leads to temporary effects for as long as the uncertainty persists. We are working tirelessly on the areas we are able to influence, such as innovation, heightened efficiency, and a focused approach throughout the entire supply chain.

In the Medical Solutions business area, representing 57% of the Group’s revenues, sales increased by 5% adjusted for currency in the first quarter. At the same time, the EBITA margin was 11.8% – slightly lower than last year. The start-up of new projects and new products that have not yet reached planned volumes have a negative impact on the margin. Investments in future growth are proceeding according to plan, through expanding our capacity in both Hungary and Poland, and establishing operations in Malaysia. In terms of the Hungarian operations, and our previously communicated major customer project, validation deliveries have continued, and commercial volumes are planned from the end of the second quarter.

In the Engineered Solutions business area, net sales adjusted for currency increased by 1% in the quarter, from being negative in the fourth quarter. The Consumer electronics market area rose sharply compared to last year driven by smart home products, while Hygiene saw reduced volumes due to continuing inventory adjustments. Operations in Materials grew by a full 15% adjusted for currency. The upbeat performance is explained by solid demand in new products and technology areas, chiefly for data centers, but also for defenserelated sectors. Volumes in the automotive industry fell slightly. EBITA margin for Engineered Solutions rose by 0.5 percentage points to 10.6%. A favorable product mix and a greater proportion of Materials, which now account for over one fifth of the business area’s sales, made a positive contribution.

Despite an uncertain operating environment, Nolato continues on its strategic journey with increased profitable growth, both organic and acquired. We are working continuously on broadening our offering and strengthening our relationship with both existing and potential customers. Our global capabilities enable us to direct business and production to the regions that best meet our customers’ needs, and to further advance our market positions. Our financial position remains very strong, with net liabilities in relation to operating profit (EBITDA) that amounted to 0.5x at the end of the quarter, enabling an intensified acquisition agenda. Focus is on complementing our existing business with expertise in new materials and technologies.

Christer Wahlquist

President and CEO 
2026-05-06

CEO'S COMMENT annual report 2025

For Nolato, 2025 was a year when the Group advanced its position in line with our new financial targets, despite a turbulent global landscape at times. Geopolitical tensions – and, not least, the uncertainty surrounding tariffs and trade barriers – have impacted our customers’ flows and business. At the same time, the Group’s broad geographical footprint combined with our well-diversified portfolio, with customers in many different industries, helped to limit the impact on our business. Despite strong currency headwinds, we succeeded in improving our profitability through strengthened margins. Overall, the Group stood strong in turbulent times.

"To reinforce Nolato’s advancement up the value chain, we continue to pursue an active and selective acquisition agenda."

During the year, the Board of Directors decided on new financial targets that clarify our ambition for Nolato to continue to grow with increased profitability in the long term. Over a business cycle, annual organic growth is to exceed 8%, while EBITA margin is to exceed 12%. Through efficient resource utilization and disciplined capital allocation, the objective is also for return on capital employed to exceed 15% over a business cycle. As we summarize 2025, we see that we took a significant step in strengthening our profitability and reached 14.2% – fully in line with ambitions for the year. Underlying organic growth increased by 2%, which is a step toward our long-term target of 8%. For the full year, Nolato achieved sales of SEK 9,462 million (9,664) with an operating profit of SEK 1,065 million (958), equaling an operating margin of 11.3%.

Working closely alongside customers is the key to success

Our strategy for attaining our targets is for Nolato to be the customer’s first choice of innovative partner in sustainable design and production. During the year, the Group advanced its positions. Strong presence in all regions is fundamental to our ability to serve large global customers, although the key to success is ultimately about early involvement in customers’ development processes. During the year, our organization was reinforced to better support their development work. By proposing solutions to customers that improve resource efficiency and cut both costs and carbon footprint, we can strengthen our own as well as our customers’ business. In this respect, Technical Design Centers (TDC) continue to play a key role and the organization was enhanced and expanded during the year.

In the Engineered Solutions business area, a global sales function has been established to sharpen focus on business in which our expertise and capabilities for delivering comprehensive solutions are valued. In Medical Solutions, manufacturing and assembly of complete systems – what we call “box build” – is already an important part of our business, with the Drug Delivery market area at the forefront. At the same time, we also see large potential in other areas such as consumer electronics. We also see increased opportunities for combination deals involving Materials, for example. Our advancement up the value chain is a core element of our strategy and a long-term effort that contributes to sustainably higher margins and increased growth.

To support this advancement, expansion of our facilities in Malaysia, Poland and Hungary continued. Malaysia is becoming an increasingly important hub in Asia, not least as more customers seek redundancy in their supply chains, guided by a “China plus one” approach. Poland is a large market and a fast-growing country that serves as the gateway to Eastern Europe. In Hungary, we have expanded to serve a major existing customer in medical devices used to administer medication for the treatment of overweight and diabetes. During the year, validation runs started at the Hungarian facility. According to plan, this work will continue in the first half of 2026 to ensure required quality ahead of the start of commercial production.

Strategic acquisition and sustainability agenda adds value for customers

To strengthen Nolato’s advancement up the value chain, we continue to pursue an active and selective acquisition agenda. In the past, our acquisition strategy has focused on building geographical reach to enable meeting the needs of customers on all continents. Today, focus is on complementing the existing business with new expertise in materials and technologies that strengthens our offering and enhances value added. At the same time, we are not averse to divesting operations where we do not see strategic and financial potential – in order to free up resources for areas with better long-term prospects instead.

For Nolato, structured and ambitious sustainability efforts are both a business-critical tool and an important competitive instrument. In 2025, we made clear progress – new ambitious sustainability goals with a horizon to 2030 were set, including net zero targets approved by the Science Based Targets initiative. The proportion of renewable electricity increased further during the year, now amounting to 99.9% of the Group’s total electricity consumption. At the same time, our absolute emissions in Scope 1 and 2 fell by 83% from 2024. Our ambitious sustainability work has been validated externally through improved ratings and a maintained gold level in EcoVadis, an upgraded rating in CDP and by the Financial Times once again naming Nolato as a European climate leader.

During the year, we made clear progress in terms of margin, while growth did not yet meet our long-term targets. Our business model is based on longstanding partnerships, which means that it takes time to establish partnerships and scale business. Ahead of 2026, there is a clearer shift in focus toward growth and acquisitions. With our broad business base, we are soundly equipped and well positioned to continue our growth journey – even in a global environment of persistent geopolitical uncertainty – and I look to the future with confidence. Finally, I would like to thank all our employees for their outstanding contributions over the past year. 

Torekov, April 2026

Christer Wahlquist

President and CEO