HEXPOL walked into Q3 2026 earnings with a stock that had drifted lower in recent weeks and closed at SEK93.5 today, despite a modest gain over the past quarter. The report itself told a different story. Sales reached SEK5,300m with strong organic growth, while adjusted EBIT landed at SEK723m and kept the earnings engine solidly profitable, even as the adjusted EBIT margin eased to 13.6%.
Investors are seeing a share price that feels tired, while a plastics and rubber compounding group continues to generate healthy cash and faces only a measured squeeze on profitability. That gap between price fatigue and resilient fundamentals is the key focus for HEXPOL today.
Like the cash generation and scale HEXPOL is putting up but uneasy about a softer margin profile and a stock that looks tired on the screen? Check out the list of solid balance sheet and fundamentals stocks (205 results) as a benchmark list of companies that pair durable fundamentals with more resilient pricing power.
Q3 2026 Earnings Summary
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Revenue (Q3 2026 vs Q3 2025):SEK5,300m vs. SEK4,692m (up 13.0%)
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Net Income (Q3 2026 vs Q3 2025):SEK448m vs. SEK465m (down 3.7%)
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Basic EPS (Q3 2026 vs Q3 2025):SEK1.30 vs. SEK1.35 (down 3.7%)
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Adjusted EBIT Margin (Q3 2026 vs Q3 2025):13.6% vs. 14.7% (compressed by 1.1 percentage points)
Prefer clean charts instead of another wall of earnings tables and margin line items? See HEXPOL's full visual breakdown, including how the latest profit picture fits into the broader business, in the company report for HEXPOL.
HEXPOL Bull Case: Execution Milestones On The Table
For the bullish story on HEXPOL, the question is whether execution on mix, margins and thermoplastics scale is actually happening in the numbers yet.
"The main thing that has to go right is that HEXPOL successfully converts more captive in house compounding volumes, executes on thermoplastic and rubber growth projects and keeps EBIT margins within its new 14 to 16% ambition, while funding this through disciplined cash generation."
Q3 shows pieces clicking into place. Rubber Compounding volumes in North America grew with share gains and captive conversions, while Thermoplastic Compounding delivered 19% organic sales growth and higher profitability. Group adjusted EBIT margin at 13.6% sat just below the 14% floor, so mix and pricing progress is partly offset by higher OpEx. Strong operating cash flow of SEK669m and net debt to EBITDA of about 1.0 indicate the balance sheet is funding this build out as intended.
Not everyone reads the same price the same way. → See the higher figure this Narrative lands on, and how it gets there .
HEXPOL Bear Case: Margin Ambitions Still On Trial
Bearish investors worry that HEXPOL's growth plan leans heavily on deals and cost programs that may not fully land in earnings.
"Thermoplastic Compounding is being pushed as a growth engine, with SEK 4.6b in 2025 sales and plans to move into engineered and high performance polymers within a USD 75b addressable market. However, margins are currently below Rubber and depend on unproven synergies from future acquisitions that may fall short of what is needed to support group EBIT margins in the 14 to 16 percent range."
Q3 shows that concern is only partly addressed. Thermoplastics lifted its profitability, yet group adjusted EBIT margin at 13.6 percent still sat below the 14 to 16 percent ambition, held back by higher OpEx and lower margin rubber contracts. Integration benefits from Vipa and Symplast are not in the numbers yet, so the burden of proof on acquisition synergies remains.
Hunt For Mispriced Earnings Power
HEXPol just reported a steady quarter while its share price stayed flat. The real opportunity is spotting stocks that may be undervalued before the market adjusts.
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Company 1 - 22% below our estimate - converts semiconductor equipment orders into higher margin service contracts under tariff and acquisition cost pressure.
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Company 2 - 49% below our estimate - scales zinc output by integrating a newly acquired producer into existing mines and smelters.
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Company 3 - 32% below our estimate - grows fee based earnings as more affiliated managers join its platform and assets under management expand.
That is three of the list. See every one of the 196 undervalued companies on it →
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 HPOL-B.ST .
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