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Absolent Air Care Group (OM:ABSO) Stock Faces Margin Pressure As Net Margin Slips To 6.3%

Simply Wall St · 2d ago

Absolent Air Care Group (OM:ABSO) has posted Q2 2026 revenue of SEK 328.972 million and basic EPS of SEK 2.38, with trailing 12 month EPS at SEK 7.78 and net income of SEK 87.963 million framing the latest quarterly print. Over recent quarters the company has seen revenue move from SEK 314.403 million in Q2 2025 to SEK 350.501 million in Q4 2025, then to SEK 311.775 million in Q1 2026 and SEK 328.972 million in Q2 2026. Basic EPS shifted from SEK 1.71 in Q2 2025 to SEK 1.59 in Q4 2025, SEK 2.04 in Q1 2026 and SEK 2.38 in Q2 2026, setting up this release as a key check in on how margins are holding up through the cycle.

See our full analysis for Absolent Air Care Group.

With the latest numbers on the table, the next step is to see how this earnings profile lines up with the prevailing Absolent Air Care Group narratives that investors have been following over the past year.

Curious how numbers become stories that shape markets? Explore Community Narratives

OM:ABSO Revenue & Expenses Breakdown as at Jul 2026
OM:ABSO Revenue & Expenses Breakdown as at Jul 2026

Margins under pressure with 6.3% net margin

  • Over the last 12 months Absolent Air Care Group has generated SEK 1,292.596 million in revenue and SEK 87.963 million in net income, which works out to a 6.3% net margin compared with 7.9% in the prior year.
  • Bears focus on this margin slip as a key concern, and the data gives them some support, with trailing EPS over the last five years declining on average 9.4% per year while net margin over the last 12 months is lower than the prior year, even though Q2 2026 net income of SEK 26.903 million is above Q2 2025 net income of SEK 19.333 million.
    • This combination of weaker long term EPS trend and margin compression contrasts with the recent quarter where revenue of SEK 328.972 million and EPS of SEK 2.38 sit near the top of the recent range.
    • Critics highlight that for the bearish view to ease, investors may want to see the 6.3% net margin move closer to or above the earlier 7.9% level on a sustained basis.

Q2 EPS of SEK 2.38 supports growth story

  • Across the last five quarters, Absolent Air Care Group’s Basic EPS has moved from SEK 1.14 in Q1 2025 to SEK 1.71 in Q2 2025, SEK 1.76 in Q3 2025, SEK 1.59 in Q4 2025, SEK 2.04 in Q1 2026 and SEK 2.38 in Q2 2026, while trailing 12 month EPS stands at SEK 7.78.
  • Bulls argue that this pattern backs the forecast that earnings can grow about 15.4% per year, and the recent figures give them talking points, even though the five year EPS trend shows an average 9.4% annual decline.
    • What stands out for the bullish side is that net income has stepped up from SEK 12.853 million in Q1 2025 to SEK 26.903 million in Q2 2026, which is consistent with the stronger trailing 12 month net income of SEK 87.963 million versus SEK 70.165 million at Q4 2025.
    • At the same time, the longer term EPS decline and the lower 6.3% net margin mean the bullish view leans heavily on those forward earnings growth forecasts rather than the backward looking averages.

Bulls who see Q2’s EPS and net income as a turning point will want to test that view against a full breakdown of how Absolent Air Care Group’s forecasts and valuation fit together in the wider market story. 📊 Read the what the Community is saying about Absolent Air Care Group.

P/E premium versus peers and DCF gap

  • At a share price of SEK 212, Absolent Air Care Group trades on a trailing P/E of 29.9x, above the European Building industry average of 20x and the peer average of 19x, while the DCF fair value is stated at SEK 432.77.
  • What is striking for valuation focused investors is the tension between a premium P/E and a DCF that sits much higher than the current price, which means both bullish and bearish arguments lean heavily on how future earnings play out.
    • Supporters of the bullish angle point to forecast revenue growth of about 7% per year and earnings growth of about 15.4% per year as justification for paying a higher multiple than the sector.
    • Those taking a more cautious stance highlight that the weaker trailing net margin of 6.3% and the 9.4% annual decline in EPS over five years show that the premium P/E is being applied to a business with softer historical profitability, even if the DCF fair value of SEK 432.77 suggests upside versus today’s SEK 212 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 Absolent Air Care Group'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.

Given the mixed signals around Absolent Air Care Group’s margins and valuation, it makes sense to look at the data first hand and move quickly to your own conclusion. To see what investors are optimistic about right now, review the 2 key rewards

See What Else Is Out There

Absolent Air Care Group combines a 6.3% net margin, a five year EPS decline of 9.4% per year and a premium 29.9x P/E despite softer historical profitability.

If that mix of compressed margins and a premium multiple leaves you cautious, you may wish to widen your search to companies in the 227 high quality undervalued stocks that pair stronger value signals with more appealing earnings profiles.

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.