Breaking Down Beijer Alma AB (publ) Financial Health: Key Insights for Investors

From its start in 1983 as Beijer Alma Industri & Handel to a 1998 rebrand and major strategic moves like acquiring Lesjöfors in 2006 and Beijer Tech in 2015, Beijer Alma AB has grown through targeted acquisitions (27 added since 2019 and Swemas AB in 2025) into a decentralized industrial group that generates revenue from springs, wire and flat strip components and industrial trading across 60 markets; today ~13,149 shareholders own the Nasdaq Stockholm Mid Cap-listed company, with institutional investors holding 62.1% of the capital (31.7% of votes), foreign owners 28.8% of capital (14.8% of votes) and the Anders Wall Foundations as the largest single shareholder at 12.75% (Dec 31, 2024), while governance under Chairman Johan Wall and CEO Oscar Fredell (appointed November 2025) supports a mission of profitable growth through long-term ownership, customer-tailored niche products, sustainability and active subsidiary ownership-primarily via Lesjöfors (industrial springs) and Beijer Tech (industrial trading/manufacturing)-leveraging a strong financial position to pursue acquisitions like International Industrial Springs and expand into markets such as India.

Beijer Alma AB (0YG7.L): Intro

• Founded in 1983 as Beijer Alma Industri & Handel, initially focused on component manufacturing and industrial trading.
• Rebranded to Beijer Alma AB in 1998 to reflect expanded operations and international presence.
• Major strategic acquisitions include Lesjöfors (2006), strengthening the springs and suspension product portfolio, and Beijer Tech (acquired structure formalized in 2015), which diversified the company into Nordic industrial trading and manufacturing.
• Since 2019 the group has added 27 businesses through acquisitions to broaden market reach, capabilities and aftermarket services.
• In 2025 Beijer Alma continued expansion with the acquisition of Swemas AB, a Swedish supplier of consumables and spare parts to the stone and gravel industry.

• 1983-1998: Establishment and domestic industrial-trading focus; evolution into a multi-brand component group.
• 1998-2006: Internationalization and rebranding to Beijer Alma AB to reflect broader operations.
• 2006: Acquisition of Lesjöfors - one of Europe's leading spring manufacturers - added production scale, engineering know-how and a global sales footprint.
• 2015: Integration of Beijer Tech moved the group deeper into industrial trading, aftermarket parts and contract manufacturing across the Nordics.
• 2019-2025: Accelerated roll-up M&A strategy - 27 add-on acquisitions to strengthen channels, add recurring aftermarket revenue and capture local aftermarket service markets; latest noted acquisition Swemas AB in 2025.

• Multi-brand operating model: the group operates through independent business units/brands that retain technical and commercial autonomy while leveraging group-level financing, M&A capability and shared governance.
• Three principal clusters (illustrative): Lesjöfors (springs & wire products), Beijer Tech & industrial trading (components, consumables, service parts), and niche engineered product units (sensors, connectors, tailor-made assemblies).
• Revenue drivers:
  • Product sales - engineered components and standard catalogue parts sold to OEMs and distributors.
  • Aftermarket & spare parts - higher-margin recurring revenues from service, maintenance and consumables (expanded via acquisitions such as Swemas AB).
  • Contract manufacturing & value-added assembly - customized production for industrial customers.
  • Geographic expansion - local footprint gains via acquisitions to access regional customers and distribution channels.
• Value proposition: broad product breadth, close aftermarket service, and rapid integration of acquired niche players to deliver cross-sell and scale benefits.

• Product mix: standard catalogue items (volume-driven, lower margin) vs engineered/custom products (project-driven, higher margin).
• Aftermarket and consumables: recurring orders, less cyclical and typically higher gross margin - strategic focus of recent acquisitions.
• M&A-driven growth: acquisitions contribute immediate revenue, add local market share and enable cost synergies (centralized purchasing, shared R&D and logistics).
• Operational levers: price management, input-cost pass-through for metal/wire components, production efficiency and scale in manufacturing sites.
• Financial discipline: historically targeted EBIT margin improvements post-acquisition via integration and cross-selling.

• M&A is a core deployment of capital; the group typically finances acquisitions through a mix of cash, debt and equity depending on size and timing.
• Return profile: management targets accretive acquisitions that strengthen recurring aftermarket revenues and improve margins within 12-36 months post-close.
• Working capital: inventory and receivables rise with acquired trading businesses; effective integration and centralized purchasing are used to mitigate working-capital inflation.

• Listed on Nasdaq Stockholm (ticker 0YG7.L) with a mix of institutional shareholders and long-term private investors; management and board historically pursue long-term, industrial ownership philosophy.
• Capital structure focuses on a balanced net debt/EBITDA ratio to preserve room for add-on acquisitions while maintaining investment-grade-like metrics for cost-efficient funding.
• Governance: decentralized operating model with group-level oversight for M&A, treasury, sustainability and reporting.

• Scale aftermarket and consumables to increase recurring revenue share (Swemas AB acquisition in 2025 as a targeted aftermarket play in stone/gravel consumables).
• Continue buy-and-build approach - 27 acquisitions since 2019 to densify regional networks and product breadth.
• Drive margin improvement via integration synergies, centralized purchasing and cross-selling among acquired brands.
• Maintain selective capital discipline to balance organic investments (production capacity, automation) with acquisitive growth.

Beijer Alma AB (0YG7.L): History

• Founded as a family-linked industrial concern; long history of incremental acquisitions to broaden product offering and geographic reach.
• Transitioned to a listed group to finance scale-up and to professionalize governance.
• Management continuity with a Board-led governance model; Chairman Johan Wall and President & CEO Oscar Fredell (appointed November 2025).

• Listing: Nasdaq Stockholm Mid Cap - provides market liquidity and capital-raising capability.
• Governance: Board of Directors chaired by Johan Wall; CEO Oscar Fredell since Nov 2025.

• Mission: to deliver engineered components and system solutions that improve customers' product performance, uptime and cost-efficiency across industrial end-markets.
• How it makes money:
  • Sale of precision components and subsystems to OEMs and aftermarket channels.
  • Engineering services, customized assemblies and value-added processing (e.g., heat treatment, surface treatment, machining).
  • Recurring aftermarket sales and service contracts that enhance margin stability.

• Diversified customer base across multiple industrial sectors reduces end-market cyclicality.
• Scale via acquisitions: inorganic growth expands product range, manufacturing footprint and cross-selling.
• Institutional investor base (62.1% of capital) provides stability and access to long-term capital.

Beijer Alma AB (0YG7.L): Ownership Structure

• Mission: Achieve profitable growth via long-term ownership, active governance and decentralised entrepreneurial responsibility in subsidiaries.
• Customer focus: Offer products and services adapted to customers' exact requirements to maximise customer value and retention.
• International expansion: Target selected global niches where technical know-how and customised solutions create scalable advantages.
• Sustainability: Integrate responsible business practices to turn ESG into business opportunities and reduce operational and regulatory risks.
• Values & governance: A Code of Conduct aligned with international conventions on human rights, labour, environment and anti-corruption; senior management drives cultural development and compliance across the group.

• Ownership model: Long-term industrial ownership of profitable niche technology and component businesses; subsidiaries operate with operational autonomy under group governance.
• Revenue model: Sales of specialised components, systems and aftermarket services to industrial customers, often under long-term supply relationships and recurring service revenue.
• Value creation: Margin expansion through operational improvements, product development, cross-selling and international market access for portfolio companies.

• Concentrated long-term shareholders, including founding families and institutional investors, supporting strategic continuity and long-term value creation.
• Active Board and Group Management who set financial targets, capital allocation principles and sustainability priorities across subsidiaries.
• Focus on cash generation and measured reinvestment: acquisitions in complementary niches and dividends/share buybacks when appropriate.

Beijer Alma AB (0YG7.L): Mission and Values

• Lesjöfors - specialized industrial springs and spring-related components for automotive, construction, electronics and general industry.
• Beijer Tech - industrial trading, custom manufacturing and sales of components, machine parts and engineered solutions across multiple industrial segments.

• Decentralized business model: subsidiaries run operationally autonomous units with local leadership empowered to manage day-to-day operations.
• Central targets and reporting: the group board and executive management set financial targets, strategic priorities and a standardized reporting cadence for performance monitoring.
• Active ownership: corporate management participates in strategy, business development and cross-unit synergies while providing governance and performance follow-up.
• Shared services and support: the parent supplies selected administrative resources (finance, HR, legal, IT) to increase efficiency and scalability for subsidiaries.

• Acquisition focus: small to medium-sized industrial companies that complement Lesjöfors' or Beijer Tech's product mix, customer base or geographic footprint.
• Integration approach: maintain local management and operational autonomy post-acquisition while aligning on financial targets, governance and cross-selling opportunities.
• Financial capacity: a conservative balance sheet and recurring cash flow enable acquisition financing through a mix of cash, debt and retained earnings.

• Product sales: manufacturing and sale of springs, components and engineered parts through Lesjöfors and custom/manufactured products via Beijer Tech.
• Trading and distribution: margins on traded industrial goods, spare parts and assembly components sold to industrial customers and distributors.
• Value-added services: design, engineering support, assembly and after-sales services that enhance margins and customer stickiness.
• Acquisition-driven growth: bolt-on acquisitions increase scale, broaden product offerings and create cross-selling opportunities that contribute to recurring revenue and improved profitability.

• Diversified end markets - exposure across automotive, construction, industrial equipment and electronics reduces cyclicality.
• Global manufacturing footprint - production sites close to customers to lower lead times and logistics costs.
• Decentralized decision-making - fast local responses while leveraging group-level capital and strategy.

Beijer Alma AB (0YG7.L): How It Works

• Core revenue streams: sale of springs, wire and flat strip components; industrial trading of consumables, components and machinery; fluid technology products and services.
• End markets: automotive, engineering, medical technology, infrastructure, energy and general industry.
• Geographic reach: direct sales and distribution networks in about 60 markets, reducing concentration risk.

• Manufacturing sales - precision springs, stamped and formed wire products, flat strip components supplied to OEMs and sub-suppliers; these are often custom-engineered and high-margin.
• Trading and distribution - sourcing and reselling consumables, hydraulics, pneumatics and machine parts through trading companies within the group, providing recurring revenue and inventory-driven margins.
• Project and engineering services - value-added design, testing and assembly services bundled with components, enabling premium pricing.
• Acquisitions and platform expansion - inorganic growth increases product breadth and customer penetration; recent transactions (e.g., Swemas AB, International Industrial Springs) add both capabilities and revenue.
• Aftermarket and spare parts - spare parts and service contracts produce steady, higher-margin follow-on sales.

• Customer diversification: sales distributed across multiple sectors lowers dependency on any single industry cycle.
• Pricing power: tailored solutions and technical know-how allow the group to command premium pricing vs pure commodity suppliers.

• Manufacturing and component sales - majority share of group revenue (often 50-70%).
• Trading and distribution - significant recurring portion (typically 20-40%).
• Services, aftermarket and licensing - remainder, but higher margin.

• Vertical breadth - combining precision manufacturing with distribution captures more of the value chain.
• Specialization - engineering expertise in springs and precision metal components creates differentiation.
• Acquisition strategy - targeted add‑ons (e.g., Swemas AB, International Industrial Springs) expand market access and product range while adding cross‑sell opportunities.
• Global footprint - sales in ~60 markets smooth demand swings and open growth corridors in emerging regions.
• Focus on customer value - bespoke solutions and service orientation enable premium pricing and stronger gross margins.

• Order visibility is often medium-term (weeks to months) for trading items, longer for engineered components tied to OEM programs.
• Working capital patterns reflect inventory for trading businesses and receivables from industrial customers; managing cycles is essential for cash conversion.
• Currency exposure from international sales is managed at group level; acquisitions add complexity but also diversification.

Beijer Alma AB (0YG7.L): How It Makes Money

• Primary revenue streams: product sales (springs, cables, modules), aftermarket services, and project/custom engineering contracts.
• Geographic diversification reduces sensitivity to any single regional downturn (Europe, Asia, North America).
• Acquisition-led growth complements organic investment in production capacity and customer-specific product development.

• Strong European foothold in spring manufacturing via Lesjöfors: long-standing OEM contracts, broad product range from small precision springs to heavy industrial applications.
• Strategic entry into India through the acquisition of International Industrial Springs positions the group to capture lower-cost manufacturing, faster access to Asian OEMs, and local aftermarket growth.
• Diversified product portfolio across mechanical and electrical components provides resilience against regional and sectoral cycles-softness in one end market often offset by stability in others.
• Ongoing acquisition strategy: historically, acquisitions have increased scale and margins by adding specialized product lines and regional warehouses; management signals continued M&A as a growth lever.
• Sustainability focus-energy efficiency in manufacturing, material recycling, and supplier responsibility-strengthens customer relationships and aligns with procurement ESG criteria in major OEMs.
• Leadership transition to CEO Oscar Fredell in November 2025 is expected to inject new strategic emphasis on digitalization of production, deeper aftermarket services, and accelerated geographic expansion in Asia.