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Danish-based GPV, the second-largest European-headquartered EMS company, reported improved profitability in the first quarter of 2026 despite continued market uncertainty and supply chain challenges. Sales declined slightly year on year, while earnings improved as the structural measures implemented during 2025 began to show results. GPV maintains its full-year guidance for 2026.
GPV, owned by Nasdaq Copenhagen-listed Danish industrial conglomerate Schouw & Co., reported Q1 2026 sales of DKK 2,140 million compared with DKK 2,207 million in Q1 2025, a year-on-year decrease of 3%. EBITDA increased by 12% to DKK 160 million from DKK 143 million in the same period last year.
“The market is showing early signs of moving in the right direction, and we are seeing encouraging developments in some regions. At the same time, the structural measures we implemented during 2025 are now beginning to show positive results in earnings. We have improved profitability while continuing to strengthen our competitiveness,” says Bo Lybæk, CEO of GPV. He adds:
“However, we are facing increasing challenges with shortages of certain materials like memory chips and now also with rising energy prices and logistics costs as a result of the situation in the Middle East.”
Working capital amounted to DKK 2,171 million on 31 March 2026, a decrease of 13% compared with DKK 2,502 million on 31 March 2025. ROIC excluding goodwill improved to 10.0% from 9.2% at year-end 2025.
Strong order intake and improving commercial momentum
Demand generally remained steady during Q1 2026, supplemented by a strong order intake and a healthy book-to-bill ratio. GPV continues to see a solid sales pipeline with several attractive projects aligned with its strategic priorities.
The company’s structured pipeline management approach remains focused on expanding co-operation with existing customers while winning new customers and product programmes. Several projects secured during 2025 and early 2026 are expected to be implemented and ramped up during 2027.
GPV also continues to see attractive long-term opportunities in Mexico, where commercial activities are progressing and capacity is being prepared for future growth. Most production already complies with USMCA tariff rules, while the new US partnership supports local-content requirements.
Benefits from footprint optimization
During 2025, GPV completed several initiatives across its global manufacturing footprint, including site consolidations. These initiatives are now contributing positively through a lower cost base, improved efficiency and better utilisation of production capacity.
GPV continues to invest in operational improvements, including the implementation of a group-wide ERP platform to enhance transparency, scalability and efficiency across the organisation. The first pilot went successfully live during Q1 2026.
“We made a number of important decisions during 2025 to adapt our footprint and cost structure to market realities. These decisions are now supporting our performance, and we still see additional opportunities for improving utilisation and earnings,” says Bo Lybæk.
While the overall market picture points towards normalisation, conditions remain volatile. Several customer segments are still experiencing pricing pressure, and uncertainty related to geopolitical developments and energy prices remains elevated.
At the same time, increasing challenges have emerged in the supply of memory chips and certain other electronics materials. Strong demand driven by AI and data-centre investments has tightened availability of materials, resulting in longer lead times and rising prices.
GPV is managing the situation through close dialogue with customers and suppliers, dedicated task forces and increased planning visibility. Customers are encouraged to extend forecast horizons to secure supply continuity and stable execution.
“We have learned a great deal from the supply chain crises in 2021-2023. Based on this experience, we are better prepared to handle the situation, we work closely with our customers, and we react fast. In a volatile supply environment, this will be crucial to supply our customers,” says Bo Lybæk.
Unchanged outlook for 2026
Although visibility remains blurry, GPV still expects demand to remain steady during 2026, while market conditions are expected to remain volatile.
For 2026, GPV maintains its guidance of sales in the range of DKK 8.5–9.0 billion and EBITDA in the range of DKK 690–750 million. The projected earnings improvement is supported by the structural measures implemented during the past years as well as a continued focus on cost control and operational efficiency.
“We would prefer more stability in the market, but we are operating in the world as it is from a stronger position than before. We have a solid order book, an attractive pipeline and a stronger business than a year ago. If external conditions remain reasonably stable, we expect to deliver a solid full-year result,” concludes Bo Lybæk.
