This article first appeared on GuruFocus .
Release Date: November 06, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Schouw & Co AS ( FRA:5RF ) delivered an all-time high quarter with revenue up 16% to DKK 10.6 billion and EBITDA up 37% to nearly DKK 1.2 billion, with an 11.3% margin.
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Profit before tax increased 69% to DKK 881 million, and operating cash flow rose 8% to DKK 966 million, while net interest-bearing debt was reduced 46% to DKK 2.6 billion, bringing leverage down to 0.8x EBITDA.
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Biomar achieved record-high volumes (up 5% to 488,000 tons) and EBITDA growth of 44% to DKK 736 million, with return on invested capital (ex-goodwill) at 34.3%.
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GPV showed strong order momentum with a book-to-bill ratio of 1.92, revenue up 9% to DKK 2.3 billion, and EBITDA up 26% to DKK 217 million, with margin expanding from 8% to 9.3%.
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Full-year guidance was raised, with revenue now expected at DKK 36.2-38.1 billion and EBITDA at DKK 3.37-3.52 billion, driven by broad-based improvements and solid order books across the portfolio.
Negative Points
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Biomar's shrimp segment was impacted by high raw material and energy costs, especially in Ecuador, along with bad debt and ramp-up costs in Costa Rica and Vietnam totaling around DKK 20 million.
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GPV is experiencing constraints from the supply of selected components, which could pose risks to delivery schedules and require increased inventory build-up, potentially affecting working capital.
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Boll Automotive's revenue was flat at DKK 480 million due to the deliberate phase-out of unprofitable revenue, and guidance for revenue was narrowed towards the lower end.
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Fibertech Personal Care faced volatile raw material markets, with revenue up 21% but EBITDA maintained at DKK 53 million, as Asian overcapacity and pricing pressure continued.
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Spectra, the newest portfolio company, reported negative EBITDA of DKK 10 million for the month due to acquisition accounting and non-recurring PPA items, with a modest full-year EBITDA outlook around zero after acquisition-related costs.
Q & A Highlights
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Q: After a broad-based guidance upgrade in Q2 and further upgrades in Q3, is this more a reflection of conservatism on your side, or are you surprised by very strong demand dynamics? A: CEO Jens Bjerg Srensen said the company always guides to what it sees and believes in. He said management was not entirely surprised but noted that things are running very well, with the effects of efficiency improvements, a strong market position and traction in attractive new segments such as data centers and defense. He added that the quarter shows the platform is perhaps even stronger than previously thought.
Q: Can you update on GPV's ability to source components and the lead times involved? A: The CEO said longer lead times are always a concern, and GPV has set up a special task force and decided to build up more inventory, which will raise networking capital. He said GPV has many years of experience in this area and is doing quite well so far, but has put significant resources into it because it is so important.
Q: With limited visibility but a rising book-to-bill, does that mean you get the orders but are not 100% sure when you can deliver, and could you face penalties for delays? A: The CEO acknowledged that some customers may be over-ordering out of fear of not getting supply, but said Schouw & Co. believes in the very strong order book and has not had any supply or delivery constraints so far. He noted the company has a purchase price variance system that passes component costs on to customers, and said there are no problems so far, though management remains concerned.
Q: If component scarcity intensifies, could GPV's EBITDA margin take a hit, and how do you mitigate that? A: The CEO said that is not expected, citing strong pass-on mechanisms. He said the margin uplift comes from many factors, mainly internal productivity, factory closures and footprint moves, and described it as a very solid improvement. He said he feels very comfortable with the margin trajectory toward the 10% target, though the company must keep a close eye on component price increases.
Q: On GPV's strong book-to-bill, how much reflects new customer wins versus existing customers, and when will the order intake convert into revenue? A: The CEO said a lot of the order intake will materialize in 2027, with a very solid backlog going into 2027 and some orders extending into 2028. He said new customers are coming in, including the biggest order ever for GPV from a single customer in the data center segment, while larger existing customers are also improving order levels across the board, helped by GPV's strong global footprint.
Q: On B&O Automotive, Q3 growth declined slightly and Q4 guidance implies muted growth. Are you preparing for further top-line reductions, and how does that fit with the efficiency program? A: The CEO said the company is not preparing for further top-line reductions. It is sharpening its go-to-market strategy with a new sales organization under the "One B&O" concept and expects to take market share amid market turmoil. He said the "refined for future" plan should drive a significant profit uplift in 2027.
Q: On Fibertex Nonwovens, can you strip out raw material and FX effects and elaborate on underlying earnings and volume growth? A: The CEO said the U.S. facilities that had caused issues are now delivering profit, producing a huge profit uplift in the U.S. He cited a much better product mix as the company moves away from low-margin filler volume, significantly improved U.S. efficiency and a general volume uplift, all reflecting internal work.
Q: You have nearly spent the amount planned under the current buyback, which runs to year-end, but have not announced a new or increased program. What is the rationale? A: CIO Kasper Okkels said the amount allocated for share buybacks under the current program is more or less executed and no decision has yet been made on further allocation. He reiterated that share buybacks are a priority, as stated at the Capital Markets Day, and that the company believes it is good to buy back shares at current levels.
Q: On HydraSpecMa's new China facility, how quickly do you expect capacity utilization to ramp up? A: The CEO said the business is project-oriented and the facility was also built for future growth. Activity is improving a lot, and footprint decisions will move production from other facilities to China. He said the company is working hard to get as much volume as possible into the facility because of its efficiency and good margins, while retaining room for future growth.
Q: Do you see inventory buildup at customers in GPV and HydraSpecMa due to component shortage or cost inflation concerns, which could signal a later reversal? A: The CEO said Schouw & Co. has not built up inventory, though it is securing supply for the order book and may build inventory in a few special components if available at attractive prices. He said the company sees no inventory buildup at customers, orders are solid and expected to be delivered, and many relate to projects already sold and in the pipeline.
Q: On personal care, you said pricing mechanisms have improved. Is there still some impact left from implemented price increases, i.e., further margin upside? A: The CEO said the small guidance increase includes a minor effect from this. He said the company moved from quarterly to monthly pass-through mechanisms during the volatile period and is now slowly returning to quarterly pass-through, and he does not really see any further impact from this.
Q: With GPV's book-to-bill near two times, does that imply impressive growth for 2027, and can you compare with the level 12 months ago? A: The CEO said there is nothing unusual in GPV having a big order book because orders take a long time to develop, with a lot also going into 2028. He said there is good comfort for 2027 and growth is expected, though the order book is not solely a 2027 indicator. He did not have the prior-year book-to-bill figure at hand and offered to follow up precisely.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
