Organic growth reached 13%, the highest in five years, and EBITAC margin excluding Robotics rose to 25.3% 2. Reported EPS of 16.6 cent leans on a 280.1 MEUR gain; adjusted EPS was 8.2 cent 26. The report gives no numeric guidance.
Key figures
Million EUR | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
Operating net sales | 1,049.1 | 976.1 | +7% |
Organic growth | 13% | 5%¹ | +8 pp |
Recurring revenue | 276.5 | 318.4 | -13.2% |
EBITAC excl. Robotics | 265.3 | 238.4 | +11% |
EBITAC margin excl. Robotics | 25.3% | 24.4% | +0.9 pp |
EBITAC margin incl. Robotics | 24.0% | 23.9% | +0.1 pp |
Adjusted EPS (Euro cents) | 8.2 | 6.9 | +19% |
Reported EPS (Euro cents) | 16.6 | -1.6 | n.m. |
Cash conversion | 82% | 85% | -3 pp |
Growth was broad, but divestments held reported sales to 7%
Operating net sales rose 7% to 1,049.1 MEUR (976.1), while organic growth was 13% 2. Structure subtracted 7% and currency added 2% 5. Autonomous Solutions grew 23% and Manufacturing Intelligence 16%, while Infrastructure & Geospatial grew 4% 3.
By product type, sensors & robotic solutions grew 20% against 4% for software and services 2. Recurring revenue was 276.5 MEUR (318.4), up 3% organically 5. The report does not explain the reported fall in recurring revenue. I read it as the effect of the divested Design & Engineering business (software) in the base. By region, the Americas grew only 6%, partly because Autonomous Solutions faced a large one-off order in the 2025 comparative 3.
The margin gain is real, and larger like-for-like because the prior-year base was flattered
EBITAC margin excluding Robotics was 25.3% (24.4) as reported 2. Excluding the divested D&E business from the comparative, the year-earlier margin was 23.1%, so the gain was 220 basis points 3. Management says Q3 2025 was flattered by 230 basis points, mainly by a large one-off defence order in Autonomous Solutions. It puts the like-for-like improvement at about 450 basis points: around 130 from currency, 170 from the cost restructuring programme and 150 from better drop-through on growth 3. Sequentially the margin rose 100 basis points 3.
Not every margin line improved. Gross margin excluding D&E was 61.6% (61.9), which management attributes to product mix, mainly strong sensor growth 3. EBIT1 margin was 26.5% (27.1), with an 80 basis point headwind from the narrowing gap between capitalisation and amortisation 6. Including Robotics, EBITAC margin was 24.0% (23.9), after 13.0 MEUR of Robotics investment 3.
Reported EPS was driven by a fair value gain, not operations
Basic EPS from continuing operations reached 16.6 Euro cents (-1.6), while company-defined adjusted EPS rose to 8.2 cents (6.9). 2Reported earnings benefited from EUR 280.1 million of positive items affecting comparability, principally a EUR 264.5 million fair value gain on equity investments and a EUR 15.8 million gain related to the final D&E disposal settlement. The prior-year quarter included EUR 261.8 million of negative items affecting comparability, mainly restructuring costs.6
Depreciation, amortisation and impairment included 156.4 MEUR of impairment a year earlier and none this quarter 6. The share count was unchanged, so the EPS gap reflects earnings.
Cash conversion weakened against a year earlier, though cash flow rose on lower interest
Cash conversion was 82% (85) of EBITAC 2. The working capital outflow was 63.3 MEUR, against 33.4 MEUR a year earlier 9. Operating cash flow before tax, interest and nonrecurring items was 207.8 MEUR (198.6) 9.
Operating cash flow before nonrecurring items rose to 165.1 MEUR (130.8) 9. Net interest paid was 2.1 MEUR against 32.5 MEUR, which helped 9. Management links the lower financial net expense to lower net debt 6. Nonrecurring cash outflow, restructuring and separation costs, was 46.5 MEUR (20.5) 19. Net debt closed at 488.7 MEUR, 0.3 times EBITDA 9.
What to watch next
Management gives no numeric guidance. It cites strong order intake and a backlog build entering the final quarter 2.
Waygate Technologies is expected to complete in Q4, and Rocscience closing is expected in Q4 314. The report does not give the financial effect of either.
Robotics cost 13.0 MEUR in the quarter, and the next quarter's EBITAC margin including Robotics shows whether the cost restructuring programme can offset it 3.
Sources
Produced by Clarifo Research with the Clarifo financial research engine from the company's public filings. AI was used in parts of the analysis and drafting. Figures are checked automatically against the filings they come from. This is not investment advice.