Q1 2026 Kitron ASA Earnings Call Transcript
Key Points
- Kitron ASA (STU:KP5) reported its strongest quarter ever with revenue close to $273 million, up almost 66% year-on-year.
- Operating profit more than doubled to close to $26 million, with a margin of 9.4%, exceeding the company's core target.
- The order backlog reached nearly $806 million, a new record, and increased by 54% year-on-year, with a book-to-bill ratio of 1.35.
- All five market sectors experienced growth, with defense and aerospace revenue more than tripling, now representing around half of group revenue.
- The company successfully integrated the Delta Nordic acquisition, contributing positively from day one and enhancing capabilities and customer base.
- Despite exceeding the margin target, Kitron ASA (STU:KP5) fell short of its internal margin expectations due to operational inefficiencies.
- Supply chain issues, including late deliveries, impacted capacity and efficiency, affecting the production mix, particularly in the Nordics and North America.
- Operating cash flow decreased to $5 million from $12.1 million in the previous year, due to high growth absorbing working capital.
- The company faced challenges with the introduction and training of many new employees, which affected operational efficiency.
- Seasonal softness is expected in Q3, which could impact quarterly revenue cadence despite a strong backlog.
Good morning, and welcome to Kitron's Q1 2026 results presentation. I'm Peter Nilsson, and I'm joined, as always, by our CFO, Cathrin Nylander.
Thank you for taking the time to be with us today.
The theme for today's call is in the slide in front of you, From Record to Runway.
Q1 was the strongest quarter in our history. And that's important. But what's more important is what it tells us about the year and the years ahead.
So while we'll walk you through the numbers in detail, I want you to leave this call thinking less about Q1 itself and more what's lining up behind it.
I'll cover the quarter highlights, our operational position, sector and backlog trends, and the strategic outlook. Cathryn will then take you through the financials in detail.
After that, I'll close with what we believe is the most important slide in the deck, the case for a medium-term ambition.
We'll then open the floor for your questions. So with that, let's get started.
Next slide, please.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
