IN Brief:
- July–September revenue reached €80.7 million, up 56% year on year, with organic growth of 18%.
- Comparable EBITA increased to €8.6 million, while the margin eased from 11.1% to 10.7%.
- Incap expects full-year revenue of €270–290 million and continues managing PCB availability and customer-mix pressures.
Incap recorded third-quarter revenue of €80.7 million, an increase of 56% from €51.8 million a year earlier, as its electronics manufacturing services business expanded through acquisition and stronger customer demand. The Finnish-listed group reported 18% organic revenue growth for July to September, supported by work for existing customers and new projects. Its acquisition of the Lacon Group in February added further scale, while defence customers contributed to the increase in orders and production activity.
Comparable earnings before interest, taxes and amortisation (EBITA) rose to €8.6 million from €5.8 million, an increase of 50.3%. The corresponding margin was 10.7% of revenue, compared with 11.1% a year earlier. Operating profit, measured as EBIT, increased to €7.9 million from €6.7 million, although the operating margin fell from 13% to 9.7%. The different measures reflect both the expansion of the business and the need to distinguish underlying performance from accounting and acquisition-related effects.
Revenue had been €74.2 million in the second quarter, so the July–September result also represented sequential growth of 8.9%. Comparable EBITA increased from €6.5 million to €8.6 million over the same period. Net profit reached €6.9 million, against €4.3 million in the third quarter of 2025, although Incap said the reassessment of an acquisition-related earn-out contributed to that increase. The net-profit comparison therefore combines operating performance with an accounting effect linked to the transaction.
Across the first nine months of 2026, revenue reached €210.9 million, up 32.4% from €159.3 million in the corresponding period of 2025. Organic growth over the nine-month period was 4.6%, below the third-quarter rate. Comparable EBITA for the nine months increased to €20.3 million from €18.1 million, but its share of revenue fell to 9.6% from 11.4%. Operating profit remained at €18.4 million, illustrating the different effect of volume, acquired operations and cost structure on the reported measures.
The acquisition of Lacon Group, completed on 19 February and consolidated from 20 February, added manufacturing operations in Germany and Romania. Incap already operated internationally, with activity across Finland, Estonia, India, Slovakia, the UK, the US and Hong Kong. Its electronics manufacturing services cover engineering and production across several customer sectors, including industrial automation and defence. Acquired capacity can support additional programmes, but transferring a design into repeatable production still requires qualified components, an approved manufacturing process and delivery coordination with the customer.
Component supply remained an operating constraint during the quarter. Incap specifically identified continuing difficulties in the availability of some electronic components and printed circuit boards, despite managing deliveries through coordination with customers and suppliers. A PCB assembly line requires the right set of boards and parts to arrive together; a shortage of one qualified item can interrupt production even when the rest of a bill of materials is available. Substituting another component may also require design review or customer approval, particularly in controlled industrial and defence applications.
Growing production volumes also tied up more net working capital and weighed on operating cash flow. Electronics manufacturers often purchase components and boards before the finished assemblies are invoiced and paid for, with inventory and work in progress increasing during a production ramp. Incap’s higher sales consequently did not translate into an identical improvement in cash generation. The Lacon transaction also changed the group balance sheet and introduced purchase-accounting effects into its reported earnings.
The group highlighted mixed conditions in India, where competitive pricing remains intense and its largest customer is diversifying suppliers. That change is expected to put pressure on volumes, while new large customer accounts — including data-centre-related applications — are being ramped up. Industrial automation, defence and power applications for data centres are among the areas where Incap reports active business opportunities. The outlook depends on the timing of customer programmes and on how successfully volume from new accounts offsets any reduction from established ones.
Incap retained its estimate of €270–290 million in full-year revenue and €26–29 million in comparable EBITA, provided that unexpected events do not disrupt its operating environment. An updated strategy is due at the company’s capital markets day on 17 November. The next reporting period will show how PCB and component supply, the changing Indian customer mix and the ramp-up of new accounts affect production volumes, margins and working capital.
