Hiab Oyj (HLSE:HIAB) Stock Faces Margin Decline As Q2 EPS Undercuts Bullish Growth Narrative
Hiab Oyj (HLSE:HIAB) has posted Q2 2026 revenue of €403.3 million with basic EPS of €0.54, setting the tone for investors watching how the business is translating its order book into bottom line results. The company has seen quarterly revenue move from €402 million and EPS of €0.67 in Q2 2025 to €403.3 million and EPS of €0.54 in Q2 2026, while trailing 12 month revenue sits at €1.5 billion and EPS at about €1.95. This frames a picture where top line scale is solid but margins are doing more of the work than headline growth. Overall, Hiab Oyj’s latest print points to a story where profit quality and margin resilience matter more than one off boosts to earnings.
See our full analysis for Hiab Oyj.With the headline numbers on the table, the next step is to set these results against the most widely held narratives around Hiab Oyj to see which stories the data backs up and which ones start to crack.
See what the community is saying about Hiab Oyj
Margins and profit trend under the microscope
- On a trailing 12 month basis, Hiab Oyj has net income of €126.1 million on €1.5b of revenue, which equates to an 8.2% net margin compared with 9.6% a year earlier according to the supplied margin data.
- Consensus narrative points to higher margin potential over time through eco products and services. Yet the current 8.2% trailing margin sits below last year’s 9.6%, so:
- Eco portfolio sales are reported up 24% year over year and now 35% of total sales, and the growing base of 48,000 connected units and 20,000 service contracts aligns with the idea of higher margin, recurring revenue.
- At the same time, the five year trailing earnings trend shows an average decline of about 4.6% per year and the most recent trailing year recorded lower earnings, which contrasts with the bullish view that efficiency projects alone are already flowing cleanly through to stronger profitability.
Revenue growth vs profit pressure
- Quarterly revenue has moved from €346.4 million in Q3 2025 to €403.3 million in Q2 2026, while quarterly net income excluding extra items went from €29.0 million to €34.7 million over the same span, and over the trailing 12 months revenue is €1.5b with net income of €126.1 million.
- Bears focus on softening demand in some regions and pressure on high margin markets, and the figures give mixed signals here:
- Forecasts in the risk and reward summary point to revenue growing about 13% per year and earnings around 29.6% per year, which supports the idea that Hiab Oyj can still grow its top line and profits even with some regions under pressure.
- However, the trailing margin slip from 9.6% to 8.2% and five year earnings decline of about 4.6% per year show that recent history has not matched those stronger forward growth assumptions, giving bears data to point to when they question how durable the growth story is.
High P/E, DCF fair value gap
- Hiab Oyj trades on a trailing P/E of about 30.3x compared with 21.4x for the wider European Machinery industry and 19x for peers, while the supplied DCF fair value is €95.27 against a current share price of €59.20.
- What stands out is how the bullish and cautious views both have something to grab onto in this split valuation picture:
- Supporters can point to the DCF fair value of €95.27 being well above the €59.20 share price and to forecast earnings growth of roughly 29.6% per year, which together back the idea that the current price does not fully reflect the projected profit path.
- Critics highlight that the premium 30.3x P/E sits above both industry and peer averages and that trailing earnings have declined about 4.6% per year over five years, so the higher multiple today is being applied to a backward looking earnings profile that has not grown in line with those stronger forecasts.
Next Steps
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Hiab Oyj on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.
Seeing both risks and rewards around Hiab Oyj in these results, it makes sense to check the details yourself and not rely on a single narrative. To weigh the concerns alongside the potential upsides, start with the 2 key rewards and 1 important warning sign.
See What Else Is Out There
Hiab Oyj combines a premium 30.3x P/E with slipping margins and a five year earnings decline, so the current valuation rests on forecasts rather than recent profit momentum.
If you are uneasy about paying up for that kind of story, it is worth checking companies that pair strong fundamentals with more modest pricing through the 237 high quality undervalued stocks.
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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