Atea (ATEA) Q1 2026 earnings summary

Executive summary

• Gross sales grew 11.5% year-over-year to NOK 14.8 billion, with net revenue up 12.9% to NOK 9.7 billion.

• EBIT reached NOK 476 million, up from NOK 281 million, including a NOK 152 million gain from the AppXite SIA sale; adjusted EBIT was NOK 324 million, up 15.4% year-over-year.

• Net profit after tax rose to NOK 389 million from NOK 162 million, a 140.4% increase, and EPS rose to NOK 3.50 from NOK 1.45.

• Hardware sales surged 18.9%, driven by strong PC and data center equipment demand; software and cloud sales increased 9.1%.

• All geographies reported increased sales and EBIT, with strong hardware and public sector demand.

Financial highlights

• Gross profit increased 6.0% to NOK 2,843 million, but gross margin declined to 29.5% from 31.4% due to a higher hardware mix.

• Operating expenses rose 4.9% to NOK 2,519 million.

• Cash flow from operations was an outflow of NOK 447 million, improved from NOK 881 million outflow last year, reflecting normal seasonality and higher profitability.

• Free cash flow was negative NOK 554 million, up from negative NOK 984 million year-over-year.

• Net financial position stood at NOK 187 million, with a liquidity reserve of NOK 6,081 million.

Outlook and guidance

• High order backlog supports forecast for strong sales and EBIT growth in Q2 2026, though visibility for the second half is limited.

• Hardware supply constraints and rising prices are expected to persist, with inventory increases in Q2 temporarily impacting cash flow.

• Management expects continued strong demand, leveraging scale and partnerships to mitigate supply chain risks.

• Continued sales growth and operating profit expansion expected through higher-margin products and scaling of expenses.

• Price increases in memory and potential delivery delays expected to persist, but management is confident in handling challenges.