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    How Profit Recovery Will Impact Afry Stock (OM:AFRY)

    Simply Wall St·10/24/2026 06:40:25
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    • Afry AB reported Q3 2026 results with sales of SEK 5,793 million and net income of SEK 204 million, while nine month net income reached SEK 638 million on SEK 18,629 million of sales.
    • Profit per share from continuing operations moved higher in both the quarter and year to date, pointing to improving earnings quality despite softer nine month sales.
    • We will now look at how Afry's stronger Q3 profitability and restructuring progress could reshape the broader investment narrative from this point onward.

    Scan how Afry’s profitability reset compares with peers by reviewing list of solid balance sheet and fundamentals (204 results) that may be better positioned for the next phase of earnings quality improvements.

    Afry Investment Narrative Recap

    To own Afry, you need to believe the reset in profitability can stick while its exposure to energy transition and infrastructure work keeps the project pipeline healthy. The Q3 report, with SEK 204 million in net income and higher earnings per share, supports that case. The key near term swing factor remains execution on utilization and pricing as demand stays mixed across segments.

    The biggest risk is that weak adjusted organic sales and lingering price pressure in automotive related and real estate exposed work drag on revenue and margins, leaving the backlog under monetized. Q3 profitability looks better, but it does not remove concerns around leverage, cash conversion, and the need for stronger order intake.

    The Q3 2026 earnings release is the focal update for this story. Afry reported SEK 5,793 million in quarterly sales and SEK 18,629 million for the first nine months, with net income of SEK 204 million and SEK 638 million respectively. Earnings per share from continuing operations were higher than a year ago, which lines up with the ongoing restructuring and mix shift already in progress.

    For you as an investor, the link back to the existing catalysts is clear. Profitability is improving, while adjusted organic sales have been soft and leverage sits around 3x EBITDA. Execution risk is still there. The latest numbers give more evidence that the restructuring, higher utilization ambitions, and focus on higher margin sectors will need to keep translating into earnings quality rather than just a one quarter effect.

    Afry's narrative projects SEK 28.6 billion revenue and SEK 1.7 billion earnings by 2029. This reflects 4.1% yearly revenue growth and an earnings increase of about SEK 842 million from SEK 858.0 million today.

    Uncover why Afry's fair value indicates an 8% potential upside to its current price that could narrow quickly.

    OM:AFRY 1-Year Stock Price Chart
    OM:AFRY 1-Year Stock Price Chart

    Exploring Other Perspectives

    Some of the most optimistic analysts focus on Afry’s record SEK 22.4b backlog as the key catalyst. Before this Q3 2026 report, they were pencilling in revenue of about SEK 28.6b and earnings around SEK 1.8b by 2029. You can treat this upbeat view as one of several competing narratives that Q3 could reshape.

    Explore 4 other Afry fair value estimates, including one that suggests as much as 203% upside from the current price!

    Form Your Own Verdict

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so consider your own analysis.

    Looking For More Ideas Beyond Afry?

    If Afry has sharpened your focus on earnings quality and balance sheet strength, it can help to compare it with a wider field of companies that meet clear, data backed criteria.

    • For investors who want resilient businesses with less financial strain, consider screening for companies in our 221 resilient stocks with low risk scores to see which ones fit that profile.
    • If dependable income matters to you, scan through the 226 dividend fortresses and see which payers line up with your yield and stability preferences.
    • When you are hunting for strong fundamentals that the market may not be fully pricing, the 615 high quality undiscovered gems can surface lesser known candidates worth a closer look.