Bilia entered this Q3 2026 report with a reputation as a low P/E car retailer that has quietly rebuilt earnings momentum while the share price trended lower, down about 6% over the past week and 9% over three months to SEK136.4 before the release. The fresh numbers show Q3 operating profit of SEK380m with a 3.8% operating margin and service operations again doing the heavy lifting. That mix of muted recent share performance and solid profitability keeps the spotlight on whether the market is still underpricing the strength of Bilia's service engine.
Love Bilia's steady service profits but concerned the share price is drifting even as earnings hold up? Benchmark it against our list of solid balance sheet and fundamentals stocks (204 results) .
Q3 2026 Earnings Summary
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Revenue (Q3 2026 vs. Q3 2025):SEK 9,961m vs. SEK 9,717m (change of about 2.5%)
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Net Income (Excl. Extra Items, Q3 2026 vs. Q3 2025):SEK 185m vs. SEK 191m (decline of about 3.1%)
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Basic EPS (Earnings Per Share, Q3 2026 vs. Q3 2025):SEK 2.02 vs. SEK 2.06 (decline of about 2.3%)
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Operating Margin (Q3 2026):3.8% with service operations contributing about 73% of group operating profit
Service delivered a record Q3 and drives most of Bilia's profit. Ask Charlie what makes Bilia's service margins so strong .
Bilia service engine: margin target under the microscope
For the bullish story, you are really testing whether Bilia's service engine is scaling the way the narrative promises.
"Bilia is extending its focus on the older car fleet and fully electric models in workshops, with Service already contributing 70% to 79% of group profit and management now targeting a 14% Service margin, which points to Service mix and pricing as a continuing support for earnings and net margins."
Q3 backs up that ambition. Service delivered record Q3 operating profit of SEK 293m, a 12% margin, with Sweden already at 14.2%. Service contributed 73% of group operating profit, so mix is tracking the story, even if the group wide 14% Service margin target is not yet fully in the bag.
Bilia risks: execution, used EVs and market fragility
The bear side questions whether execution and market strain could blunt that Service and efficiency story.
"The main thing that has to go right is that Bilia continues to convert its strong cash generation and low leverage into disciplined capital allocation, including delivering the planned efficiency savings while managing used car margin pressure and car market volatility in the Nordics."
Q3 Service strength and a 3.8% group operating margin suggest cost measures are feeding through, and net debt to EBITDA of 1.2x indicates balance sheet headroom. At the same time, weaker used car demand and softer Norwegian margins show that used EV and market volatility risks are still live, not hypothetical.
The price and this Narrative do not agree. → Uncover what this Narrative says Bilia is actually worth .
Hunt For Mispriced Cash Engines
Bilia reported a solid quarter while the share price reaction stayed hesitant. The real opportunity is finding stocks that might be undervalued before valuations adjust.
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Company 1 - 32% below our estimate - builds a multi affiliate platform that channels third party funds and distribution reach into fee based earnings.
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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 BILI-A.ST .
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