AUSTRIACARD Cuts 2026 EBITDA Outlook After 10% Fall in 9 Months
Key Facts
On November 11, AUSTRIACARD HOLDINGS lowered its forecast for reported EBITDA in 2026, expecting it to decline by a high single-digit to low double-digit percentage compared with 2025, when it reached 48.8 million euros. The company maintained its forecast for annual revenue growth in the low double-digit range. It estimated exceptional expenses related to the Dai Nippon Printing offer and the management participation program at about 6 million euros in 2026. The revised outlook came alongside the announcement of nine-month results, which showed higher revenue despite lower operating earnings. The company attributed its new forecast to cost pressures and exceptional expenses.
The group generated revenue of 291.7 million euros in the nine months through the end of September 2026, up 11% from 262.4 million euros in the same period of 2025. But reported EBITDA fell 10% to 30.2 million euros, from 33.7 million a year earlier. The EBITDA margin declined to 10.4% from 12.8%, reflecting a widening gap between sales growth and its conversion into operating earnings. In the third quarter alone, EBITDA fell 33% to 10.8 million euros, compared with 16 million in the same quarter of 2025. The quarterly margin dropped to 10.3% from 16.2%, according to the company's filing on the Athens Stock Exchange.
The group's operating expenses, excluding depreciation and amortization, rose 12% to 111.7 million euros in the nine months. Selling, administrative, and research and development expenses combined increased at the same rate, as the company expanded its management, sales, and research and development teams. The company said expenses related to the management participation program, the valuation of long-term incentives, and the DNP offer added about 1 million euros to costs compared with the same period. It said exceptional expenses related to the offer and participation program are estimated at about 6 million euros for the full year. These items, together with operating costs, are weighing on earnings despite revenue growth.
Revenue growth spanned the group's geographic regions: revenue in the West segment rose 15% to 100.3 million euros, while revenue in Turkey, the Middle East, and Africa increased 14% to 53.4 million euros. The chief executive said the largest contributions to growth came from areas where the company had invested more selectively. These included digital technologies and integrated citizen identity services in the Middle East and Africa. He also pointed to payment solutions for fintech and digital banking clients in Britain and the United States. The mix shows that group growth drew on multiple businesses and regions, while margin declines remained evident in the consolidated results.
Operating cash flow was 10.9 million euros in the nine months, compared with an inflow of 23.2 million euros in the same period of 2025. The company said working capital accumulation affected cash flow by about 10 million euros. In the third quarter, operating cash flow was 20.2 million euros, up 59% from the third quarter of last year. The company attributed the quarterly improvement to the collection and billing of digitization projects in Greece, lower inventory, and recovery of value-added tax receivables. Net debt was 93.6 million euros at the end of September, up from 81.6 million at the end of 2025, but down about 10 million euros from the end of June 2026.
The chief executive said the company expects further improvement in working capital in the fourth quarter as more projects are completed and inventory falls. He added that the impact of supplier terms renegotiated in mid-2025 is beginning to emerge. These developments remain tied to the timing of project execution and collection of receivables, both of which affected cash flow during the nine months. Regarding the voluntary takeover offer from Dai Nippon Printing, the company said its conditions precedent had not been fully satisfied when the results were published. Foreign direct investment approval from the Austrian authorities remains pending.
The additional acceptance period for Dai Nippon Printing's offer ends on November 26, 2026, at 17:00 Vienna time and 18:00 Athens time. The company linked part of the exceptional expenses expected in 2026 to the offer and management participation program, while the offer's conditions precedent remained incomplete when results were announced. The annual revenue growth target remains in the low double-digit range, despite the cut to the EBITDA outlook. The 2026 annual results and financial report are scheduled for publication on March 30, 2027. That date will provide the full-year results after the financial year closes.