GARO AB, the Swedish electrical installations specialist listed on Nasdaq Stockholm, has reported a 6% rise in third-quarter net sales alongside a sharp improvement in operating profitability, but a non-cash impairment charge of MSEK 111.3 linked to the discontinuation of its GARO Entity product family pushed the company to a net loss of MSEK 100.0 for the July–September 2026 period. The interim report, published on 13 November 2026, covers the nine months to September 2026 and also confirms that GARO is relocating production from Poland to its Gnosjö and Hillerstorp facilities, targeting completion by December 2026. Investors will be watching closely how the restructuring affects the company's cost base and cash generation in the final quarter of the year.

Key Points

  • GARO AB (Nasdaq Stockholm: GARO; reference 0REY) — Swedish developer and manufacturer of electrical installation products and E-mobility solutions
  • Q3 2026 net sales rose 6% year-on-year to MSEK 265.9, while operating EBIT improved to MSEK 9.9 from MSEK 2.5 in the prior-year period
  • A non-recurring, non-cash impairment of MSEK 111.3 was charged in connection with the decision to discontinue the GARO Entity product family, resulting in reported EBIT of MSEK -105.8
  • Investors should monitor the progress of the Poland-to-Gnosjö production relocation and any further guidance on the nine-month operating EBIT loss of MSEK 20.5

GARO's Q3 2026 Revenue Rises 6% to MSEK 265.9 as Operating Margin Recovers to 3.8%

GARO's third-quarter net sales reached MSEK 265.9, compared with MSEK 251.3 in the equivalent period of 2025, representing a 6% increase and a marked reversal from the 7% decline reported in the prior-year quarter. Operating EBIT, which strips out the non-recurring impairment, came in at MSEK 9.9 against MSEK 2.5 previously, lifting the operating EBIT margin to 3.8% from 1.0%. The announcement states that earnings per share for the quarter amounted to SEK -2.0, compared with SEK -0.09 a year earlier, reflecting the full weight of the impairment charge on the reported bottom line. Cash flow from operating activities was MSEK -10.8 versus a positive MSEK 11.0 in Q3 2025.

MSEK 111.3 Non-Cash Impairment Charged Following Decision to Discontinue GARO Entity Product Family

The most significant event of the quarter was GARO's October decision to discontinue the GARO Entity product family, a move the company describes in a separate press release referenced within the interim report. The discontinuation triggered a non-cash impairment of MSEK 111.3, which was charged directly to reported EBIT and drove the quarter's EBIT to MSEK -105.8. For the nine months to September 2026, the same impairment brought total reported EBIT to MSEK -142.6 and net income to MSEK -137.6, with nine-month earnings per share of SEK -2.75. The company intends to intensify its focus on the Electrification segment following this strategic withdrawal.

Poland Production Relocation to Gnosjö and Hillerstorp Targeted for Completion by December 2026

Alongside the product family discontinuation, GARO confirmed it is consolidating its manufacturing footprint by relocating production from Poland to its Swedish sites in Gnosjö and Hillerstorp. The announcement states the goal is for the relocation to be complete by December 2026, with a view to streamlining operations. GARO, which was founded in 1939 and has its head office in Gnosjö, develops and markets products across Electrical Distribution, E-mobility, Project Business, and Temporary Power. The relocation represents a meaningful operational shift that could influence the company's cost structure into 2027, though no specific financial targets related to the move were disclosed in the announcement.

Nine-Month Operating Loss and Negative Cash Flow Highlight Near-Term Pressure on GARO's Finances

Across the first nine months of 2026, GARO's net sales were broadly flat at MSEK 784.4 versus MSEK 782.5 in the same period of 2025, a 0% increase compared with a 10% decline a year earlier. However, the nine-month operating EBIT was MSEK -20.5, against MSEK 3.8 in the prior-year period, indicating that underlying profitability remains under pressure outside the stronger third quarter. Cash flow from operating activities for the nine-month period was MSEK -5.0, compared with a positive MSEK 20.7 previously. Investors may be watching whether GARO's renewed Electrification focus and production consolidation can restore positive operating cash flow by the year end.