I thought I’d start a thread on Momentum Group. The company doesn’t seem to be very well known on the forum (in Finland?), but perhaps there are people interested in the company who could share their thoughts and knowledge? I found, among other things, Verneri’s informative initial purchase in the “Buy/Sell” thread from July '22, and there has been writing about the company in the Boreo thread in February '21.
Quoted and translated from the website:
Momentum Group operates, develops, and acquires successful sustainable companies in the Nordic region through active ownership with decentralized profit and business responsibility. The Group consists of several companies that together form one of the Nordic region’s leading suppliers of industrial components, industrial services, and other industrial services. What the companies have in common is that they help make customers’ operations easier, safer, and more profitable by offering sustainable, long-lasting products and services with a strong local presence close to the customers. The Group’s revenue is approximately SEK 1.7 billion and it has around 550 employees.
Revenue increased by 17 percent to SEK 1,739 million (1,491), of which 10 percent was from comparable units.
Operating profit rose by 19 percent to SEK 185 million (155), corresponding to an operating margin of 10.6 percent (10.4). The result included items affecting comparability of SEK -6 million (-6), which were due to the separate listing process.
EBITA grew by 19 percent to SEK 204 million (171), corresponding to an EBITA margin of 11.7 percent (11.5).
Profit for the period increased by 20 percent to SEK 140 million (117), corresponding to earnings per share of SEK 2.70 (2.30).
Return on working capital (EBITA/WC) was 61 percent (61).
The equity ratio was 42 percent (47) at the end of the period.
The Board of Directors proposes a dividend of SEK 1.00 per share (–).
A relatively recent presentation from CEO Ulf Lilius. He articulates Momentum’s vision and strategy quite well between the lines here. The cash position is in good shape at the moment, and one almost starts to hope for a downturn where Momentum could potentially scoop up new acquisitions at better prices. The CEO is a seasoned professional in the industry, and his somewhat modest demeanor appeals to me, at least.
The latest acquisition at an EV/EBITA multiple of 8x made me realize that in Sweden, a lower return on invested capital (~12.5%) seems to be accepted, whereas here at home, for example, Boreo buys companies at 5-6x EBITA. Of course, that Askalon or whatever is also bigger and has grown impressively.
Of course, if you believe Momentum will continue >15% earnings growth under Ulff’s guidance for, say, the next 10 years (revenue would then be 7.5 billion SEK, profit roughly 650 million SEK) and you slap an off-the-cuff EV/NOPAT ~20 multiple on a value-creating serial acquirer (debt is low for now, so that translates almost like P/E), the share would be 270 SEK in 10 years. CAGR >9%, which in itself isn’t bad but isn’t enough for me, but at the previous purchase price (~57 SEK), the CAGR is 19%, which is really great.
This is just some back-of-the-envelope musing.
This really is a top-notch outfit, a shame I didn’t buy more in the autumn, but that’s how it goes.
This is an exceptionally quiet thread, but I’ll post about the latest acquisition here. Revenue 55 mSEK, but I didn’t spot the purchase price.
“Momentum Group has today signed an agreement to acquire 60 per cent of the
shares in Sikama AB, a specialist in gas and fluid handling for industrial
customers in Sweden. Sikama will be part of the new Infrastructure business area
under the Flow Technology business unit.”
The thread is still unusually quiet, and linking to press releases won’t liven it up, but I’ll post it anyway
Momentum entered the market outside the Nordics with an acquisition in the UK. Expanding outside the Nordics likely carries slightly higher risks, but this was inevitable at some point. In the future, there wouldn’t be enough room to grow or a sufficient number of suitable acquisition targets in the Nordics.
A small deal to start, and apparently, relationships had been cultivated for a long time. I consider these controlled expansions into new markets to be very important for the long-term investment case. Otherwise, at some point, we’ll be in a situation where that abundant cash flow can no longer be reinvested at the desired return, and compounding stops or slows down
During these quiet summer days, I’ve been keeping an eye on these Swedish serial acquirers. I noticed that Momentum has gradually drifted down -30% from its peak.
But looking at the numbers, it doesn’t look like a buy yet. If you compare it to Berner using “monkey-level” analysis, the EV/EBIT is much higher based on realized earnings (~24 vs ~15). However, both companies are showing similar growth and ROI.
At the same time, the EBITDA has been falling for several quarters in a row I think I’ll stick with Berner for now and wait for the valuation to melt down. Here are some general key figures from Börsdata:
Momentum, like many other Swedish industrial serial acquirers, saw a surge in growth in Q2… I wonder if this is a sign of a recovery in Nordic industry or just the relief of the Iran war becoming “routine.”
Second quarter 2026
Revenue increased by 8% SEK 886 million (824). For comparable units, sales were unchanged.
Operating profit increased by 24% to SEK 97 million (78), corresponding to an operating margin of 10.9% (9.5).
EBITA increased by 23% to SEK 113 million (92), corresponding to an EBITA margin of 12.8% (11.2).
Profit for the quarter amounted to SEK 70 million (54), corresponding to earnings per share of SEK 1.30 (1.05).
Acquisition of Actuated Solutions, a specialist in valve automation in the UK.
Acquisition of Limo, a specialist in motion control and energy-absorbing industrial components.
Acquisition of Ceon, a specialist in valves and actuators with a focus on the marine sector in the Nordic region.
Acquisition of IntentiusGruppen (Intentius Industri-komponenter and Tryggve Olson Normdetaljer), a specialist in advanced machining and industrial components.
Legal disclaimer
I think I’ll stick with Berner for now and wait for the valuation to melt down. Here are some general key figures from Börsdata: