NOTE walked into Q3 2026 earnings with a bruised chart and a cheaper P/E, after the share price slipped about 15% over the past week and 12% over the month to close at SEK154.10 today. The headline result was solid electronics manufacturing revenue of about SEK1,057m and basic earnings per share of SEK1.99. On the surface those numbers look steady, yet the real story sits in sentiment. A stock that has quietly re rated lower is now clashing with a business showing firm profitability, and that gap is where emotions are doing most of the trading.
Like the earnings profile at NOTE but uneasy about how sentiment has dragged the share price down so quickly? Take a look at list of solid balance sheet and fundamentals stocks (204 results).
Q3 2026 Earnings Summary
- Revenue (Q3 2026 vs Q3 2025): SEK1,057m vs. SEK830m (reported growth of about 27%)
- Net Income (Q3 2026 vs Q3 2025): SEK57m vs. SEK54m (modest uplift in profit)
- Basic EPS (Q3 2026 vs Q3 2025): SEK1.99 vs. SEK1.90 (slight improvement in earnings per share)
- Trailing Net Profit Margin (Last 12 Months vs Prior Year): 6% vs. 7% (profitability ratio has edged lower year over year)
Prefer clear visuals instead of scrolling through pages of raw earnings tables for NOTE? See the full financial picture, including valuation trends, in the company report for NOTE.
Evaluating Whether NOTE’s Capacity Story Is Delivering
The bullish pitch around NOTE leans heavily on using spare plant capacity and a richer Security & Defense mix to lift profit quality.
"The underused production footprint after doubling capacity in Torsby, creating sizable expansion room in Lund and planning to almost double Hyvinkää, leaves NOTE at roughly 60% floor utilisation."
Q3 output of about SEK1,057m with an underlying 9.3% operating margin, plus Security & Defense revenue jumping very sharply with 19% organic growth, shows that extra factories are now feeding higher volumes. Western Europe delivered 10.5% margin, which points to better utilisation starting to work, even if Medtech softness and weaker Rest of World temper the overall uplift.
One Narrative has put a figure on that disagreement. → See the Narrative with its higher Fair Value, assumptions and all.
NOTE Bear Case: Capacity And Costs Still Under Scrutiny
The bearish view argues that NOTE’s growth machine leans too hard on bolt on deals and that overheads will squeeze profitability if organic traction stays low.
"While the acquisitions of STI and Kasdon give NOTE a larger presence with defence customers in the UK and are forecast to increase sales at these units, the wider group has recently reported modest or declining organic growth."
Q3 shows 27% reported expansion but only 2% organic, which keeps that concern alive. Western Europe benefits from acquired defence assets, while Rest of World sales declined. The underlying margin of 9.3% sits below the full year target range and higher inventories are already weighing on cash generation.
Hunt For Quiet Mispricings
NOTE shows how earnings strength and a shifting share price can pull in different directions. The real opportunity is finding stocks that could be undervalued before the market corrects them.
- Company 1 - 24% below our estimate - focuses on extracting higher margins from refineries while expanding into retail outlets and flexible petrochemicals output.
- Company 2 - 41% below our estimate - converts a strong backlog in large infrastructure and high tech building work into earnings while trimming weaker housing projects and managing property sales.
- Company 3 - 31% below our estimate - grows a services platform based on long term maintenance contracts across essential assets while using solid cash conversion to pursue disciplined bolt on deals.
Those are three of them. See all 196 potentially undervalued companies →
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