Alleima (OM:ALLEI) Stock Price Sinks As Q3 Earnings Squeeze Persists

Alleima came into this Q3 2026 report on the back foot, with the share price down about 19% over the past week and more than 20% over the past month. The headline today is simple: earnings for the quarter softened, with basic EPS at 0.82 SEK on revenue of 4,257m SEK, as key parts of the metals and advanced materials portfolio hit a rough patch.

The market has already punished the stock. The bigger story now is the squeeze in profitability and how that pressure lines up against multi year earnings forecasts and a P/E multiple that still prices Alleima above the broader European metals and mining group.

Love Alleima's advanced materials exposure but concerned about shrinking earnings and a still full P/E tag? See how it stacks up against sturdier industrials in our list of solid balance sheet and fundamentals stocks (207 results)

Q3 2026 Alleima Earnings Summary

• Revenue (Q3 2026 vs. Q3 2025): 4,257m SEK vs. 4,222m SEK (roughly flat, slight increase)
• Net Income (Excl. Extra Items, Q3 2026 vs. Q3 2025): 205m SEK vs. 85m SEK (up about 141%)
• Basic EPS (Q3 2026 vs. Q3 2025): 0.82 SEK vs. 0.34 SEK (up about 142%)
• Adjusted EBIT Margin (Group, Q3 2026): 4.8% on adjusted EBIT of 202m SEK, indicating relatively low profitability this quarter

Steam‑generator tube delays and a new mill defined Alleima’s quarter. Ask Charlie what Alleima’s new nuclear mill means for margins.

Alleima’s Growth Story: Progress Where It Matters

For the bullish view to hold, Alleima needs concrete traction in higher value segments and efficiency gains, not just talk about long term potential.

"Efficiency measures already delivering SEK 30 million of quarterly savings, together with improved performance in Tube and Kanthal and better utilization of recent capacity investments, create room for operating leverage that can support adjusted EBIT margins and earnings as volumes stabilize or improve."

The Q3 print shows this milestone being partially met. Management now cites about SEK 40m of permanent savings in the quarter and Kanthal is delivering strong margins and volume leverage. At the same time, Tube margins remain under pressure from OCTG weakness and nuclear production issues, which limits the near term operating leverage that the bullish narrative leans on.

Not everyone reads the same price the same way. → See the higher figure this Narrative lands on, and how it gets there.

Alleima Bear Case: Project Exposure Bites, Capacity Still Thin

The bearish view argues that Alleima’s project heavy Tube division would strain earnings when oil and gas demand softens and new capacity runs below plan.

"Strong capacity additions in umbilicals, medical and industrial heating, including new facilities in the U.K., U.S. and Malaysia, could outpace realized demand if order momentum softens. This may lead to lower absorption, higher unit costs and softer EBIT margins."

Q3 results give that concern real weight. Tube rolling 12 orders fell about 8% organically and revenues declined about 6%, while group adjusted EBIT margin sat at 4.8%. Under absorption in OCTG and nuclear production issues in the old mill show new investments are not yet offsetting project volatility.

Hunt For Earnings Disconnects

Alleima shows how earnings pressure and valuation can sometimes move in separate directions for a period. The real opportunity sits in finding companies that could be undervalued before the gap closes.

• Company 1 - 35% below our estimate - uses record power systems demand and added engine capacity to target data center contracts.
• Company 2 - 24% below our estimate - leans into subsidised heat pumps and hybrids as customers replace legacy heating with higher margin systems.
• Company 3 - 19% below our estimate - rides hyperscale data center build outs as contractors award more work to a balance sheet rich specialist.

That is three of the list. See all 195 potentially undervalued companies →

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