CANCOM cuts 2026 revenue forecast to €1.65–1.75 billion amid demand pressures

Key Facts

CANCOM cut its 2026 financial-year revenue forecast to €1.65–1.75 billion from €1.75–1.85 billion after preliminary third-quarter results showed declines in revenue and operating earnings compared with the same period last year. It left its EBITDA forecast at €110–130 million and EBITA forecast at €55–75 million unchanged. CANCOM said longer decision-making cycles and project deferrals affected customer demand, particularly in the workplace segment. It added that the structural need for digitalization remained high. The company is scheduled to publish its full report for the first nine months on 12 November 2026.

CANCOM generated revenue of about €412.0 million in the third quarter, compared with €423.9 million a year earlier. EBITDA fell to €24.1 million from €27.1 million, while EBITA declined to about €10.8 million from €13.4 million. The figures reflect pressure on quarterly sales and profitability alongside longer customer decision-making and delayed project execution. The pressures cited by the company were concentrated particularly in the workplace segment. The annual revenue forecast was therefore cut while the ranges for operating earnings were held unchanged.

EDAG Engineering widened its estimate for the revenue decline in 2026 to a maximum of about 10%, from a previous forecast of a decline of up to about 5%. The company kept its guidance for an EBIT margin of about 3% at most. In its preliminary, unaudited results for the first nine months, revenue was €498.7 million, compared with €547.2 million in the corresponding period. Adjusted EBIT, by contrast, improved to €4.7 million from a loss of €4.5 million, and the adjusted margin rose to 0.9% from minus 0.8%. The results show a divergence between lower revenue and improved adjusted operating profitability during the period.

EDAG attributed demand pressure to continued caution among customers in the automotive and industrial sectors, fewer project inquiries and customers increasingly carrying out development work in-house. The company said it no longer expected to make up the revenue shortfall fully in the final quarter. This means the annual revision reflects, alongside demand conditions, a decline in the volume of work customers assign to engineering service providers. EDAG is scheduled to publish its full third-quarter financial report on 5 November 2026. The report will provide details on the preliminary results the company announced for the first nine months.

At Cherry, revenue for the first nine months fell to €58.9 million from €70.7 million a year earlier. Adjusted EBITDA improved to a loss of €6.9 million from a loss of €11.9 million; the prior-year comparison excludes €7 million from the sale of Active Key. The company attributed the revenue decline mainly to a deliberate reduction in distribution-channel inventories in the peripherals segment. It said the improvement in adjusted EBITDA was largely linked to a 7.4 percentage point increase in gross margin, alongside cost cuts and the initial results of Project Blossom. Its results highlight that shrinking sales coincided with a narrower adjusted loss.

Cherry reached a new agreement with an Argand subsidiary to provide a liquidity commitment of up to €5 million, effective through 31 December 2026. The company said the previous commitment announced in May was fulfilled through a capital increase. The financial support comes as the company reports lower revenue, while its results point to improved adjusted EBITDA. Among German indicators, the ifo Business Climate Index rose to 90.2 points in October from 89.9 in September, with more optimistic expectations and a slightly weaker assessment of the current situation by companies. The index offers a partly different picture from the caution companies cited in their forecasts and results.

The preliminary reading of Germany’s manufacturing PMI rose to 54.2 points in October from 53.9 in September, while the manufacturing output index fell to 55.1 from 56.0. At the same time, the composite PMI declined to 52.8 from 53.8, but remained above the 50 threshold separating growth from contraction for the fourth consecutive month. The indicators therefore sent mixed signals: the manufacturing PMI improved, while the composite index slowed and the manufacturing output index declined. The European Central Bank is due to announce its monetary policy decisions on 29 October 2026 at 14:15 Central European Time. The bank will hold its press conference the same day at 14:45.