SATS went into its Q3 2026 report on a quiet winning streak. The share price closed at NOK44.15 on 27 October, with 7-day and 90-day returns both positive but unspectacular. Then the numbers landed. Earnings per share for the quarter came in at NOK0.69 on revenue of NOK1,324m, while trailing 12 month profit margins stayed close to 10% and leverage held at 1.1x.
The story today is not about survival. It is about a market that has been slow to price a cleaner earnings profile and a steadier balance sheet into SATS. This has come even as the business has focused more on profitability per member rather than purely on raw volume.
Like the cleaner earnings profile at Sats but want more balance sheet resilience in your portfolio? Compare it with companies in our list of solid balance sheet and fundamentals stocks (207 results)
Q3 2026 Earnings Summary
-
Revenue (Q3 2026 vs Q3 2025):NOK 1,324m vs. NOK 1,293m (up about 2.4%)
-
Net Income, Excl. Extra Items (Q3 2026 vs Q3 2025):NOK 133m vs. NOK 98m (up about 35.7%)
-
Basic EPS, Earnings Per Share (Q3 2026 vs Q3 2025):NOK 0.69 vs. NOK 0.48 (up about 42.3%)
-
Trailing 12 Month Net Income, Excl. Extra Items (Q3 2026 vs Q3 2025):NOK 556m vs. NOK 429m (up about 29.7%)
Sats is boosting profits and widening its leverage target. Ask Charlie what Sats' wider leverage range signals for future payouts .
SATS Bull Case: Profit Quality Milestones On Show
The upbeat view on SATS depends on richer memberships doing more of the heavy lifting than raw headcount. That hinges on a clear operating ambition.
"Growing member activity, particularly in group training, supports higher average revenue per member and can contribute to sustained revenue growth and scale driven earnings."
Q3 reflects some of that. Visits per member rose 2% and group training participation climbed about 6%, while currency adjusted revenue increased 7% and EBITDA advanced 25%, with margin moving from 15% to 18%. Profitability is scaling faster than sales, and net leverage staying at 1.1x supports the cleaner earnings story.
One Narrative has put a figure on that disagreement. → See the Narrative with its higher Fair Value, assumptions and all .
SATS Bear Case: Volume Drags Behind Earnings Story
The cautious view hinges on whether SATS can turn new capacity into real earnings power or if expansion just ties up capital.
"Although Sats has signed 30 new club locations through 2028, the time needed to ramp greenfield sites and a current net decline of three clubs may slow the pace at which new capacity contributes meaningfully to revenue and earnings."
Q3 confirms the tension. Earnings quality looks cleaner with an 18% EBITDA margin and steady 1.1x leverage. However, management again leaned on ARPM, not membership growth, to move the needle. Eight closures year to date and only 18 committed openings so far underline that the footprint remains a drag rather than an earnings accelerant in this quarter.
Hunt For Mispriced Earnings Power
Sats just showed how cleaner earnings and steady leverage may still leave the equity story unchanged. The real opportunity is finding stocks that could be undervalued before the market corrects them.
-
Company 1 - 19% below our estimate - leans into overseas teahouse expansion while balancing same store demand and franchisee economics.
-
Company 2 - 23% below our estimate - shifts from low margin shipbuilding toward higher margin underwater technology and digital systems integration for defense clients.
-
Company 3 - 30% below our estimate - expands an IT infrastructure platform by absorbing acquisitions that open AI focused and international enterprise contracts.
Those are three of them. See all 195 potentially undervalued companies →
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 SATS.OL .
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
