Alimak Group (OM:ALIG) Stock Faces Margin Squeeze Challenging Earnings Growth Narrative
Alimak Group (OM:ALIG) has reported Q2 2026 revenue of SEK 1,762 million and net income of SEK 167 million, with basic EPS at SEK 1.58. The trailing twelve months show revenue of SEK 6,765 million, net income of SEK 550 million and EPS of SEK 5.20. Over the past year, the company has seen quarterly revenue range between SEK 1,653 million and SEK 1,792 million, with basic EPS moving between SEK 0.97 and SEK 1.74. This context sets the backdrop for how investors may interpret the latest results. With the trailing net margin now lower than a year ago and earnings growth expectations still a key focus, this set of results places profitability and margin trends firmly in the spotlight.
See our full analysis for Alimak Group.With the headline numbers on the table, the next step is to see how they align with the main market and community narratives around Alimak Group, highlighting where the story is reinforced and where expectations may need adjustment.
See what the community is saying about Alimak Group
Margins Softening, Even As Alimak’s Top Line Holds Steady
- Over the last twelve months, Alimak Group’s net profit margin was 8.1%, compared with 10.1% a year earlier, while trailing revenue was SEK 6,765 million and net income SEK 550 million.
- Analysts' consensus view sees higher margin potential over time, and the recent margin slip sits alongside mixed signals:
- Consensus commentary points to growing demand for higher margin services and maintenance. However, the trailing margin at 8.1% is lower than the 10.1% level cited a year earlier, which pushes investors to question how quickly those service revenues might influence reported profitability.
- The same consensus highlights cost efficiency programs and restructuring work. The current margin profile shows that, for now, reported earnings are still feeling the effect of weaker areas like Facade Access and legacy projects.
DCF Fair Value Of SEK 199.97 Versus SEK 125 Share Price
- The stock trades at SEK 125.00 compared with a DCF fair value of SEK 199.97, while the P/E of 24.1x sits below the Swedish Machinery industry average of 28.1x yet slightly above the peer average of 23.2x.
- Critics highlight that valuation support may not fully offset earnings risk, and the numbers give both sides material to work with:
- On one hand, the DCF fair value of SEK 199.97 suggests upside relative to the current SEK 125.00 price. This lines up with the view that recurring, higher margin service revenues and acquisitions could support higher long term earnings than the latest 8.1% margin alone implies.
- On the other hand, the P/E sitting only slightly above peers at 24.1x while trailing net income of SEK 550 million is lower than the SEK 716 million level reported in the earlier trailing period means bears can argue that the lower recent profitability is already part of how the market is weighing that DCF figure.
Earnings Growth Track Versus Recent Setback
- Over the past five years, EPS growth is reported to have averaged 17.6% per year, and earnings are forecast to grow about 19% per year, yet the most recent twelve months showed net income of SEK 550 million compared with SEK 716 million in an earlier trailing period and a margin decline from 10.1% to 8.1%.
- Consensus narrative points to structural growth drivers, and the current figures help frame how durable that growth might be:
- Growing order intake in industrial and infrastructure areas and higher margin service work are cited as reasons to expect earnings resilience. This is consistent with the multi year EPS growth profile of 17.6% a year and revenue forecasts of about 5.4% a year versus a Swedish market forecast of a 1.7% revenue decline.
- At the same time, the drop in trailing net income from SEK 716 million to SEK 550 million and the margin move from 10.1% to 8.1% highlight that cyclical pressure in construction and weaker divisions can still interrupt that trajectory, so investors are weighing long term growth drivers against the recent setback.
Next Steps
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Alimak Group 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 optimism and concern around Alimak Group, it makes sense to check the data yourself and move quickly to form your own view. To see how the balance of positives and risks stacks up in one place, take a closer look at the 2 key rewards and 1 important warning sign.
See What Else Is Out There Beyond Alimak Group
Alimak Group’s softer net margins, lower trailing net income versus an earlier period, and uneven dividend record all suggest that profitability and income reliability are under pressure.
If you are concerned about that weaker earnings profile and want stocks where financial resilience is front and center, start comparing ideas using the 291 resilient stocks with low risk scores.
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.
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