NCAB Group (OM:NCAB) Stock Q2 EPS Surge Reinforces Bullish Margin Narrative

NCAB Group (OM:NCAB) has posted its Q2 2026 numbers with revenue of SEK 1.2 billion, Basic EPS of SEK 0.45 and net income of SEK 84.3 million. The company has seen quarterly revenue move from SEK 934.0 million in Q2 2025 to SEK 1,168.7 million in Q2 2026, while Basic EPS over the same quarters shifted from SEK 0.22 to SEK 0.45, giving investors clear line of sight on the top line and per share results as they weigh the latest update. With trailing net margin higher year over year and profitability now better supported by recent earnings trends, investors can focus on how durable these margins look against the growth story.

See our full analysis for NCAB Group.

With the latest figures on the table, the next step is to see how these results line up against the prevailing market and community narratives around NCAB Group, and where the numbers challenge those views.

See what the community is saying about NCAB Group

NCAB margin at 6.7% on trailing basis

• Over the last 12 months, NCAB Group converted SEK 4,093.9 million of revenue into SEK 272.6 million of net income, which works out to a 6.7% net margin compared with 5.1% a year earlier.
• Consensus narrative points to higher margin PCB work in areas like aerospace, defense and other complex applications as a key support. The move from a 5.1% to 6.7% net margin fits that view, although:
  • Reported earnings grew 48.3% year on year on this trailing basis, while the same data set shows a 7.3% annual decline over five years, so the recent margin level does not erase the longer term earnings pressure.
  • Quarterly net income has gone from SEK 40.3 million in Q2 2025 to SEK 84.3 million in Q2 2026, which is consistent with stronger profitability but also raises the question of how much is cyclical recovery versus structural margin improvement.

EPS trend and growth expectations for NCAB Group

• On a trailing 12 month basis, Basic EPS is SEK 1.46, compared with quarterly EPS of SEK 0.45 in Q2 2026 and SEK 0.22 in Q2 2025, showing that recent quarters are contributing a higher share of that earnings run rate.
• Bulls argue that expansion into higher value PCB segments and acquisitions can sustain growth, and the data supports part of that case, but with important caveats:
  • Earnings are reported to have grown 48.3% over the last year and analysts expect earnings to grow around 26.6% per year, which lines up with the idea of a growing earnings base if NCAB keeps winning complex projects.
  • The same data also highlights that earnings declined at about 7.3% per year over five years, so the bullish view relies on the more recent EPS trend from SEK 0.22 to SEK 0.45 per quarter being a better guide than the longer history.

On this kind of earnings trajectory, investors who agree with the growth case often want to see how far the bullish thesis really goes compared with today’s numbers 🐂 NCAB Group Bull Case

Rich 53.4x P/E and high debt worry bears

• NCAB Group trades on a trailing P/E of 53.4x, well above the European Electronic industry at 20.1x and peers at 27.5x, while the current share price of SEK 77.9 sits below a DCF fair value of SEK 93.64, so investors are weighing a high multiple against a higher modelled value.
• Bears focus on valuation and balance sheet risk, and the numbers give them material points to work with:
  • The high P/E multiple means the stock is priced more expensively than the sector on current earnings, at the same time as the company carries what the analysis flags as a high level of debt on its balance sheet.
  • Even though the DCF fair value of SEK 93.64 is above the market price, the combination of a 53.4x earnings multiple, five year earnings decline and leverage helps explain why more cautious investors focus on downside sensitivity if growth or margins soften.

For readers weighing those valuation and debt concerns, it can help to see how the cautious narrative frames downside risk against the latest Q2 numbers 🐻 NCAB Group Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for NCAB 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 caution around NCAB Group, it makes sense to look at the underlying data yourself, stress test the story against your own expectations, and then weigh up the 3 key rewards and 1 important warning sign.

See What Else Is Out There Beyond NCAB Group

While NCAB Group has a higher trailing net margin and recent EPS improvement, the rich 53.4x P/E, five year earnings decline and higher debt level leave valuation and risk as key pressure points.

If those concerns make you uneasy, you can quickly compare NCAB Group with companies where balance sheet strength and resilience are front and center by checking the solid balance sheet and fundamentals stocks screener (421 results).

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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