This article first appeared on GuruFocus .
Release Date: April 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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NCAB Group AB ( LTS:0AAQ ) reported a strong positive growth in topline and EBITA, with order intake up 27% in Swedish kroner and 43% in US dollars.
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The company has a positive book-to-bill ratio of 1.2, indicating strong demand and future revenue potential.
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NCAB Group AB ( LTS:0AAQ ) has seen significant growth in North America, with a 71% increase in order intake and a 100% growth in US dollars.
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The company is leveraging its strong supply chain and factory management to navigate supply chain bottlenecks effectively.
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NCAB Group AB ( LTS:0AAQ ) has a robust M&A strategy, with recent acquisitions contributing positively to the company's growth.
Negative Points
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The global market for printed circuit boards is experiencing supply chain bottlenecks, which could impact NCAB Group AB ( LTS:0AAQ )'s operations.
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There is a significant FX headwind impacting the company's financials, with a negative impact of 27 million SEC in the quarter.
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Sales towards the automotive industry remain muted, affecting overall growth in certain regions.
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The company is facing increasing market prices, which could affect margins if not managed properly.
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Lead times have extended, potentially delaying the conversion of order intake into revenue.
Q & A Highlights
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Q: Can you provide insights on the impact of raw material price increases on order intake and expectations for Q2? A: (CEO, Peter Crook) We observed a 10% price increase in Q1, leading to some pre-buying in Q4. While the full impact isn't reflected in Q1 order intake, we expect further price increases in Q2. These will gradually show in net sales, primarily in the second half of the year.
Q: Regarding the $20 million North America order, how is it distributed between 2026 and 2027? A: (CEO, Peter Crook) The order comprises multiple projects, with one extending over two years. Approximately $4 million of this order will be delivered in 2027.
Q: Was there any pre-buying effect in Q1 similar to Q4? A: (CEO, Peter Crook) While we foresee continued price increases leading to some pre-buying, the net effect in Q1 is minimal. The pre-buying in Q4 was largely offset by further pre-buying in Q1.
Q: Can you elaborate on the data center projects and your involvement? A: (CEO, Peter Crook) We are not directly involved in data center applications but support auxiliary systems like power regulation. We've developed this business with North American customers since 2025 and aim to continue growing in this segment.
Q: How are lead times affecting order conversion and revenue expectations? A: (CEO, Peter Crook) Lead times have extended from one to two quarters. Current Q1 order intake won't fully translate into Q2 revenue due to these delays and price-related order intake growth.
Q: What is the impact of the CMMC 2.0 certification on your business? A: (CEO, Peter Crook) The CMMC 2.0 certification strengthens our position in the U.S. defense market, allowing us to support U.S. defense projects. This accreditation is crucial for maintaining credibility and growing in this sector.
Q: Are customers shifting from direct factory purchases to working with NCAB? A: (CEO, Peter Crook) Factories are prioritizing larger customers due to raw material constraints, leading smaller customers to seek our support. Our strong factory relationships and ability to secure materials make us an attractive option.
Q: How sustainable are the margins in the East market given current volumes? A: (CEO, Peter Crook) Despite variations in project mix, we have consistently maintained margins around 15% or higher in Asia. We expect to continue this performance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
