Addtech (OM:ADDT B) Stock Price Cools Despite Strong Q2 Earnings

Addtech AB entered its Q2 2027 report with a premium reputation and a rich 36.1x P/E, yet a stock that has slipped about 10% over the past month. The fresh numbers tell a different story to that cooling share price. Quarterly revenue landed at SEK5,907m and net income reached SEK570m, with trailing 12 month profit of SEK2,309m and a 9.8% net margin.

The expectation gap is clear. Investors have been marking the price down, while the latest earnings still lean on resilient profitability and a full order book narrative that equity holders now need to reassess.

Impressed by Addtech AB’s net margin but uneasy about paying a 36.1x P/E for a stock that has slipped recently? Compare that trade-off against other quality names that pair solid earnings power with more grounded valuations in our 194 high quality undervalued stocks.

Q2 2027 Earnings Summary

• Revenue (Q2 2027 vs. Q2 2026): SEK5,907m vs. SEK5,450m (up about 8%)
• Net Income (Excl. Extra Items, Q2 2027 vs. Q2 2026): SEK570m vs. SEK484m (up about 18%)
• Basic EPS (Q2 2027 vs. Q2 2026): Not disclosed for Q2 2027 vs. SEK1.79 in Q2 2026 (direction not measurable due to missing current EPS)
• Net Profit Margin (Trailing 12 Months vs. Prior Year): 9.8% vs. 8.9% (margin higher year on year)

Ask Charlie which Addtech backlog will move earnings most in H2.

Addtech bull case hinges on margins and backlog

The optimistic story hangs on acquisitions, energy exposure and a rich order book turning into durable earnings strength at Addtech AB.

"The group reports consistently high customer activity and broadly positive book to bill clearly above 1, with a well-filled order book tilted toward longer-dated projects. This provides visibility for future revenue and supports EBITA development as these orders are executed."

Q2 revenue of SEK5,907m and trailing profit of SEK2,309m with a 9.8% net margin show that healthy activity is still flowing through. Energy and Electrification bookings described as strong are now reflected in higher margins, which supports this part of the thesis.

Testing the Addtech bear case on cost and demand

The worry is that weak pockets of demand and front loaded costs quietly erode the earnings story at Addtech AB.

"Higher costs in some companies due to anticipated growth that has not yet occurred may continue to weigh on profitability if order intake softens, particularly in areas where management is hesitating to cut capacity because they expect projects to return. This would put pressure on net margins and earnings."

Q2 EBITA grew faster than sales and the trailing net margin sits at 9.8%, which does not yet point to broad pressure. Segment comments still flag softness in certain niches, so the risk is present but not dominating group level profitability in these results.

The price and this Narrative do not agree. → Uncover what this Narrative says Addtech AB (publ.) is actually worth.

Hunt For Mispriced Earnings Power

Addtech AB (publ.) highlights how a rich P/E can coincide with firm profitability and a cooling share price. The real opportunity is identifying stocks that could be undervalued before the market adjusts their earnings power.

• Company 1 - 28% below our estimate - converts grid modernization and diagnostic testing demand into higher margin potential as acquired assets are integrated.
• Company 2 - 23% below our estimate - shifts toward higher value healthcare elastomer components as an acquired capsule platform deepens exposure to premium food and beverage packaging.
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That is three of the list. See every one of the 194 undervalued companies on it →

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