Nordic Cantillon File · Acquisition group

LifcoLIFCO B

Lifco owns and buys small and mid-sized companies in niches across dental, demolition and tools, and systems solutions for areas such as environmental technology, forestry machines and control systems. A couple of hundred subsidiaries are run on their own.

SEK 127bnMarket value
SEK 280.40Share price
SEK 28.3bnRevenue 2025
18.3%Operating margin
01 Where the money comes from

Lifco had revenue of SEK 28.3bn in 2025. That is 15% more a year since 2020.

Revenue by year, operating margin as the line
SEK 14bn2020SEK 17bn2021SEK 22bn2022SEK 24bn2023SEK 26bn2024SEK 28bn2025

The subsidiaries hold strong positions in small markets and earn high margins. Lifco steers on profitability rather than size, takes the cash flow and buys more companies with it. Most of the growth comes from acquisitions.

Latest report: January–September 2026

NowYear before
Net salesSEK 22,288mSEK 20,717m
EBITASEK 5,072m, 22.8%SEK 4,600m, 22.2%
Net profit for the periodSEK 2,930mSEK 2,624m
Earnings per shareSEK 6.38SEK 5.71
Cash flow from operating activitiesSEK 3,514mSEK 3,138m
Organic growth2.5%

Source: Lifco, Interim report January–September 2026, p. 1. Interim reports are not filed in ESEF, so these figures are read by hand from the report.

Revenue from the group income statement in the annual report (ESEF). Growth is the average annual change.

02 Where the money goes

Of every 100 in sales, 18 became operating profit in 2025. Over the period it has ranged from 16 to 19.

YearRevenueOperating profitMarginNet profitOperating cash flowCash conversion
2020SEK 13.8bnSEK 2.3bn16.5%SEK 1.7bnSEK 2.8bn169%
2021SEK 17.5bnSEK 3.1bn18.0%SEK 2.4bnSEK 2.9bn123%
2022SEK 21.6bnSEK 4.0bn18.3%SEK 2.8bnSEK 3.1bn110%
2023SEK 24.5bnSEK 4.8bn19.4%SEK 3.3bnSEK 4.5bn136%
2024SEK 26.1bnSEK 4.9bn18.7%SEK 3.3bnSEK 4.6bn140%
2025SEK 28.3bnSEK 5.2bn18.3%SEK 3.6bnSEK 5.1bn141%

On average, 137% of profit arrived as cash over the period.

Operating margin = operating profit divided by revenue. Cash conversion = cash flow from operations divided by net profit.

03 Who gets it

Earnings per share went from SEK 3.67 in 2020 to SEK 8.00 in 2025. Dividends took 26% of owner earnings over the last 5 years.

YearOwner earningsDividendsEPSDPSShares
2020SEK 2.5bnSEK 526mSEK 3.67SEK 1.16454m
2021SEK 2.6bnSEK 643mSEK 5.26SEK 1.42454m
2022SEK 2.7bnSEK 848mSEK 6.13SEK 1.87454m
2023SEK 4.0bnSEK 973mSEK 7.21SEK 2.14454m
2024SEK 3.8bnSEK 954mSEK 7.27SEK 2.10454m
2025SEK 4.2bnSEK 1.1bnSEK 8.00SEK 2.40454m

The share count has been roughly unchanged.

Owner earnings = cash flow from operations, minus investment in tangible and intangible assets, minus lease repayments. Share count is derived as net profit divided by earnings per share.

04 What protects it

Return on capital employed was 15% after tax in 2025. Net debt is SEK 9.1bn.

Return on capital employed has ranged from 14% to 16% after tax over the period.

Competitive advantages, our assessment

Niche positions●●●The subsidiaries are often the largest in a small market that a big competitor ignores.
Acquisition discipline●●●Buys profitable companies at sensible prices and keeps them, instead of chasing size.
Decentralisation●●○Each company keeps its management and its responsibility, with a low central cost.

Return on capital employed = operating profit after 20.6% Swedish tax, divided by equity plus net debt at year end.

05 What the price assumes

Today's price needs owner earnings to grow 13% a year for ten years. Revenue has grown 15% a year.

Required returnGrowth needed
8%10%
9%13%
10%15%

Market value SEK 127bn, enterprise value SEK 136bn. Base: owner earnings of SEK 4.0bn a year on average over the last three years, an owner earnings yield of 2.9%.

Reverse discounted cash flow. Enterprise value = market value plus net debt. The base is average owner earnings over the last three years. Required return 9%, 10 years, then 2.5% growth.

06 Is the money flowing in Members

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Where every number comes from
ItemAmountPeriodSource
RevenueSEK 28.3bn2025-12-31Annual report 2025 (ESEF)ifrs-full:RevenueFromContractsWithCustomers
Operating profitSEK 5.2bn2025-12-31Annual report 2025 (ESEF)ifrs-full:ProfitLossFromOperatingActivities
Net profit, ownersSEK 3.6bn2025-12-31Annual report 2025 (ESEF)ifrs-full:ProfitLossAttributableToOwnersOfParent
Cash flow from operationsSEK 5.1bn2025-12-31Annual report 2025 (ESEF)ifrs-full:CashFlowsFromUsedInOperatingActivities
EquitySEK 19.1bn2025-12-31Annual report 2025 (ESEF)ifrs-full:EquityAttributableToOwnersOfParent
CashSEK 1.9bn2025-12-31Annual report 2025 (ESEF)ifrs-full:CashAndCashEquivalents
Net debtSEK 12,321m2026-09-30Interim report January–September 2026, p. 3

The figures come from the company's annual reports in the machine-readable ESEF format, via filings.xbrl.org and the Swedish financial regulator. The latest filing wins, so restated comparatives replace the originals. Anything not tagged in ESEF is given with its source and page.

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General analysis and educational material, not personal investment advice and not a recommendation to buy or sell. The figures are mechanical and can be rebuilt from the company's public reports; the text is the author's judgement. Author's position in Lifco: not disclosed. Data to 2025-12-31, price as of 2026-10-23.