Nederman earnings remained below year-earlier levels in the third quarter of 2026, even as order intake increased approximately 12% on a currency-neutral basis. In its October 21 earnings discussion, management described improving customer activity and a stronger backlog, but said weak orders earlier in the year were still weighing on sales and profit.
Key Takeaways
- Orders strengthened across all four divisions, led by 32% growth in process technology.
- Third-quarter EBITA fell to SEK 131 million from SEK 166 million a year earlier, despite sequential improvement.
- Larger process-technology orders will take time to reach revenue, with much of the biggest order extending into 2027.
Table of Contents
- Nederman earnings trail the recovery in orders
- Process technology faces a longer delivery cycle
- Service growth supports margins, with a qualification
- Divisional performance remains uneven
- Conclusion
Nederman earnings trail the recovery in orders
The third quarter delivered Nederman’s highest quarterly sales and strongest profitability of 2026 so far. Both measures nevertheless remained below the same period in 2025, reflecting the delayed effect of weak order intake at the start of the year.
The distinction between orders and recognized sales is central to the update. A stronger order book improves visibility, but does not immediately restore revenue or margins, particularly in businesses with longer project delivery schedules.
Management also described operating cash flow as strong and said it contributed to lower net debt. CFO Matthew Cusick said market momentum was clearly stronger than 12 months earlier. CEO Sven Kristensson expressed confidence that the momentum could continue, while declining to make a promise.
| Item | Details |
|---|---|
| Process technology profitability | Q3 adjusted EBITDA margin of 7.4%. |
| Duct and filter organic growth | 8.1% in Q3 2026. |
| Duct and filter sales | SEK 219 million, up 7.6%. |
| Duct and filter profitability | Adjusted EBITDA margin of 19.9% in Q3 and 19.3% year to date. |
| Thomasville warehouse automation | Planned for completion by the end of Q2 2027. |
Process technology faces a longer delivery cycle
Process technology recorded its strongest order-intake quarter of the year, supported by one large order and several medium-sized contracts. Management highlighted demand in the Americas and India, alongside continued aftermarket growth.
Profitability remained constrained by lower sales volume and an unfavorable sales mix. A greater contribution from service helped, but a higher proportion of fibre and textile business weighed on the comparison with the traditionally more profitable European foundry and smelter business.
Cusick said the division’s fourth-quarter backlog was better than a year earlier and that Q4 ought to be stronger. However, most revenue from the largest individual order, received in mid-summer, will extend into 2027. Kristensson put normal delivery times at six to nine months.
Service growth supports margins, with a qualification
Service and aftermarket activities now represent around 23% of group sales. Cusick cautioned that the share partly reflects solutions sales being below the desired level, rather than service growth alone. Management nevertheless wants aftermarket revenue to grow faster than solutions over time because it is the most profitable part of the business.
The Nederman SAVE airflow-control product sits alongside management’s broader push into energy-saving products, retrofit kits and monitoring capabilities. Kristensson said the company is also adding on-site sales capabilities for industries including semiconductors, oil and gas, and petrochemicals in the United States.
Semiconductor opportunities remain at an early stage. Cusick confirmed one Asian order during the quarter, with no sales contribution yet. Kristensson described potential annual revenue in the tens of millions of Swedish kronor if the initiative succeeds, not a completed revenue stream or firm forecast.
Divisional performance remains uneven
Duct and filter technology benefited from stronger orders, higher sales volume and manufacturing and logistics efficiency investments in North America and Europe.
Monitoring and control technology faced costs associated with establishing its Asian presence and lower sales in its traditionally profitable EMEA region. Portable units also remained under pressure from reduced public spending, particularly in the United States.
In extraction and filtration technology, stronger base business in EMEA and APAC and the return of some larger American orders supported intake. Sales reached their highest quarterly level of the year but remained below Q3 2025 after very weak orders in January and February.
Conclusion
The next test for Nederman earnings is whether the stronger backlog converts into sales and profit. Management expects a better fourth quarter in process technology than a year earlier, while the largest order’s revenue contribution will extend into 2027.
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