Sweden's Engcon Q4 profit falls 11% on currency headwinds

Engcon AB

17/02/2026 07:09

Overview

Sweden tiltrotator supplier's Q4 net sales grew 27% yr/yr

Q4 profit decreased 11% due to currency effects and higher admin costs

Operating margin impacted by strengthened SEK and geopolitical uncertainties

Outlook

Engcon expects cash flow to improve in coming quarters due to inventory build-up

Company focuses on strategic priorities for continued profitable growth

Engcon sees demand developing positively despite geopolitical uncertainty

Result Drivers

STRONG ORGANIC GROWTH - Engcon reported a 34% organic increase in net sales, driven by strong performance across all regions, particularly in Sweden.

CURRENCY IMPACT - The strengthened SEK and negative currency effects burdened the gross margin, impacting profitability.

INVENTORY BUILD-UP - Higher inventory levels were maintained to support expected sales growth in the spring, affecting cash flow.

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
SEK 498 mln
Q4 Net Income
SEK 48 mln
Q4 Operating Margin
14.50%
Q4 Operating Profit
SEK 72 mln
Q4 Orders
SEK 539 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

Wall Street's median 12-month price target for Engcon AB is SEK99.00, about 16.5% above its February 16 closing price of SEK85.00

The stock recently traded at 54 times the next 12-month earnings vs. a P/E of 51 three months ago

Press Release: ID:nMFN9TD9yN

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)