Incap revenue jumps 56% to quarterly record of €80.7 million
Key Facts
Incap said third-quarter 2026 revenue rose 56% year on year to €80.7 million, compared with €51.8 million in the same period last year, marking the highest quarterly revenue in its history. In its business review for January to September, the company said revenue grew organically by 18% during the quarter. It attributed the increase to the acquisition of Lacon, higher demand from defence-sector customers, and contributions from projects for existing and new customers. The figures follow second-quarter revenue growth of 34.1% to €74.2 million, with organic growth then at 4.1%. The third-quarter review was scheduled for publication on 29 October 2026 at around 9:00 Eastern European Time, with a results presentation on the same day at 11:00.
Comparable earnings before interest, taxes, depreciation and amortisation rose to €8.6 million in the third quarter from €5.8 million in the corresponding period, an annual increase of 50.3%. But the margin on this earnings measure fell to 10.7% of revenue from 11.1% a year earlier, reflecting revenue growth outpacing the improvement in operating profitability. In the second quarter, comparable operating profit was €6.5 million, or 8.8% of revenue, compared with €6.3 million and a margin of 11.5% a year earlier. A change in the business mix, delays to some deliveries due to component availability and exchange rates, and higher employee-related accruals had weighed on first-half profitability. The company said availability of components and printed circuit boards remained challenging in the third quarter as well.
Net profit was €6.9 million in the third quarter, compared with €4.3 million a year earlier, an increase of 61.8%. Incap said a revaluation of the contingent liability related to the acquisition contributed positively to the result, supporting net profit growth alongside operating performance. Earnings per share rose to €0.23 from €0.14, an annual increase of 61.9%. The company said the improvement in earnings per share reflected strong financial performance and some financial items, with a slight contribution from the share buyback programme. Meanwhile, higher production volumes increased net working capital and weighed on cash flow from operating activities.
At the business level, Incap said in its first-half report that demand remained good across several sectors, particularly defence. The company had attributed the 21.1% rise in first-half revenue to €130.2 million mainly to the contribution from its acquisition of Lacon, which was completed in February. It also expected the second half to be stronger, with defence production volumes set to increase during the rest of the year, based on strong order intake in the first half. In the third-quarter review, Chief Executive Otto Pukk pointed to the continued strong flow of orders, saying it "supports our expectation of a strong fourth quarter." Incap provides electronics manufacturing services and operates in Finland, Estonia, India, Slovakia, the United Kingdom, the United States, Germany, Romania and Hong Kong, with more than 3,000 employees.
The company raised its estimates for financial year 2026, expecting revenue of between €270 million and €290 million and comparable operating earnings before interest, taxes, depreciation and amortisation of between €26 million and €29 million, provided no unexpected events affect the business environment. It said continued order strength supports its expectation of a strong fourth quarter. At the same time, it warned that competition in India remains intense and pricing pressure continues. It added that larger customers diversifying their supplier base could weigh on its volumes in the future, with this expected to be balanced by growing business from new large-customer accounts, particularly in data centre applications. Incap set 17 November 2026 as the date for its Capital Markets Day for investors, analysts and media.