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Audax Renovables (BME:ADX) Stock Grapples With Shrinking Profits Despite Revenue Growth

Simply Wall St · 1d ago

Audax Renovables heads into this earnings season with a stock that has drifted lower for months, yet still carries a rich P/E of 41.4x and trades well above a discounted cash flow estimate of €0.18. That gap between price and intrinsic value thinking was already stretching nerves. The fresh Q2 release tightens the screws further. Net income from continuing operations over the last twelve months sits at €14.731m on €1.870b of revenue, leaving a slim 0.6% net margin and weak interest coverage. The focus at the moment is not on growth; it is on a profit squeeze colliding with an already demanding valuation.

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Q2 2026 Earnings Summary

  • Revenue (Q2 2026 vs Q2 2025): €405.455m vs €374.425m (up about 8.3%)
  • Net Income (Excl. Extra Items, Q2 2026 vs Q2 2025): €1.764m vs €6.842m (down about 74.2%)
  • Basic EPS (Q2 2026 vs Q2 2025): €0.003964 vs €0.015183 (down about 73.9%)
  • Trailing 12M Net Margin (to Q2 2026 vs prior year): 0.6% vs 2.2% (margin compression with thinner profitability on €1.870b of revenue)

Prefer clean, visual charts instead of dense earnings tables and raw figures on Audax Renovables? See a clear overview of how this business is valued today with an easy-to-scan breakdown in our company report for Audax Renovables.

BME:ADX Trailing 12-Month Revenue & Expenses Breakdown as at Sep 2026
BME:ADX Trailing 12-Month Revenue & Expenses Breakdown as at Sep 2026

Audax Renovables and the cautious bullish angle

For anyone leaning optimistic on Audax Renovables, the story hangs on resilience rather than breakout performance. Revenue reached €405.455m in Q2 2026 compared with €374.425m a year earlier, so the top line is still moving in the right direction. The energy transition theme is intact and the business continues to convert a very slim profit, with €14.731m of net income over €1.870b of sales. That keeps the green utility narrative alive, even if the income statement shows little room for error.

Profit squeeze keeps the bearish worries alive

The harsher read focuses on earnings pressure. Net income excluding extra items in Q2 2026 fell sharply to €1.764m from €6.842m, with basic EPS sliding from €0.015183 to €0.003964. Trailing net margin now sits at 0.6% compared with 2.2%, which points to much weaker profitability on a bigger revenue base. With interest coverage already described as weak and the stock down over the last 90 days, concerns around thin cushions in a volatile power and retail market remain firmly in play.

Compare internal progress at Audax Renovables with external expectations. See the consensus price target analysis for Audax Renovables to check how current analyst targets line up with the latest Q2 profit squeeze and the €1.112 share price.

Take Control Of Your Next Move

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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.