Instalco came into its Q3 2026 report with the stock at SEK42.5, after a steady three month climb, and a reputation as a roll up installer that lives or dies on project execution and acquisition discipline. The headline this quarter is profit quality. Earnings per share reached SEK0.75 on revenue of SEK3,548m, supported by a strong order backlog and firmer project margins. However, cash conversion and leverage remained pressure points that the market now has to weigh against the sharp improvement in profitability.
Love Instalco's improving profitability but concerned about the weak cash conversion and the leverage risk profile around it? Compare that mix of earnings strength and balance sheet resilience 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):SEK3,548m vs. SEK3,027m (up about 17%)
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Net Income, Excl. Extra Items (Q3 2026 vs Q3 2025):SEK201m vs. SEK75m (up about 168%)
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Basic EPS (Q3 2026 vs Q3 2025):SEK0.75 vs. SEK0.28 (up about 168%)
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EBITA Margin (Q3 2026 vs Q2 2026):7.2% vs. 7.1% (slight margin improvement)
Prefer clear, visual charts instead of another dense wall of earnings commentary and raw figures? View Instalco's full financial picture, including how profitability trends relate to the rest of the business, inside our company report for Instalco.
Evaluating Instalco's Margin And Backlog Milestones
For the bullish view on Instalco to hold, earnings need to reflect a shift toward richer work and better discipline, not just a bigger footprint.
"The strong build in the order backlog to almost SEK 11b, with organic growth just under 15%, gives Instalco more opportunity to skew future work towards projects aligned with Instalco 2.0 criteria."
The latest quarter largely supports that idea. Backlog reached SEK 11.7b with organic growth a little above mid teens, while EBITA margin edged up to 7.2% and Finland/Germany sat near 10.4%. Fabri contributed positively and Sweden delivered over 15% organic growth with firmer project margins, showing the higher margin mix is starting to show in reported profitability.
One Narrative has put a figure on that disagreement. → See the Narrative with its higher Fair Value, assumptions and all .
Instalco Bear Case: Strong Margins, Cash Discipline Misses
Bearish investors worry that Instalco 2.0 will not keep margins and balance sheet strength moving together.
"The main thing that has to go right is that Instalco 2.0 disciplines the growing share of service and renovation work, and that the expansion with Fabri in Germany continues to support higher margins, strong cash conversion around 100%, and controlled leverage close to the 2.5x target."
Q3 shows mixed evidence. EBITA margin at 7.2% and strong organic growth argue that project discipline is working. Yet cash conversion on a rolling basis at 74% and net debt to EBITDA around 3x both miss the stated ambitions, so the concern about stretched financial flexibility is still visible in the numbers.
Hunt Beyond Instalco's Headline Quarter
Instalco's solid profitability shift raises new questions on execution and the balance sheet. The real opportunity is finding stocks that could be undervalued before the market corrects them.
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Three companies from the same screener. Open the full list of 192 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 INSTAL.ST .
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