AQ Group stock closed at SEK251.6 on Thursday, capping a 90-day gain of about 23% as investors focused on the electrification story. The latest Q3 2026 earnings release added fresh fuel, with net sales of SEK2.5b and operating profit of SEK259m in the quarter.
In the short term, the attention is on that strong headline performance and demand tied to data centers and power-grid projects. The bigger question is whether a trailing P/E of 32.8x and a net profit margin of 7.5% leave enough potential for long-term holders if growth normalizes.
Love AQ Group's Q3 momentum and electrification exposure but uneasy about paying a 32.8x P/E for a 7.5% net margin profile? Screen for companies that pair strong demand stories with sturdier financial buffers in our list of solid balance sheet and fundamentals stocks (203 results) .
Q3 2026 Earnings Summary
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Revenue (TTM to Q3 2026 vs. TTM to Q3 2025):SEK 9,371m vs. SEK 8,874m (up about 6%)
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Net Income from Continuing Operations (TTM to Q3 2026 vs. TTM to Q3 2025):SEK 703m vs. SEK 664m (up about 6%)
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Basic EPS (TTM to Q3 2026 vs. TTM to Q3 2025):SEK 7.66 vs. SEK 7.24 (up about 6%)
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Net Profit Margin (TTM to Q3 2026 vs. TTM to Q3 2025):7.5% vs. 7.5% (stable year on year)
Prefer clean charts instead of scrolling through another wall of numbers? See AQ Group's full financial picture, with a focus on its recent earnings quality and profitability trends, in the visual company report for AQ Group.
AQ Group electrification story clears early hurdles
AQ Group is pitching electrification and rail as long-term growth engines. The Q3 print gives some evidence to test that story.
"Recent contract wins from major customers in electrification and rail industries, such as delivering wire harnesses for Volvo and components for Austrian trains, can increase future revenue streams."
Reported net sales of SEK 2.5b, strong demand in inductive components tied to data centers and power-grid projects, and high utilization in the U.S. and China all point to these wins translating into real volume. Integration progress at mdexx and added capacity from Norlake further support the idea that this electrification pipeline is being converted into production rather than sitting only in the order book.
Execution risks keep AQ Group margin story in check
The bear case questions whether AQ Group can fix weaker sites fast enough to support the margin ambitions baked into the story.
"The acquisitions have improved performance, but there is potential risk in the integration process, particularly with mdexx, which is currently losing money, potentially affecting net margins and earnings."
Management reports mdexx now broadly in line with group profitability, so that specific drag looks reduced. Yet Time 24 output is below expectations, on-time delivery slipped to 91%, and some wire-harness plants remain underutilized. Inventory turns at 2.9 versus a 3.5 target also show working-capital strain. Margin pressure from product mix, not pricing, suggests the integration and efficiency story is still incomplete rather than fully de-risked.
Not everyone reads the same price the same way. → See the lower figure this Narrative lands on, and how it gets there .
Hunt For Mispriced Growth Stories
AQ Group illustrates how a strong operational story can still leave investors debating valuation and execution risk. The real opportunity is finding stocks that could be undervalued before the market corrects them.
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Company 1 - 25% below our estimate - pivots from low-margin shipbuilding to higher-margin underwater technology and digital systems for defense contracts.
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Company 2 - 19% below our estimate - wins long-lead cable projects tied to grid upgrades and energy transition work that keep order books full.
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Company 3 - 43% below our estimate - sells hardware-agnostic oncology software as hospitals adopt recurring AI-supported planning and care platforms.
Those are three of them. See the full list of 195 companies trading below our fair value estimates →
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 AQ.ST .
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