NCAB earnings for the third quarter of 2026 showed order intake rising 166% to SEK 2.62 billion, far outpacing sales as customers ordered ahead amid material shortages and rising prices. Results released on October 23 put net sales at SEK 1.46 billion, up 54%, with higher revenue helping lift profitability despite pressure on gross margins.
Key Takeaways
- Forward ordering and higher prices accounted for most of the increase in organic order intake.
- Higher sales strengthened operating profitability, although purchasing costs and currencies weighed on margins.
- Orders exceed current deliveries, but management expects supply constraints to persist into 2027.
Table of Contents
- NCAB earnings separate underlying growth from advance buying
- Sales growth lifts profitability despite purchasing pressure
- Delivery timing stretches into 2027
- Australian agreement extends the expansion plan
- Conclusion
NCAB earnings separate underlying growth from advance buying
The printed circuit board supplier’s Q3 2026 interim results announcement showed a book-to-bill ratio of 1.79, meaning orders received substantially exceeded sales during the quarter. Comparable-unit order intake rose 155% in both Swedish kronor and US dollars.
Chief Executive Peter Kruk estimated that forward orders contributed approximately 80 percentage points of that organic increase, while higher prices contributed about 50 percentage points. The distinction matters: the headline order surge does not represent an equivalent increase in underlying demand.
NCAB nevertheless reported positive underlying development, supported by industrial automation, defence and energy infrastructure for data centres. Comparable-unit sales increased 45% in US dollars, and sales grew across all segments.
During the earnings discussion, management said unusually strong forward ordering could continue for several months or quarters before diminishing. That could reduce reported order intake as customers finish placing advance orders, even if the underlying business remains healthy.
| Item | Details |
|---|---|
| Q3 EBITA | SEK 210.8 million, versus SEK 110.1 million a year earlier |
| Q3 EBITA margin | 14.4%, versus 11.6% |
| Q3 operating cash flow | SEK 176.8 million, versus SEK 118.3 million |
| Q3 profit after tax | SEK 129.8 million, versus SEK 60.9 million |
| Q3 earnings per share | SEK 0.69 before and after dilution, versus SEK 0.33 |
Sales growth lifts profitability despite purchasing pressure
Revenue growth improved productivity and spread fixed costs across a larger sales base, allowing EBITA to rise faster than sales. However, gross margin slipped to 34.8% from 35.2% because NCAB had not fully passed higher purchasing costs through to customers.
Currency movements reduced quarterly EBITA by SEK 8 million and its margin by approximately 0.5 percentage points. Management said maintaining gross margin within a 35%–36% range remained the aim, rather than a guaranteed fourth-quarter outcome.
Operating cash flow improved year on year. The company’s results announcement said working capital remained stable compared with the preceding quarter, despite the much higher level of activity.
Delivery timing stretches into 2027
The results announcement said supply conditions were not expected to improve until late 2027 at the earliest. Investment in data centres and broader industrial growth have increased competition for materials, lengthened lead times and encouraged customers to bring orders forward.
In the earnings discussion, management put average lead times at about two quarters, although some quick-turn orders are delivered within the same quarter. December’s shorter delivery window can also push shipments into January, separating the timing of order growth from revenue recognition.
The chief financial officer said large North American orders associated with data centres exceeded SEK 200 million, with deliveries scheduled largely for 2027. Kruk clarified that these involved electrical infrastructure rather than specifically data-centre products.
Management said it saw no signs of customers placing duplicate orders with competing suppliers. It described the products as bespoke designs and the orders as firm, while acknowledging that some customers could be building inventory.
Australian agreement extends the expansion plan
NCAB signed an agreement on September 16 to acquire the business of IMP Electronics Solutions in Adelaide, Australia. The announcement described the agreement as a step toward expanding local operations into new markets; it did not establish that the transaction had completed.
Board Shark PCB, acquired in the second quarter, contributed positively to US sales, order intake and EBITA during the third quarter.
Conclusion
NCAB’s next delivery periods will show how the enlarged order book converts into revenue. The key distinction remains between underlying growth and advance buying, with major North American infrastructure orders scheduled largely for 2027 and purchasing-cost recovery still a management priority.
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