Troax Group (OM:TROAX) Q3 Results Recast Profit Recovery Against Margin Strain

Troax Group just reported Q3 2026 and the share closed today at SEK149.4 after a mixed year for holders. The headline is clear: record quarterly sales of €96.9m and adjusted earnings per share of €0.25 show a business that is rebuilding profitability after earlier setbacks.

The twist is in the mood swing. Short term price moves are reacting to a company that only recently reported weak trailing margins and a one off loss, while today’s figures point to a very different earnings picture. The tension between that recovery story and still fragile sentiment is driving this session’s trade.

Love Troax Group’s record sales but concerned that recent weak margins and a one off loss could happen again? Check the list of solid balance sheet and fundamentals stocks (202 results).

Q3 2026 Earnings Summary

• Revenue (Q3 2026 vs Q3 2025): €96.9m vs. €64.2m (up about 51%)
• Net Income, Excl. Extra Items (Q3 2026 vs Q3 2025): profit of €7.1m vs. profit of €6.8m (up about 4%)
• Basic EPS (Q3 2026 vs Q3 2025): €0.12 per share vs. €0.11 per share (up about 4%)
• Adjusted EBITA Margin (Q3 2026 vs prior period reference): 15.6% in Q3 2026, with management citing sequential profitability improvement, while gross margin pressure continues

Record orders, but more low-margin data center deals are diluting profit. Ask Charlie which data center wins matter most for Troax Group.

Troax bullish story: orders and savings on trial

Supporters argue that Troax Group’s bigger footprint and data center tilt should translate into sturdier earnings power.

"The contribution from recently acquired flexible barrier and data center safety businesses, which added more than 20% to sales and more than 25% to orders in early 2026 and triggered a higher expected earn out payout, is still working through the income statement and has scope to lift group revenue and gross margin mix."

Q3 shows that thesis partly landing. Record orders of €99.7m and sales of €96.9m are heavily acquisition led, and adjusted EBITA margin improved to 15.6%. Yet gross margin slipped to 36.1%, so mix uplift is not visible so far.

Troax bear case: auto softness and debt stress checked

On the risk side, critics focus on auto exposure, margin fragility and leverage as potential drags on Troax Group.

"Net debt to EBITDA has risen to 3.3x in Q2 2026, above the stated target of below 2.5x. If cash conversion from the current order book is slower than expected or further earn out revaluations increase obligations, Troax Group could face a more constrained balance sheet with less flexibility to invest while interest costs weigh on earnings."

Q3 results keep this concern alive but not escalating. Net debt ratio eased to 3.1x and operating cash flow reached €9.9m, yet earn out liabilities rose by about €5.3m and working capital still absorbed cash.

That disagreement has a full argument behind it. → Uncover the higher Fair Value this Narrative argues for.

Hunt For Quiet Disconnects

Troax Group just showed how a single quarter can reframe a recovery story without fully settling the debate. The real opportunity is finding stocks that could be undervalued before the market reassesses their pricing.

• Company 1 - 15% below our estimate - taps surging demand from hyperscale data center builds while rising receivables and concentrated ownership influence its risk profile.
• Company 2 - 48% below our estimate - leans into higher margin categories and direct channels as an efficiency program shifts gross margins and overhead.
• Company 3 - 41% below our estimate - sells oncology planning software hospitals adopt as aging populations and AI driven treatment protocols reshape radiotherapy delivery.

Those are three of them. See all 201 potentially undervalued companies →

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