Knowit earnings for the third quarter of 2026 showed improved profitability despite flat sales and a smaller workforce. The Nordic consultancy reported adjusted EBITA of SEK 81.7 million, up from SEK 62.5 million a year earlier, in its October 23 results discussion. Management also outlined a country-led restructuring expected to deliver SEK 100 million in annual savings, with full effect from the third quarter of 2027.
Key Takeaways
- Adjusted EBITA margin rose to 6.7% from 5.1%, while sales slipped 0.2%.
- The restructuring targets SEK 100 million in annual savings and carries an estimated SEK 70 million cost.
- Demand remains uneven, with defense supporting recruitment while telecommunications and some Nordic markets remain difficult.
Table of Contents
- Knowit earnings improve without a return to sales growth
- Country-led restructuring brings costs before full savings
- Products leads margins as consulting demand stays uneven
- Lower debt leaves options, but execution takes priority
- Conclusion
Knowit earnings improve without a return to sales growth
Knowit’s third-quarter results announcement put net sales at SEK 1,219 million. Revenue was broadly unchanged despite 7% fewer employees, with management attributing the margin improvement to higher utilization, disciplined cost control and increased hourly rates.
The adjusted EBITA margin widened by 1.6 percentage points. However, reported sales included a positive currency effect of 3%, meaning exchange rates supported the revenue comparison rather than signaling stronger underlying demand.
The figures show improved profitability from the existing business, but not yet a return to growth. Management said increased sales activity and Norway’s stronger performance contributed to the quarter, while conditions elsewhere remained mixed.
| Item | Details |
|---|---|
| Solutions | Q3 2026 sales: SEK 613 million; EBITA margin: 9.3%. |
| Experience | Q3 2026 sales: SEK 222 million; margin: 5.0%. |
| Connectivity | Q3 2026 sales: SEK 129 million; margin: 8.2%. |
| Insight | Q3 2026 sales: SEK 185 million; adjusted EBITA margin: 2.1%. |
| Products | Q3 2026 sales: SEK 82 million; EBITA margin: 16.2%. |
Country-led restructuring brings costs before full savings
Effective October 1, 2026, Knowit’s consulting operations are managed and reported through Sweden, Norway, Finland and Denmark, with Products remaining a separate business area. Chief Executive Fredrik Walde Ekerhovd said the structure is intended to move decisions closer to clients, clarify accountability and reduce organizational complexity.
CFO Marie Björklund said the expected savings mainly involve overlapping roles and personnel costs, alongside a review of legal entities. Management aims to make the changes without significantly affecting revenue.
Savings are expected to build gradually, reaching their full annual effect in the third quarter of 2027. Just over half of the estimated SEK 70 million restructuring charge is expected to be recognized in 2026, with the remainder in 2027. Björklund did not provide a quarterly breakdown and said cost and savings estimates would be updated in quarterly reports.
Products leads margins as consulting demand stays uneven
Products benefited from smart mobility and defense demand. Its combination of proprietary platforms and consultancy services offers scope to reuse solutions and scale revenue. The other business areas showed a wider range of profitability in the quarter.
Connectivity continued to face difficult telecommunications markets and slower client commitments. Insight returned from a loss, but management cautioned that short-duration assignments limit visibility and that profitability still needs improvement.
Norway contributed strongly overall, although Experience remained challenging there. Finland continued to face weak market conditions. Management did not expect group net recruitment to turn positive in the fourth quarter; hiring strength was concentrated mainly in defense and cybersecurity.
The public sector accounted for 43% of revenue, up from 39% a year earlier. Some retail, services and industrial assignments were postponed, while management highlighted opportunities as clients move from AI pilots toward broader implementation.
Lower debt leaves options, but execution takes priority
Net debt fell to SEK 519 million from SEK 608 million a year earlier. Net debt to EBITDA stood at 1.1 times, or zero when IFRS lease liabilities were excluded.
Management said improving operations and delivering the restructuring take priority over acquisitions. Selective acquisitions, buybacks and dividends remain options under discussion, rather than newly announced commitments.
Conclusion
Knowit’s next confirmed reporting milestone for the transformation is the publication of pro forma figures for the country-led structure during the fourth quarter, before year-end 2026. Those figures should provide a clearer basis for tracking performance under the new organization, while quarterly updates will track restructuring costs and savings.
Read More News
Disclaimer
This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.
Comments
Be respectful. No spam, impersonation or private credentials. Ordinary posts and comments appear immediately; suspicious links are held for review.
Please wait…