Norrhydro Group Q3’26 flash comment: Profitability clearly exceeded our expectations
Summary
- Norrhydro Group's Q3 revenue was 6.6 MEUR, aligning with expectations, while profitability significantly exceeded forecasts due to revenue growth and cost-saving measures.
- EBITDA doubled to 1.05 MEUR from the previous year, and EBIT increased to 0.73 MEUR, surpassing estimates, with a material margin rising to 55%.
- The company maintained its 2026 guidance, expecting revenue of 30-32 MEUR and EBITDA of 3-4 MEUR, though revenue may remain at the lower end of the range.
- Despite market uncertainties, the company noted stabilization in the technology industry and progress in NorrDigi's commercialization efforts.
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Translation: Original published in Finnish on 10/21/2026 at 09:25 am EEST
| Estimates | Q3'25 | Q3'26 | Q3'26e | Difference (%) | 2026e | |
| MEUR / EUR | Comparison | Actualized | Inderes | Act. vs. Inderes | Inderes | |
| Revenue | 6.1 | 6.6 | 6.6 | 0 % | 29.7 | |
| EBITDA | 0.52 | 1.05 | 0.51 | 105 % | 3.1 | |
| EBIT | 0.20 | 0.73 | 0.20 | 271 % | 1.9 | |
| PTP | -0.09 | 0.53 | -0.05 | 1107 % | 0.9 | |
| EPS (adj.) | -0.01 | 0.05 | 0.00 | 1971 % | 0.09 | |
| Revenue growth-% | 36 % | 8 % | 7.9 % | 2.6 pp | 3 % | |
| EBIT-% (adj.) | 3.3 % | 11.2 % | 3.0 % | 8.2 pp | 6.4 % |
Source: Inderes
Norrhydro Group reported its Q3 interim report today. Q3 revenue grew in line with our expectations, whereas the bottom-line figures were clearly stronger than we expected. According to the company, the improvement in profitability was driven by revenue growth, as well as implemented savings and productivity measures. The company reiterated its guidance for 2026. We see reaching the EBITDA guidance as quite probable, but revenue is likely to remain near the lower end of the guidance range. Overall, we consider the big picture of the report to be positive due to the strong earnings performance.
Growth at the expected good level
Norrhydro Group's Q3 revenue was 6.6 MEUR, up 8% year-on-year (in line with our estimate). The company stated that business returned to normal levels during Q3 after a weak Q2. Q3’s order intake also increased from the previous year. The company reports that it has secured new customers and gained share in some of its customers' procurement. In the January-September period, the mining, defense, and recycling sectors have grown, whereas in other segments, the demand situation has been at the level of the comparison period or lower.
EBITDA doubled from the comparison period
EBITDA for Q3 was 1.05 MEUR, doubling from the comparison period (Q3’25: 0.52 MEUR). The same applied to EBIT, which grew to 0.73 MEUR (Q3'25: 0.20 MEUR). The earnings lines clearly exceeded our estimates, as we expected earnings at the level of the comparison period, which we considered good. The material margin rose to as much as 55% (Q3’25: 50%) when we expected 48%. The company stated that the earnings improvement consisted of revenue growth as well as savings and productivity measures. In our view, the savings and productivity improvements have targeted manufacturing rather than fixed costs. The company has succeeded in paying down debt significantly over the past year, thanks to strong earnings performance (net debt decreased by 1.8 MEUR y-o-y). At the same time, the cash position is relatively tight due to, among other things, growth tying up working capital.
Guidance unchanged
The company reiterated its guidance and continues to expect 2026 revenue of 30-32 MEUR (2025: 28.7 MEUR) and reported EBITDA of 3-4 MEUR (2025: 2.65 MEUR). This would in practice require Q4 revenue growth of 11-36% y-o-y (our latest estimate is 8%) and an EBITDA of 0.61-1.61 MEUR (our latest estimate 0.84 MEUR Q4'25: 0.91 MEUR). Thus, we estimate that the guidance for EBITDA is likely to be met, while there is some uncertainty regarding the revenue guidance.
The company describes the market as still uncertain (e.g. geopolitics, energy and financing costs), while on the other hand seeing stabilization in the technology industry. As for NorrDigi, commercialization is apparently progressing through prototype deliveries, sales negotiations, and testing work, although the company has not yet received customer orders of significant size.