SP Group (CPSE:SPG) Stock Near Sector Discount Despite Record H1 Growth

SP Group stock has barely moved over the past month, yet the latest earnings land with far more force than the share price suggests. You are looking at a company trading on a P/E of 16.8x while delivering record first half 2026 results and a trailing net margin of 9.7%.

The real story sits beyond today’s tick-by-tick moves. Revenue is running close to DKK 3.4b on a trailing twelve month basis, and earnings over the past year are reported up 32.4%. For long term holders, the question is how that growth profile lines up with a valuation still below sector averages.

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Q2 2026 Earnings Summary

• Revenue (Q2 2026 vs. Q2 2025): DKK 983.9m vs. DKK 680.6m (up 44.6%)
• Net Income (Excl. Extra Items, Q2 2026 vs. Q2 2025): DKK 97.1m vs. DKK 49.5m (up 96.1%)
• Basic EPS (Q2 2026 vs. Q2 2025): DKK 8.20 vs. DKK 4.12 (up approximately 99%)
• Net Profit Margin (Trailing 12 Months vs. Prior Year): 9.7% vs. 8.7% (improved by 1 percentage point)

Tired of scrolling through earnings tables and raw figures trying to piece the story together yourself? See SP Group's full financial picture, with an at a glance view of its valuation in an interactive visual format via our company report for SP Group.

SP Group bull case: healthcare and margins on trial

Bulls argue SP Group is building a higher quality, more resilient manufacturer, with healthcare and operational upgrades lifting margins and smoothing growth. The H1 2026 mix helps that story. Healthcare now accounts for 35% of revenue and cleantech 29%, which supports the idea that SP Group is tilting towards regulated and recurring end markets rather than low margin bulk plastics.

Margin milestones are being hit. EBITDA margin is 20.3% in H1, already in the guided 19 to 21% range, while EBT margin of 12.7% sits above the 11 to 13% target. The new Polish cleanroom is commissioned and the OGM Moulding acquisition adds box build capability and wider value chain control, both key to the margin plan. Debt metrics are moving in the right direction, with net debt to EBITDA down to 1.9x, which supports the claim that expansion is not overwhelming the balance sheet.

SP Group bear case: plastics, capex and execution risks

Bears focus on plastics risk, heavy investment and execution on new capacity. That concern is not disproved. The business is still 76% customer specific sub supply, so a large part of SP Group remains exposed to OEM ordering patterns and price pressure, even as own brands carry higher margin potential.

High capex and acquisition spending are central to the healthcare and cleantech push. The OGM deal at about DKK 158m plus an earn out and expanded Polish facilities increase the need for strong utilization and project wins. Management itself flags short order visibility and possible stockpiling in Q2, which supports worries about demand volatility. Guidance leans on acquisitions for 16 to 17 percentage points of 2026 growth, so organic momentum has less room for disappointment. For now, strong earnings and lower leverage offset some fears, but they do not remove the structural questions around plastics exposure and returns on new investment.

Reveal whether Wall Street thinks SP Group’s margin push and healthcare tilt justify the current DKK476.5 share price by checking the consensus price target analysis for SP Group.

Stay Ahead With SP Group Insights

If SP Group's record H1 results and 9.7% net margin have caught your attention, register for free with Simply Wall St and add it to a Watchlist to track the share price against fair value and watch for an entry that fits your plan. Once you own the stock, use the Portfolio Command Center to cut through noise and focus on the key financial and earnings updates that matter most to your returns. Over time, compare your thinking with thousands of investors through the Community to spot shifts in sentiment and fresh angles on the SP Group story. This way you can identify potential catalysts and risks earlier and give yourself a better chance of staying ahead of the market.

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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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