EL7.AI
StocksMedium•3 November 2026•
4 min read

ITAB posts operating profit of SEK 6 million after ERP costs weigh on quarter

Key Facts

1Operating profit was SEK 6 million in the third quarter, compared with SEK 220 million a year earlier, and the margin fell to 0.2% from 6.7%.
2ITAB estimated the earnings impact of halting implementation of the ERP system at about SEK 250 million, of which about SEK 222 million was charged to operating profit in the third quarter.
3Sales rose 3% to SEK 3,397 million, and increased 2% after adjusting for currency effects.
4EBITA excluding non-recurring items rose 3% to SEK 266 million, from SEK 258 million.

In a report published on November 3, 2026, ITAB Group said operating profit fell to SEK 6 million in the third quarter, from SEK 220 million in the same period a year earlier. The operating margin declined to 0.2% from 6.7%, a sharp contrast with sales growth during the period. The group said its decision to halt implementation of the new enterprise resource planning system resulted in a non-recurring charge to quarterly earnings. It estimated the decision’s total impact on earnings at about SEK 250 million, of which about SEK 222 million was recorded against operating profit in the third quarter. The figures show the scale of the accounting impact on reported operating results, alongside an improvement in the company’s adjusted profitability measure.

Net sales rose to SEK 3,397 million from SEK 3,297 million a year earlier, an increase of 3% year on year, while growth excluding currency effects was 2%. Revenue therefore grew in the same quarter that reported operating profit contracted. By contrast, EBITA excluding non-recurring items rose 3% to SEK 266 million, compared with SEK 258 million in the third quarter of the previous year. As presented by the company, this measure reflects earnings before the impact of non-recurring items, while reported operating profit includes those items. The difference between the figures puts the cost of halting the new system at the center of the explanation for the contrast between sales growth and the sharp decline in operating profit.

ITAB said its board decided in September to halt implementation of the new ERP system, and the group estimated the decision’s total impact on earnings at about SEK 250 million. Of that amount, the company charged about SEK 222 million to operating profit as a non-recurring item in the third quarter of 2026. The group said its plan after halting implementation is to combine its existing ERP systems with shared applications across the group. The approach is intended, according to the company, to accelerate integration and reduce implementation risks. The change comes as the group continues to integrate its businesses, after completing the acquisition of HMY on January 31, 2025, and including it in the group from February 1 of the same year.

The weakness in the quarterly result was also reflected in net earnings, with the group reporting a loss of SEK 56 million after financial items, compared with a profit of SEK 167 million a year earlier. The loss after tax was SEK 68 million, against a profit of SEK 99 million in the corresponding period. Cash flow from operating activities was also negative at SEK 168 million during the quarter, compared with negative SEK 9 million a year earlier. These figures set the period’s result after financial items and tax, and operating cash flow, alongside the decline in operating profit. The statement cited in the evidence did not document a direction for ITAB shares in the session when the results were published.

On operating performance, the CEO said synergy efforts were progressing according to plan and were having a positive effect on the group’s underlying profitability. The CEO added that ITAB began coordinating its facilities in the United Kingdom and Turkey during the quarter, with the aim of increasing cost-structure flexibility. The company presents these steps in the context of its work on underlying profitability alongside its shift away from the halted ERP project. Second-quarter 2026 results showed operating profit of SEK 138 million and an operating margin of 4.3%, compared with SEK 120 million and a margin of 3.7% a year earlier. Those figures provide context from the previous quarter, before the third quarter was charged with non-recurring items related to the decision to halt implementation of the new system.

ITAB scheduled publication of its 2026 full-year report for February 10, 2027, at 7:00 a.m. Central European Time. The report will cover the year from January 1 to December 31, 2026, according to the company’s financial calendar. The date follows third-quarter results that combined sales growth and higher EBITA excluding non-recurring items with losses after financial items and tax. The annual report will also present results for the subsequent period within the same financial year, following the shift to the mix of systems and applications announced by the group. The company did not provide a numerical forecast for upcoming results in the available information.