This article first appeared on GuruFocus .
Release Date: February 13, 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 ( STU:XB1 ) reported a strong order intake growth of 20% in Q4, with a 33% organic growth in US dollars.
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The company saw a positive development across all segments, particularly in defense, med tech, and power energy industries.
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NCAB Group AB ( STU:XB1 ) successfully managed to improve its EBITDA to 98.6 million SEK, with an EBITDA margin increase to 10.9% from 8% last year.
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The company has a diversified supply base, expanding sourcing in Asia outside China, which helps mitigate geopolitical risks.
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NCAB Group AB ( STU:XB1 ) continues to pursue M&A activities, with successful acquisitions like Munta Technique, enhancing its market position.
Negative Points
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The company faced a strong FX headwind, negatively impacting the quarter by 23 million SEK.
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Operating cash flow was impacted by a temporary increase in working capital due to ERP system implementation.
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The automotive segment remains weak, affecting regions like the UK and Italy.
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EBITDA in North America decreased due to timing of costs and adjustments to higher order intake pace.
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The company experienced a decrease in return on equity to 14.3% from 18.3% last year, partly due to FX impacts.
Q & A Highlights
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Q: Starting with organic order momentum, are there any price effects showing in Q4 orders, and what magnitude of price increase can we expect at the beginning of 2026? A: We see very minor impact of pricing on Q4. Prices are really coming into effect at the beginning of 2026. The average price increase is estimated to be around 10%. We expect some positive impact of pricing in Q4, but the revenue impact will be more pronounced in the second half of 2026.
Q: Are there any margin impacts from higher PCB prices, and can you increase your prices more than the input prices? A: Historically, we've managed to maintain gross margins during price increases. We see this as an opportunity to gain market share rather than driving margins further up. We aim to manage and keep margins stable while growing.
Q: How much longer lead time can we expect, and could order conversion move below 100% in Q1? A: Historically, there was about a quarter delay from order to revenue. Now, lead times have increased to 5-6 months. Excess orders from Q4 will spread over several quarters in 2026.
Q: Regarding order growth intake, was the pre-buying driven by a few customers, and how much is from existing versus new customers? A: Pre-ordering is seen across many markets. Basic order intake growth is a combination of segment growth and inventory normalization. We see a clear progression in order intake growth, with a significant portion from existing customers.
Q: On the dividend payout ratio of 1.1, what is the rationale behind it in terms of market outlook and cash flow? A: Our dividend policy is to distribute available cash. Last year, we held back due to market uncertainties and acquisitions. Since then, the market has performed better than expected, and we've generated significant cash flow, allowing us to distribute a higher dividend.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
