KONCAR - Elektroindustrija (KOEI) Q2 2026 earnings summary

Executive summary

• Achieved record profitability and highest sales in group history for H1 2026, driven by strong global demand for power infrastructure and electrical equipment, with robust international and domestic performance.

• Order intake exceeded EUR 1 billion in H1 2026, backlog surpassed EUR 2.9 billion, ensuring high revenue visibility and supporting future growth.

• Major new contracts signed, including with Croatian Railways, TenneT in Germany, and continued expansion in key European markets.

• Ongoing investments in capacity, including new factories, laboratories, and strategic acquisitions, as well as a significant credit arrangement with EBRD, IFC, and major Croatian banks.

• Power transmission and distribution remained the key growth driver, while power generation and digital solutions segments posted significant growth.

Financial highlights

• Sales income for H1 2026 reached EUR 745 million, up 14% year-over-year; export revenue rose 13.4%.

• EBITDA increased 24% to EUR 173 million; net profit rose 33% to EUR 171 million; EBITDA margin at 23.9%, net profit margin at 24%.

• Operating profit (EBIT) was EUR 157.5 million, up 24.5% year-over-year; operating margin improved to 21.7%.

• Book-to-bill ratio at 1.4, indicating strong future revenue visibility.

• Market capitalization at EUR 2.6 billion, up 95% year-over-year.

Outlook and guidance

• Sales for 2026 expected to exceed the previously announced EUR 1.4 billion, with EUR 823 million in backlog revenue planned for the year.

• Over EUR 1.1 billion already contracted for 2027, providing a stable base for future growth.

• High backlog and strong order intake provide full coverage of the 2026 sales plan and a solid base for 2027 and beyond.

• Continued investments in people, technology, and production capacity to meet growing demand from global electrification and energy transition trends.

• Management remains cautious about sustaining current high profitability due to rising competition and narrowing supply-demand gap.