Lagercrantz Group delivered third-quarter results that outperformed market expectations, posting sales of SEK2,854 million in Q3 2026, a 15.9% increase year on year. The top-line figure surpassed Kepler Cheuvreux’s estimate of SEK2,777 million as well as the consensus forecast of SEK2,751 million.
Profitability also improved. EBITA reached SEK513 million for the quarter, up 19.9% from the same period a year earlier, producing an EBITA margin of 18.0%, up from 17.4% in Q3 2025.
Drivers of the quarter
The company attributed a large portion of the earnings strength to performance in its Electrify and Control segments. Electrify posted a marked improvement in profitability, delivering a 21.2% EBITA margin, an increase of 516 basis points versus the prior year. EBITA in the Electrify division rose 54.6%. Control also contributed meaningfully, with EBITA up 29.8%.
Operational momentum was supported by order activity and M&A. Organic order intake expanded by 7% during the quarter, indicating continuing demand. Organic sales growth was modest at 2%, but acquisitions added 18% to overall sales growth. Currency movements detracted from reported sales by 4%.
Division-level nuances
Not all business areas progressed uniformly. TecSec achieved 10.1% sales growth but saw EBITA decline by 2.2% in the quarter. Niche Products recorded a 16.6% increase in sales while EBITA advanced by only 1.6%.
What this means
The quarter shows Lagercrantz achieving stronger-than-expected revenue and operating earnings, driven principally by its Electrify and Control businesses and supplemented by acquisition-related expansion. Organic order intake growth offers a signal of continued demand, while the mix of organic growth, acquisitions and currency effects explains the composition of the reported sales increase.
Summary
- Sales: SEK2,854 million in Q3 2026, up 15.9% year on year; above analyst and consensus views.
- EBITA: SEK513 million, up 19.9% year on year; EBITA margin rose to 18.0% from 17.4% a year earlier.
- Segment strength: Electrify and Control drove EBITA gains of 54.6% and 29.8% respectively; Electrify margin reached 21.2% (+516 basis points).
- Order and growth composition: Organic order intake +7%; organic sales +2%; acquisitions +18%; currency -4%.
Key points
- The company beat both analyst (Kepler Cheuvreux) and consensus sales estimates, indicating better-than-expected demand during the quarter.
- Profitability improved materially, with EBITA and margins helped by strong results in Electrify and Control.
- Growth was driven by acquisitions as well as organic orders, with a negative currency effect partially offsetting gains.
Risks and uncertainties
- Currency volatility - reported sales were reduced by a 4% negative currency impact during the quarter.
- Mixed divisional performance - TecSec saw a decline in EBITA despite sales growth, and Niche Products posted limited EBITA improvement versus stronger sales gains.
- Reliance on acquisitions for a significant portion of growth - 18% of the overall sales increase derived from acquisitions, which may affect future comparability.
These factors touch sectors tied to industrial technology and supply chains for electronic and control systems, where order intake, integration of acquisitions and currency swings can influence near-term results.