ITAB Group (OM:ITAB) Stock Faces Margin Squeeze As 1.5% Net Profit Challenges Bullish Narrative

ITAB Group (OM:ITAB) has put up a solid set of Q2 2026 numbers, with revenue of about SEK3.2b and basic EPS of SEK0.22, backed by trailing 12 month EPS of SEK0.78. The company has seen revenue move between SEK3.2b in Q2 2025 and SEK3.4b in Q4 2025, while basic EPS has ranged from SEK0.06 in Q2 2025 to SEK0.36 in Q3 2025, giving you a clearer view of how the top line and EPS have tracked through the recent reporting periods. With trailing 12 month net profit margin sitting at 1.5%, the latest results keep the focus firmly on how much of that revenue is being converted into profit.

See our full analysis for ITAB Group.

With the headline numbers on the table, the next step is to see how ITAB Group's results line up with the prevailing market narratives around its growth prospects, risk profile, and profitability trajectory.

See what the community is saying about ITAB Group

Margins Thin At 1.5% Despite Higher Earnings

• On the trailing 12 month view, ITAB Group converted SEK12.8b of revenue into SEK198.8 million of net income, which equates to a 1.5% net profit margin compared with 1.8% a year earlier.
• Consensus narrative highlights potential margin benefits from integrating HMY and moving to solution oriented offerings. However, the current 1.5% net margin and the Q2 2026 net income of SEK55 million show that any margin lift from cost savings or higher value solutions has not yet appeared clearly in the reported numbers.
  • Supporters of the bullish story point to expected synergies in procurement and cross selling, but the last six quarters include a period where ITAB Group reported a net loss of SEK12 million in Q4 2025, which keeps recent profitability volatile.
  • The consensus view also talks about the shift toward technical and digital retail solutions as a way to improve earnings quality, while the trailing EPS of SEK0.78 and Q2 EPS of about SEK0.22 show progress in earnings per share with margins still tight.

Investors who want to see how these margin trends feed into the broader story around ITAB Group can check what the community is highlighting in the latest narratives: 🐂 ITAB Group Bull Case

DCF Fair Value Of SEK92.74 Vs SEK15.92 Price

• ITAB Group's share price of SEK15.92 is described as being far below a DCF fair value estimate of SEK92.74, while the current P/E of 20.4x sits below peers at 25.5x but above the wider European Commercial Services group at 16.4x.
• Critics of the bullish case focus on the relatively high P/E versus the broader industry and the narrow 1.5% trailing net margin. This makes the large gap to DCF fair value and the suggested upside to an analyst price target of about SEK22.44 heavily dependent on the earnings path that analysts have outlined.
  • Bears argue that paying a P/E above the sector while net margin sits at 1.5% could be demanding, even if earnings on the trailing 12 month basis rose 18.1% year over year.
  • The data also shows that quarterly net income has ranged from SEK37 million in Q1 2025 to a loss of SEK12 million in Q4 2025, so anyone leaning on the DCF fair value and price target has to be comfortable with that recent earnings variability.

If you want to see how skeptics frame these valuation and margin questions around ITAB Group, the dedicated bear case lays out their key points in one place: 🐻 ITAB Group Bear Case

Earnings Growth Forecast At 42.9% Per Year

• Analysts are cited as expecting ITAB Group's earnings to grow about 42.9% per year over the next three years, compared with reported trailing 12 month earnings growth of 18.1% and a five year average of 17.1% per year.
• The consensus narrative links this higher earnings path to the HMY acquisition and the move toward solution oriented, technical and digital offerings, and the reported figures show why expectations are focused on earnings rather than just sales.
  • On the revenue side, forecasts point to growth of 4.4% per year, and the last six reported quarters show revenue moving between SEK2,819 million and SEK3,422 million, which helps explain why analysts lean more on margin expansion than on very fast top line growth.
  • At the same time, trailing EPS of about SEK0.78 and quarterly EPS ranging from about SEK0.06 in Q2 2025 to about SEK0.36 in Q3 2025 illustrate that earnings per share have already moved meaningfully over the last two years, which gives some historical context for the stronger earnings forecasts.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for ITAB Group on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With the mix of optimism and caution around ITAB Group, it makes sense to review the numbers yourself and decide how they stack up. If you want to see why some investors are focusing on potential upsides, take a closer look at the 4 key rewards.

See What Else Is Out There Beyond ITAB Group

ITAB Group's 1.5% net margin, recent quarterly loss and earnings variability highlight that profitability is still fragile despite the stronger DCF valuation story.

If you want alternatives where profit margins look more resilient and recent earnings swings are less pronounced, start comparing ideas using the 286 resilient stocks with low risk scores today.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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