Kreate Group Oyj (HLSE:KREATE) has put up a busy Q2 2026, with revenue of €186.2 million and basic EPS of €0.65, backed by trailing twelve month revenue of €473.0 million and EPS of €1.31, alongside earnings growth of 135.9% over the past year. Over recent quarters the company has seen revenue move from €73.5 million in Q2 2025 to €94.7 million in Q3 2025 and €94.5 million in Q4 2025, before reaching €97.6 million in Q1 2026 and €186.2 million in Q2 2026. Quarterly EPS tracked from €0.14 to €0.31, then €0.28, €0.09 and finally €0.65. With net profit margins for the last year at 2.4% compared with 1.7% the prior year, these results focus attention on whether improving profitability can sustain investor confidence in the current earnings trajectory.
See our full analysis for Kreate Group Oyj.With the latest numbers in place, the next step is to see how this earnings profile lines up against the dominant market narratives around Kreate Group, and which of those stories the data now supports or calls into question.
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EPS Swing Shows How Project Mix Matters For Kreate Group
- Basic EPS moved from €0.31 in Q3 2025 to €0.09 in Q1 2026 and then €0.65 in Q2 2026, while net income shifted from €2.7 million to €0.8 million and then €5.7 million over the same quarters, which shows how earnings for Kreate Group can shift sharply with project timing and margins.
- Bears argue that a contractor with project based revenue is exposed to lumpier profitability, and the pattern here gives them some support, as EPS over the last six quarters has ranged between €0.01 and €0.65 while trailing net profit margin for the last year is only 2.4% compared with 1.7% the prior year, even though revenue over the trailing twelve months reached €473.0 million.
- Critics highlight that five year average earnings growth of 0.4% per year sits well below the recent 135.9% year over year jump, which suggests the latest surge may not reflect a long history of similar growth.
- At the same time, the move in margin from 1.7% to 2.4% shows that even small changes in profitability levels can have a large impact on quarterly EPS for Kreate Group when revenues are in the hundreds of millions.
2.4% Net Margin Tests The Bullish Growth Story
- Over the last twelve months Kreate Group produced €11.5 million of net income on €473.0 million of revenue, which corresponds to a 2.4% net profit margin compared with 1.7% the prior year and sits alongside trailing EPS of €1.31.
- Bulls focus on the 135.9% year over year earnings growth and forecasts for 12.8% annual earnings growth and 8.1% annual revenue growth, and the margin data partly backs that up but also limits it, because EPS over the trailing twelve months rose from €0.80 to €1.31 while net income moved from €7.0 million to €11.5 million, which still leaves the business operating on fairly thin profitability.
- Supporters point to revenue moving from €278.97 million to €473.04 million over the trailing windows provided, which lines up with the growth driven narrative, yet the net margin remains in the low single digits, not a high margin profile.
- What stands out is that the trailing twelve month EPS series climbs from €0.56 to €1.31, which heavily supports the bullish case that recent contracts and execution have been accretive, while the modest 2.4% margin reminds investors that even strong revenue periods still leave limited room for error in profitability.
Valuation Tension Between 22.5x P/E And DCF Fair Value
- Kreate Group trades on a P/E of 22.5x compared with peer and European Construction industry averages of 11.4x and 15.3x, while a DCF fair value of €41.33 sits above the current €29.50 share price, which is about 28.6% below that modelled value.
- What is interesting for investors is how this mix checks against the more balanced narrative that improving financials support sentiment but do not remove risk, as the richer P/E multiple lines up with the strong trailing earnings growth of 135.9% and 8.1% forecast annual revenue growth, while the same analysis flags high debt, recent insider selling and share price volatility as factors that could justify the stock trading below DCF fair value.
- Supportive signals include trailing twelve month EPS of €1.31 and revenue of €473.0 million, which can help explain why the market is willing to pay 22.5x earnings even though that is above sector averages.
- On the other side, the pattern of significant insider selling in the last three months and high leverage in the capital structure gives weight to concerns that a premium P/E and a DCF fair value of €41.33 do not fully capture financing and ownership risks around the €29.50 share price.
Next Steps
Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Kreate Group Oyj's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.
After considering the mix of optimism and concern around Kreate Group, it can be helpful to act promptly and test the story against your own expectations by reviewing the balance of 3 key rewards and 3 important warning signs.
See What Else Is Out There Beyond Kreate Group
Kreate Group operates on thin 2.4% net margins with earnings that move sharply between quarters and a premium 22.5x P/E. This valuation sits alongside high debt and insider selling.
If that mix of tight profitability and financing risk feels uncomfortable, you may want to look at companies with stronger cushions by running the solid balance sheet and fundamentals stocks screener (419 results).
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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