Bechtle Raises 2026 Profit Growth Outlook to More Than 10% on Record Orders
Key Facts
Bechtle raised its forecast for 2026 growth in earnings before taxes to more than 10%, from a previous range of 5% to 10%, marking its second upward revision this year after increasing its original outlook in July. The German company announced the update on November 13 after strong third-quarter growth, saying business volume rose 19.0% to 2,438.0 million euros between July and September, with organic growth of 17.5%. The figures give the company a basis for raising its profitability target, alongside a record order backlog. Earnings before taxes and earnings per share also exceeded average analyst estimates, while revenue came in below the average. The quarter’s results thus combined strong demand momentum and improved profitability with slower-than-expected revenue growth.
Earnings before taxes reached 91.7 million euros in the third quarter, up 13.9% year on year and above the average analyst estimate of 84.5 million euros. Earnings per share came to 0.50 euros, compared with an average estimate of 0.48 euros. The earnings-before-taxes margin rose to 5.4% of business volume, from 5.1% in the same period a year earlier. The gross margin also improved to 19.2% from 18.4%. Revenue, by contrast, increased 6.1% to 1,684.4 million euros but fell short of the average analyst estimate of 1.73 billion euros. The comparison shows that earnings and margin growth outpaced revenue growth during the quarter.
Business growth was accompanied by an acceleration in new orders, with incoming orders rising 18.8% to 2,510.2 million euros in the third quarter. The order backlog reached a record 3,606.8 million euros on September 30. Bechtle said all segments and customer groups contributed to growth, alongside a seasonal recovery in the public sector. By region, Germany led with a 20.8% increase in business volume, followed by other Europe, up 20.5%, and the Benelux region, up 19.1%. France recorded positive growth of 4.7%. The geographic breakdown highlights broad-based growth across the company’s markets, alongside a larger order backlog supporting subsequent activity.
Chief Financial Officer Christian Jehle said growth momentum remained strong and that price increases in some product groups had been one factor supporting it, adding that this was expected to continue in the coming months. The company said economic and geopolitical challenges persisted, and that prices for computers, servers and storage had risen sharply because of strong demand for memory chips. This differs from describing pricing pressures as a factor weighing on performance: management linked higher prices in some categories to growth momentum. Operating cash flow, however, fell to negative 29.5 million euros in the third quarter from positive 124.9 million euros a year earlier. The company attributed the decline to working capital needs, including higher inventories as project-related activity picked up in September.
Bechtle kept its 2026 forecast for business volume growth at more than 10% and for revenue growth at between 5% and 10%. It also continues to expect an earnings-before-taxes margin on business volume slightly below the previous year’s level of 3.8%. In the first nine months of the year, operating cash flow was negative 131.2 million euros, compared with positive 149.1 million euros in the corresponding period of 2025, but the company reaffirmed its forecast for significantly positive operating cash flow for the full year. The management board said it expected growth momentum to continue in the fourth quarter despite a higher year-earlier comparison base, citing third-quarter performance, the record order backlog and promising initial indicators for October. The outlook remains subject to a tense economic and geopolitical environment and pricing challenges in the technology sector.