• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Nederman Holding (OM:NMAN) Stock Margins Stay Thin As Bulls Count On 21.7% Earnings Growth

    Simply Wall St·07/18/2026 11:26:26
    Listen to the news

    Nederman Holding (OM:NMAN) has reported Q2 2026 figures with revenue of SEK 1,361.7 million and basic EPS of SEK 1.54, while net income (excluding extra items) was SEK 53.9 million for the quarter. The company’s quarterly revenue moved from SEK 1,405.8 million and EPS of SEK 1.69 in Q1 2025 to SEK 1,256.9 million and EPS of SEK 1.31 in Q1 2026. For the Q2 periods, revenue and EPS shifted from SEK 1,439.1 million and EPS of SEK 1.97 in 2025 to SEK 1,361.7 million and EPS of SEK 1.54 in 2026. These results keep the focus on how margins and profitability trends develop from here.

    See our full analysis for Nederman Holding.

    With the headline numbers in place, the next step is to see how this earnings release compares with the prevailing narratives around growth, valuation and margin quality, and where those views may need updating.

    See what the community is saying about Nederman Holding

    OM:NMAN Revenue & Expenses Breakdown as at Jul 2026
    OM:NMAN Revenue & Expenses Breakdown as at Jul 2026

    Margins and net profit under pressure

    • On a trailing twelve month basis, Nederman Holding generated SEK 5,556.5 million in revenue and SEK 245 million in net income, which works out to a net margin of 4.4%, compared with 4.9% the year before.
    • Critics highlight that this slimmer 4.4% margin sits alongside weaker operating cash flow coverage of debt, and that challenges the bullish idea that margin improvements will easily follow revenue growth.
      • Analysts expect earnings to grow 21.7% per year while revenue is forecast to grow 5.3% per year, so a large part of the bullish case leans on better profitability rather than faster top line expansion.
      • With debt not well covered by operating cash flow over the last 12 months, bears argue that any hit to margins could matter more than usual for the balance sheet.

    Q2 earnings trend versus recent quarters

    • Quarterly net income, excluding extra items, was SEK 53.9 million in Q2 2026 compared with SEK 46.3 million in Q1 2026 and SEK 65.2 million in Q4 2025, while basic EPS over those three quarters moved from 1.86 SEK to 1.31 SEK and then to 1.54 SEK.
    • The consensus narrative points to growing demand in areas such as air quality, green steel and recycling, and sees that as a support for earnings, yet the recent sequence of EPS figures shows a more mixed pattern.
      • Service and digital offerings are expected to help margins over time, but the latest trailing net income of SEK 245 million is below the SEK 296.1 million figure cited in the consensus view for today, which raises a timing question for that story.
      • Investors following this narrative may want to see whether recurring service revenue and production efficiency gains are enough to shift EPS closer to the SEK 9.56 level analysts project for the longer term.
    To see how community views connect these numbers to Nederman Holding's longer term story and valuation, check out the 📊 Read the what the Community is saying about Nederman Holding..

    Valuation gap versus growth expectations

    • At a share price of SEK 126, Nederman Holding trades below both the DCF fair value of about SEK 173.60 and an analyst price target of SEK 155.00, and at a P/E of 18x versus 21.9x for peers and 20x for the wider European Building industry.
    • Supporters of the bullish view point out that this discount lines up with forecasts for 21.7% yearly earnings growth, yet the trailing 4.4% net margin and weak debt coverage mean the current multiples are still being asked to carry execution risk.
      • The stock is described as trading about 27.4% below the DCF fair value and at lower P/E multiples than peers, which aligns with the idea of valuation support if earnings targets are reached.
      • At the same time, the major risk flagged is that operating cash flow does not comfortably cover debt, and an unstable dividend history adds another factor for investors who focus on income stability.

    Next Steps

    To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Nederman Holding on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

    Given the mix of concerns and potential rewards around Nederman Holding, now is a good time to review the data yourself and pressure test the investment case against the 3 key rewards and 2 important warning signs.

    See What Else Is Out There

    Nederman Holding’s thinner 4.4% net margin, relatively weak operating cash flow coverage of debt and mixed recent EPS trend suggest the balance sheet is carrying meaningful pressure.

    If those balance sheet concerns make you uneasy, it is worth checking stocks with stronger financial footing using the solid balance sheet and fundamentals stocks screener (416 results) to quickly spot alternatives that appear sturdier.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.