Earnings call transcript: Momentum Group posts solid Q3 2026 growth

Momentum Group reported a 8% increase in revenue to 805 million SEK in the third quarter of 2026, with group EBITA also rising 15% to 109 million SEK. The company's shares fell 1.57% to $12.61 following the earnings call. Despite the modest decline, InvestingPro data suggests the stock may be undervalued. The industrial group's Q3 performance was driven by acquisitions and better margins, while both the Industry and Infrastructure business areas showed improvement.

For the first nine months of the year, revenue grew 5% to 2.4 billion SEK, and EBITA increased 11% to 292 million SEK. The company's EBITA margin stood at 13.5%, up from 12.0% in the previous nine months. Operating cash flow improved sharply to 98 million SEK, up from 38 million SEK in the prior year. Management announced a new structure from January 2027, aimed at enhancing growth and capital allocation.

The new business model, consisting of three areas: Power Transmission, Industrial Solutions, and Process Technology, is expected to support the company's goal of doubling EBITA by the end of 2030.