Interim Report January 1–September 30, 2026

Addnode Group posts strong Q3 earnings, secures record contract, and completes US AI acquisition.

What the company is saying

Addnode Group reports a significant improvement in third-quarter earnings, attributing gains to organic growth, acquisitions, and efficiency measures. The company highlights a 10% increase in net sales to SEK 1,438 million, with 3% from organic growth and SEK 17 million in positive currency effects. Management, led by President and CEO Johan Andersson and CFO Kristina Elfström Mackintosh, emphasizes the signing of its largest-ever software contract—a ten-year, SEK 100 million deal with the City of Stockholm. The acquisition of the AI-enabled SpaceIntel platform in the USA is presented as a strategic move to bolster innovation and future growth. The announcement projects confidence, referencing expected renewals of three-year agreements in 2027 to support continued organic growth. The tone is factual and positive, with detailed period-over-period comparisons and no overstated claims.

What the data suggests

The disclosed numbers show a clear and substantial improvement in financial performance. Net sales for Q3 2026 rose 10% year-on-year to SEK 1,438 million, with organic growth contributing 3%. EBITA increased sharply to SEK 250 million from SEK 149 million, and the EBITA margin improved to 17.4% from 11.4%. Operating profit more than doubled to SEK 159 million, and net profit also doubled to SEK 109 million. Earnings per share before and after dilution rose to SEK 0.80 from SEK 0.40. Cash flow from operating activities swung from a negative SEK -64 million to a positive SEK 9 million. The company secured a ten-year, SEK 100 million contract with the City of Stockholm and completed the acquisition of SpaceIntel in the USA. Addnode Group now employs 3,000 people across 20 companies in 20 countries, with 2025 net sales reported at SEK 5.8 billion. The data quality is high, with transparent period comparisons and specific contract and acquisition details. The only forward-looking element is the expectation of further contract renewals in 2027.

Analysis

The announcement is highly factual and proportionate to the disclosed results. Nearly all key claims are realised and supported by detailed numerical data, including net sales, EBITA, operating profit, net profit, margins, EPS, and cash flow, with clear period-over-period comparisons. The only forward-looking statement is the expectation of future contract renewals in 2027, which is explicitly identified as an expectation rather than a realised event. Major operational milestones, such as the signing of a ten-year contract and the completion of an acquisition, are described as completed, not aspirational. There is no evidence of exaggerated language or narrative inflation; the tone is positive but justified by the strong financial and operational performance. No large capital outlay is paired with only long-dated, uncertain returns—benefits from acquisitions and contracts are already being realised.

Risk flags

• ●Integration risk arises from the acquisition of the AI-enabled SpaceIntel platform in the USA. Merging new technologies and teams can disrupt operations or dilute focus if not managed well, especially across geographies.
• ●Sustaining organic growth may prove challenging, as only 3% of the 10% sales increase was organic. The rest was driven by acquisitions and currency effects, suggesting future growth could slow if acquisition opportunities diminish.
• ●Long-term contract execution risk exists with the ten-year, SEK 100 million City of Stockholm deal. Delivering consistent value over such a long period requires ongoing performance and adaptability to client needs.
• ●Currency fluctuations remain a factor, with SEK 17 million in positive effects this quarter after a negative SEK -50 million last year. Future swings could impact reported results, especially given Addnode Group's global footprint.

Bottom line

Addnode Group delivered a strong third quarter, with double-digit sales growth, sharply higher margins, and a positive swing in cash flow. The company is executing on both organic and acquisition-driven strategies, as shown by the SpaceIntel purchase and the record SEK 100 million Stockholm contract. The financial disclosures are detailed and credible, with all major claims backed by hard numbers. While integration and long-term contract delivery present real risks, the current trajectory is positive and the benefits are already visible in the results. Investors should focus on how well Addnode sustains organic growth and manages new acquisitions. The most important takeaway is that Addnode is translating strategy into tangible financial gains, not just future promises.

Announcement summary

(LSE:0GMG) Addnode Group reported significant earnings improvement for the third quarter ended September 30, 2026, driven by organic growth, acquisitions, and enhanced efficiency. Net sales for the third quarter increased by 10 percent to SEK 1,438 million, compared to SEK 1,311 million in the prior year period, with organic growth accounting for 3 percent. Currency effects impacted net sales by SEK 17 million, compared to -50 million previously. EBITA rose to SEK 250 million from SEK 149 million, with currency effects contributing SEK 3 million versus -4 million in the prior year. The EBITA margin increased to 17.4 percent from 11.4 percent. Operating profit grew to SEK 159 million from SEK 74 million, corresponding to an operating margin of 11.1 percent, up from 5.6 percent. Net profit for the period increased to SEK 109 million from SEK 54 million. Earnings per share before and after dilution increased to SEK 0.80, compared to SEK 0.40 in the prior year. Cash flow from operating activities improved to SEK 9 million, compared to -64 million previously. During the quarter, Addnode Group secured its largest contract to date for its own software, signing a ten-year agreement with the City of Stockholm worth approximately SEK 100 million. The company also acquired the AI-enabled SpaceIntel software platform in the USA. Addnode Group has 3,000 employees and consists of around 20 companies with a presence in 20 countries across five continents. Net sales in 2025 amounted to SEK 5.8 billion. No significant events have occurred since the end of the reporting period. Johan Andersson is President and CEO, and Kristina Elfström Mackintosh is CFO of Addnode Group.

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