Impact Coatings earnings turned positive in the third quarter of 2026 as net sales more than doubled to SEK 36.5 million from SEK 15.2 million a year earlier. The results, released on October 21, showed net income of SEK 3.6 million, although operating cash flow remained negative and recovered-metal sales accounted for a substantial part of revenue.
Key Takeaways
- Machine deliveries and higher recovered-metal sales helped lift quarterly revenue and operating profit.
- Management said net income remained positive even without recovered-metal sales.
- Negative operating cash flow and moderate order intake tempered the quarterly improvement.
Table of Contents
- Impact Coatings earnings improve as costs fall
- Recovered metals account for a large share of sales
- Cash generation and new orders remain constraints
- Energy opportunities contrast with slow automotive demand
- Conclusion
Impact Coatings earnings improve as costs fall
Third-quarter operating profit reached SEK 3.8 million, compared with a loss of SEK 12.1 million in the same period of 2025. The gross margin held steady at 56%, while personnel costs fell to SEK 9.4 million from SEK 12.7 million.
The improvement therefore combined a larger sales base with lower staffing costs, rather than a higher quarterly gross margin. Full-time equivalents stood at 43 at quarter-end, down from 54 a year earlier.
The profitable quarter did not erase earlier losses. For January–September 2026, the operating loss narrowed to SEK 20.3 million from SEK 41.9 million, while the nine-month gross margin rose to 58% from 52%.
| Item | Details |
|---|---|
| Reporting period | Third quarter of 2026; results released October 21, 2026. |
| New paying customers | Five added in Q3, versus 11 in Q2; 18 added year-to-date. |
| China subsidiary sales | SEK 1.7 million in Q3 and SEK 4.4 million in January–September. |
| Nine-month investments | Cash outflow of SEK 1.8 million. |
| Industrial-partner process | An adviser has been appointed; management is seeking strategic synergies as well as capital. |
Recovered metals account for a large share of sales
Coating systems generated SEK 16.6 million of third-quarter sales, mainly from machine sales to HA Wave. Coating services contributed SEK 17.8 million, including SEK 9.0 million of recovered-metal sales, compared with SEK 1.4 million a year earlier. Aftermarket sales added SEK 2.1 million.
Recovered metals represented roughly one-quarter of total quarterly revenue. Chief Financial Officer Lena Aberg said their margin was slightly below 30% and explained that sales fluctuate because purchases and returns occur at different times under a new supplier agreement.
Management said quarterly net income was positive both with and without recovered-metal sales. That distinction matters when assessing the profit improvement, although the timing-sensitive metal revenue should not be treated as a steady quarterly contribution.
Cash generation and new orders remain constraints
Operating cash flow was negative SEK 4.0 million in the quarter, despite positive cash flow of SEK 6.0 million before working-capital changes. The gap shows that the return to accounting profit did not translate into positive operating cash generation after working-capital movements.
For January–September, operating cash outflow narrowed to SEK 20.7 million from SEK 36.1 million. Cash at period-end was SEK 14.1 million, compared with SEK 37.4 million at the end of 2025. The company raised a SEK 4 million short-term loan during the third quarter after repaying a SEK 5 million loan in the first quarter.
Quarterly order intake was SEK 9.5 million, which management described as moderate. That was well below the quarter’s recognized revenue, making subsequent order conversion an important measure of whether the stronger sales performance can continue.
Energy opportunities contrast with slow automotive demand
Chief Executive Officer Jonas Nilsson said the company had secured 2026 system orders in three of its four target segments: energy, consumer goods and electronics. Automotive remained the gap, with European customers showing limited need for additional capacity.
The company also won an IC2000 order from a Romanian research institute in the fourth quarter. In Shanghai, Nilsson said the coating service center was using overtime near the limit of single-shift capacity; a second shift would depend on order volumes.
Separately, the company’s August 13 announcement of its LT Metal catalytic-electrode collaboration described demonstrated iridium oxide coatings on titanium porous transport layers for PEM electrolyzers. The partnership aims to commercialize components that reduce iridium use; it does not establish a timetable for earnings contributions.
Conclusion
Impact Coatings’ third-quarter profit marked a clear improvement, but cash generation and order intake remained weaker than the headline sales result. Following the confirmed fourth-quarter IC2000 order, the next operating updates will show how the order pipeline and working-capital needs develop.
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.
