VBG Group (OM:VBG B) has reported Q2 2026 revenue of SEK1.48b and basic EPS of 3.58 SEK, alongside trailing twelve month EPS of 16.41 SEK and net income of SEK410.4m that reflect steady profitability over the period. The company has seen quarterly revenue move from SEK1.36b in Q2 2025 to SEK1.48b in Q2 2026, while basic EPS across recent quarters has ranged between 3.58 SEK and 4.58 SEK, giving investors a clear read on how earnings are tracking through the cycle. With a trailing net profit margin of 7.4%, the latest numbers present a picture of solid, if measured, profitability that keeps margins firmly in focus for investors.
See our full analysis for VBG Group.With the key figures on the table, the next step is to see how these results line up against the main bullish and bearish narratives that have formed around VBG Group and where those stories might need updating.
See what the community is saying about VBG Group
Margins Hold Steady Around 7.4% Net
- Over the last 12 months, VBG Group converted SEK5,537.4m of revenue into SEK410.4m of net income, giving a 7.4% net profit margin that sits just below the prior 7.5% reference point but still pairs with trailing EPS of 16.41 SEK.
- Consensus narrative points to cross selling from acquisitions and geographic expansion as supports for margins, yet the flat margin profile around 7.4% shows that, so far, profitability is stable rather than accelerating. This leaves the bullish view on future margin expansion still to be proven by the numbers.
- Analysts reference gross margins above 32% and plans for EBITDA margin expansion, while net income over the past four quarters has held between SEK376.9m and SEK460.4m. This highlights that integration benefits and FX headwinds are largely offsetting each other at the bottom line.
- The consensus expectation that profit margins could move higher contrasts with the small step down from 7.5% to 7.4%, so investors watching the bullish story may focus closely on whether upcoming quarters show any clear uplift in net margin.
Moderate 4.5% Earnings Growth Versus Faster Bull Case
- VBG Group’s earnings grew 4.5% over the past year and have compounded at 6.3% per year over five years, which is below the 16.5% annual earnings growth currently embedded in analyst forecasts.
- Bulls argue that higher volumes from new markets and acquisitions can push earnings toward SEK647.8m by around 2029, yet the recent 4.5% growth and trailing 12 month net income of SEK410.4m show a more measured trajectory that investors may compare carefully with those optimistic targets.
- Consensus narrative highlights improving order intake and geographic expansion, while trailing revenue of SEK5,537.4m and net margin of 7.4% imply that any step up toward the forecast 10.3% margin would need a visible shift from today’s earnings run rate.
- The analysts’ target of 23.65 SEK EPS by about 2029 versus current trailing EPS of 16.41 SEK underlines the gap between actual delivery and bullish expectations, which readers can use to judge how much execution risk they are comfortable with.
Valuation Gap, Cash Flow Strain On Dividend
- At a share price of SEK322.0, VBG Group trades on a trailing P/E of 19.6x, below both the Swedish Machinery industry average of 28.1x and the peer average of 29.1x. The share price also sits 52.1% below a DCF fair value estimate of SEK672.20, while offering a 2.25% dividend yield that is not well covered by free cash flow.
- Bears focus on cash generation and capital demands, arguing that weak free cash flow coverage of the 2.25% dividend, together with integration costs and higher working capital, can limit flexibility even if valuation multiples and DCF fair value suggest upside on paper.
- Critics highlight that acquisition related spending and higher accounts receivable are weighing on operative cash flow, which complicates the picture when trailing 12 month earnings of SEK410.4m appear solid but do not fully convert into cash for dividends and reinvestment.
- The contrast between a DCF fair value of SEK672.20 and a consensus price target of SEK435.00 against today’s SEK322.0 share price gives valuation support, yet the cash flow strain on the dividend means income focused investors may pay closer attention to how quickly earnings translate into cash in upcoming periods.
Next Steps
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for VBG Group on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.
Given the mix of optimism and caution around VBG Group, it makes sense to check the underlying data yourself and decide how convincing each side really is. If you want a clear summary of the key risks and potential rewards investors are talking about, start with these 4 key rewards and 1 important warning sign.
See What Else Is Out There Beyond VBG Group
VBG Group shows a mix of modest earnings growth, stable but flat margins, and weaker free cash flow coverage of its dividend that may concern income focused investors.
If you want dividend income backed by stronger cash generation, now is a good time to check stocks in the 469 dividend fortresses that may offer more dependable payouts.
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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