- Addtech AB (ADDHY) Q3 2026 Earnings Call Highlights: Strong EBITDA Growth and Strategic ...
Feb 5, 2026
This article first appeared on GuruFocus.
Net Sales: Increased by 1%, with 1% organic growth and a negative currency effect of 3%. EBITDA Growth: 9% increase, with an improved margin of 15.6% compared to 14.4% last year. Cash Flow: Strengthened from high levels, with operating cash flow increasing by 22%. Acquisitions: 4 acquisitions signed during the quarter, adding approximately EUR38 million in turnover. EBITDA Margin: Increased to 15.6% from 14.4% in the same quarter last year. Profit Margin: Improved, with a rolling 12-month margin as a base for long-term sustainability. Earnings Per Share: Increased by 16% in the quarter. Return on Capital Employed: Consistently strong at 22%. Leverage: Historically low at 1.2%. Profitable Working Capital: Increased to 78% from 74% in the same quarter last year.
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Release Date: February 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Addtech AB (ADDHY) reported a solid EBITDA growth of 9% with an improved margin of 15.6% compared to 14.4% in the same quarter last year. The company strengthened its cash flow from high levels and signed 4 acquisitions during the quarter, with an additional agreement to acquire a large company in Germany. The business area Electrification was a main driver of sales, showing strong demand and solid order intake in key segments. Addtech AB (ADDHY) maintained a consistently strong return on capital employed of 22%, demonstrating efficient use of capital. The company has a positive view of the acquisition market with a well-filled pipeline, expecting to continue acquisitions at a good pace in 2026.
Negative Points
Net sales increased by only 1%, with a negative currency effect of 3%, indicating challenges in achieving higher organic growth. The business areas Medical, Sawmill, and Defense experienced weaker development due to tough comparisons. Automation and Energy & Safety saw a sales drop year-over-year, with Automation still facing a challenging market situation. The market situation for Safety remained challenging, with large variations between segments and tough comparisons in demand and sales. Input costs increased in some companies within Electrification, hampering earnings growth and profitability.
Q & A Highlights
Q: How do you view the possibility of converting lower demand in the Energy segment into sales in the upcoming quarters? A: Niklas Stenberg, CEO: It usually takes a couple of quarters to convert orders into sales. The fourth quarter might still be affected by the lower demand seen in the second quarter, but the outlook is positive as we enter the next year.
Story Continues
Q: Can you break down the factors driving the strong margin performance in the Energy segment? A: Niklas Stenberg, CEO: The strong margin is primarily due to a favorable product mix and good leverage on certain projects. While pricing has played a role, the mix is the main contributor to the margin increase.
Q: What is the long-term growth potential for the newly formed Safety business area, and how do you view M&A opportunities in this space? A: Niklas Stenberg, CEO: We aim to double the earnings in five years, driven by steady organic growth and acquisitions. We have a strategy and a pipeline of acquisitions that support this goal, and we see good opportunities in the Safety sector.
Q: Regarding the recent acquisition of RAMME, can you provide details on its margin profile and how it fits into Addtech's strategy? A: Niklas Stenberg, CEO: RAMME operates with a strong margin of around 20%. It fits well into our Electrification strategy, offering opportunities for collaboration with existing companies in our portfolio.
Q: In the Process segment, what are the challenges related to elevated cost levels, and how long might these issues persist? A: Niklas Stenberg, CEO: The challenges are due to a product mix with lower aftermarket service and high costs in producing companies. We are balancing protecting margins with being ready for improved sentiment in project deliveries. The situation is not segment-specific but depends on larger customer investments.
Q: How do you view the potential for margin improvement in the Automation segment given the current restructuring measures? A: Niklas Stenberg, CEO: We haven't seen the full effect of the restructuring yet. Going into next year, we expect to see more impact. Future margin improvements will primarily be driven by volume increases.
Q: Can you comment on the impact of input costs on the Electrification segment and the outlook for Q4? A: Niklas Stenberg, CEO: It's difficult to predict, but we are actively managing higher input costs, such as those driven by the silver price. The situation remains volatile, and it's uncertain if it will improve in Q4.
Q: What is the outlook for the Industry segment's margins given the current order intake and backlog? A: Niklas Stenberg, CEO: We have offset the softness in the sawmill market with strong performance in special vehicles and acquisitions. However, for sustained high margins, we need the sawmill market to recover, which is uncertain at this point.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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- Addtech AB (publ.) (ADDHY) Q3 2026 Earnings Call Transcript
Feb 5, 2026 · seekingalpha.com
Addtech AB (publ.) (ADDHY) Q3 2026 Earnings Call Transcript
- Addtech (OM:ADDT B) Net Profit Margin Increase Reinforces Bullish Narratives Despite Premium Valuation
Oct 24, 2025
Addtech AB (publ.) (OM:ADDT B) reported net profit margins of 8.8%, up from 8.5% a year ago, with annual earnings growth of 12.8% and long-term earnings compounding at 21.1% per year over the past five years. Looking ahead, management forecasts project earnings to climb by about 12% per year and revenue to rise 6.2% annually, handily beating the Swedish market average of 3.6% revenue growth.
See our full analysis for Addtech AB (publ.).
Now, we will see how these headline figures compare to the narratives circulating among investors, highlighting where consensus holds firm and where expectations may need a rethink.
See what the community is saying about Addtech AB (publ.)OM:ADDT B Earnings & Revenue History as at Oct 2025
Profit Margins Outpace Peers Amid Cost Pressures
Net profit margin improved to 8.8%, now above last year's 8.5% and ahead of many industry peers. However, the pace of annual earnings growth has slowed to 12.8% from the five-year compound annual rate of 21.1%. According to the analysts' consensus view, Addtech’s sustained margin strength builds on strategic acquisitions and better product mix. They also highlight headwinds from elevated costs and market hesitancy that could limit further profitability gains.
Consensus notes recent acquisitions boosted revenue by SEK 1.4 billion and contributed to margins, yet increased costs for anticipated growth risk putting pressure on future results if market demand softens. Analysts agree demand in energy infrastructure remains a tailwind for profit growth. However, segments like Industrial Solutions are showing signs of slower sales and negative book-to-bill ratios, which could tighten margins and cash flow. The current trends in margins and efficiency measures directly reinforce the narrative that Addtech’s operational discipline is cushioning against economic swings. There is, however, growing caution about the potential for cost inflation to offset margin gains over the coming periods.
📊 Read the full Addtech AB (publ.) Consensus Narrative.
Acquisition-Driven Revenue Boost Faces Integration Risks
Acquisitions added SEK 1.4 billion in sales during the year, with a total of 11 purchases signaling aggressive investment in future growth. However, order backlog is relied upon to shield against short-term economic fluctuations. Consensus narrative points out the company’s strategy of integrating acquired businesses and expanding in energy infrastructure is creating strong future growth potential, alongside possible diversification benefits if integration execution stays on track.
Analysts highlight that expansion outside the Nordics and a focus on electrical infrastructure products are helping diversify revenue streams. However, future revenue still depends on converting the current high order backlog into realized sales. Delays in major new projects, especially in Process Technology, and uneven performance in sectors like building and installation add complexity and risk to meeting anticipated revenue targets.
Story Continues
Premium Valuation Raises Bar for Future Growth
Shares trade at a price-to-earnings ratio of 44.5x, a significant premium over the peer average of 36.2x and the industry average of 16.4x. The current share price of SEK 322.2 stands well above the DCF fair value of SEK 226.90 and below the consensus price target of SEK 364.75. Consensus narrative cautions that with such a high multiple, investors need conviction that revenue will rise to SEK 26.4 billion and earnings to SEK 2.8 billion by 2028, as the market has priced in sustained top-tier growth and profitability.
For the consensus target to be justified, Addtech’s projections call for earnings margins to tick up to 10.4%, and for revenue growth to keep pacing at 6.2% annually. Otherwise, the premium multiple could come under pressure. The current premium leaves limited cushion if future integration, cost, or demand issues knock management’s forecasts off course, amplifying both the upside and downside stakes for investors at these valuation levels.
Next Steps
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Addtech AB (publ.) on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.
Have another take on the numbers? Share your outlook and add your perspective to the story in just a few minutes: Do it your way.
A great starting point for your Addtech AB (publ.) research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
See What Else Is Out There
Despite strong revenue growth and margin expansion, Addtech’s lofty valuation leaves little room for error if integration risks or cost pressures hurt future performance.
If you’re looking for investments with stronger value upside and less price risk, consider reviewing these 876 undervalued stocks based on cash flows to discover companies trading at more attractive multiples today.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ADDT-B.ST.
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- Addtech AB (publ.) (ADDHY) Q2 2026 Earnings Call Transcript
Oct 23, 2025 · seekingalpha.com
Addtech AB (publ.) (OTCPK:ADDHY) Q2 2026 Earnings Call October 23, 2025 4:00 AM EDT Company Participants Niklas Stenberg - MD, President, CEO & Director Malin Enarson - Chief Financial Officer Conference Call Participants Zino Engdalen Ricciuti - Handelsbanken Capital Markets AB, Research Division Carl Ragnerstam - Nordea Markets, Research Division Karl Bokvist - ABG Sundal Collier Holding ASA, Research Division Johan Sundén - DNB Carnegie, Research Division Presentation Operator Welcome to the Addtech Q2 2025 Report Presentation.
- Addtech AB to Host Earnings Call
Oct 23, 2020
NEW YORK, NY / ACCESSWIRE / October 23, 2020/ Addtech AB (OTCMKTS:ADDHY) will be discussing their earnings results in their 2021 Second Quarter Earnings call to be held on October 23, 2020 at 2:00 PM Eastern Time.
To listen to the event live or access a replay of the call - visit
https://www.investornetwork.com/event/presentation/69303
To receive updates for this company you can register by emailing info@investornetwork.com or by clicking get investment info from the company's profile.
About Investor Network
Investor Network (IN) is a financial content community, serving millions of unique investors market information, earnings, commentary and news on what's trending. Dedicated to both the professional and the average traders, IN offers timely, trusted and relevant financial information for virtually every investor. IN is an Issuer Direct brand, to learn more or for the latest financial news and market information, visit www.investornetwork.com. Follow us on Twitter @investornetwork.
SOURCE: Investor Network
View source version on accesswire.com:
https://www.accesswire.com/611876/Addtech-AB-to-Host-Earnings-Call
- Addtech AB to Host Earnings Call
Oct 23, 2020
NEW YORK, NY / ACCESSWIRE / October 23, 2020/ Addtech AB (OTCMKTS:ADDHY) will be discussing their earnings results in their 2021 Second Quarter Earnings call to be held on October 23, 2020 at 2:00 PM Eastern Time.
To listen to the event live or access a replay of the call - visit
https://www.investornetwork.com/event/presentation/69303
To receive updates for this company you can register by emailing info@investornetwork.com or by clicking get investment info from the company's profile.
About Investor Network
Investor Network (IN) is a financial content community, serving millions of unique investors market information, earnings, commentary and news on what's trending. Dedicated to both the professional and the average traders, IN offers timely, trusted and relevant financial information for virtually every investor. IN is an Issuer Direct brand, to learn more or for the latest financial news and market information, visit www.investornetwork.com. Follow us on Twitter @investornetwork.
SOURCE: Investor Network
View source version on accesswire.com:
https://www.accesswire.com/611876/Addtech-AB-to-Host-Earnings-Call
