Troax Group (TROAX) Q1 2026 earnings summary

Executive summary

• Record order intake in Q1 2026, up 18% year-over-year to EUR 82 million, mainly driven by acquisitions, while organic order intake declined 5% due to weak demand in key segments and regions.

• Net sales increased by 5% to EUR 71.8 million, with acquisitions contributing 20% to net sales, but organic sales fell 13–14% due to ramp-up issues and lower volumes.

• Profitability was impacted by low volumes and restructuring, with adjusted EBITA margin dropping to 10.1% from 14.0% and EPS at EUR 0.07, down from EUR 0.10.

• Market conditions remain soft but showed sequential improvement, especially in warehousing and North America.

• Integration of recent acquisitions, including Vichnet, and ongoing transformation in North America and Europe are expected to improve profitability in H2 2026.

Financial highlights

• Adjusted EBITA was EUR 7.2 million, down from EUR 9.5 million year-over-year, with margin at 10.1%.

• Gross margin remained stable year-over-year at 37.2% and improved sequentially from Q4.

• Operating/free cash flow was EUR 4.5 million, reflecting seasonal weakness and higher working capital needs.

• Net debt/EBITDA increased to 2.7x, above the long-term target of 2.5, mainly due to acquisitions and lower rolling EBITDA.

• Investments totaled EUR 37.6 million, mainly for acquisitions and US machinery.

Outlook and guidance

• Management expects improved profitability in H2 2026 as integration and transformation projects are completed.

• Market conditions remain uncertain, but demand is showing signs of recovery, especially in warehousing and North America.

• Backlog in the U.S. expected to be delivered mainly in Q2, with some spillover into Q3.

• Strategy for profitable growth remains unchanged, focusing on leveraging acquisitions and operational efficiency.

• Long-term target of EBITA margin above 20% maintained.