Troax Orders Jump 60% to €99.7 Million in Third Quarter
Key Facts
Troax Group said orders reached €99.7 million in the third quarter of 2026, up 60% year on year from €62.2 million in the same period of 2025. Chief Executive Martin Nyström said the group again achieved record levels of orders and sales. However, orders were flat after adjusting for currency effects, divestments and acquisitions, putting the reported jump in its operating context. Nyström said demand trends remained mixed across regions and segments. The report was published on October 29, after it had been scheduled for release at 08:00 Central European Time.
Sales rose to €96.9 million, up 51% from €64.2 million a year earlier. Excluding the effects of currencies and acquisitions, revenue growth was 5%. The company therefore recorded a record level of sales, but the adjusted growth rate was far below the nominal year-on-year increase. The comparison shows the differing effects of acquisitions and currencies on reported figures, alongside revenue growth excluding them. The company said both orders and sales reached record levels during the quarter.
On profitability, operating profit before amortization rose to €15.1 million from €10.3 million in the third quarter of 2025. But the margin on this profit fell to 15.6% from 16.1%, despite the increase in absolute profit. The company said exceptional costs related to the relocation of production in North America affected reported operating profit by €2.1 million. This means profit growth coincided with a lower margin, while the results absorbed the cost of relocating production. The information provided did not include an adjusted profit figure excluding this cost.
Activity varied across the group's business areas. Management said positive developments in the storage segment, particularly in Europe, continued during the quarter. It added that data center activity grew, supported by strong demand in North America and Europe. By contrast, demand remained weak in the automotive and construction segments. This divergence is consistent with the company's description of demand trends as mixed across regions and segments, rather than showing broad improvement in its markets. Troax said in its second-quarter report that demand had improved overall, but remained relatively weak in some of its main segments.
Net financial items recorded a deficit of €6.5 million, compared with a deficit of €0.9 million in the same period. The company attributed a negative effect of €5.3 million to the revaluation of contingent consideration for acquisitions during the quarter. The ratio of net debt to earnings before interest, taxes, depreciation and amortization, excluding the effect of International Financial Reporting Standard 16 and including the pro forma impact of acquisitions, rose to 3.1 from 1.0 a year earlier. These figures add a financial dimension to the quarter's picture, which combined higher sales and operating profit before amortization with a lower margin. The net debt-to-earnings-before-interest, taxes, depreciation and amortization ratio also rose from its level in the third quarter of 2025.
On changes after the end of the quarter, Troax said Robert Børning took over as chief financial officer on October 1. The group launched its new “Beyond Safety” brand direction on October 27. The chief executive was scheduled to present the quarterly results in a webcast at 11:00 Central European Time on the day the report was published. The company set February 5, 2027, as the publication date for its fourth-quarter 2026 report. Its first-quarter 2027 report is scheduled for publication on April 21 of the same year.