GPV improves profitability in Q1 despite falling sales
Danish EMS provider GPV reported improved earnings in the first quarter of 2026, as structural measures implemented during 2025 began to take effect — even as sales declined and supply chain pressures mounted.
Sales for the January–March period reached DKK 2,140 million, down 3% from DKK 2,207 million in Q1 2025. EBITDA increased 12% to DKK 160 million from DKK 143 million in the same period last year.
"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," CEO Bo Lybæk says in a press release.
The earnings improvement reflects a lower cost base, better capacity utilisation and improved efficiency following site consolidations completed during 2025. A group-wide ERP platform is also being rolled out to improve transparency and scalability across the organisation, with the first pilot going live during Q1.
Memory shortages adding new pressure
Despite the improved profitability picture, GPV flags growing supply chain challenges. Tightening availability of memory chips – driven by AI and data centre demand – is resulting in longer lead times and rising prices. Rising energy costs and logistics expenses linked to the situation in the Middle East are adding further pressure.
"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," Lybæk says.
GPV is managing the situation through dedicated task forces, closer dialogue with customers and suppliers, and extended forecast horizons to secure supply continuity.
"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," says Lybæk.
Order intake and pipeline remain solid
Demand was broadly steady during the quarter, supported by a strong order intake and a healthy book-to-bill ratio. Several projects secured during 2025 and early 2026 are expected to ramp up during 2027. GPV also continues to develop its presence in Mexico, where most production already complies with USMCA tariff rules and capacity is being prepared for future growth.
GPV maintains its full-year guidance: sales of DKK 8.5–9.0 billion and EBITDA of DKK 690–750 million.
"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 Lybæk.
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