Incap Group Maintains Strong Profitability Amid Softer Market Conditions in January–September 2025 (Unaudited)

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In its unaudited business review, Incap Group reported revenue of EUR 159.3 million and operating profit of EUR 18.4 million for the first nine months of 2025, demonstrating solid profitability and operational resilience despite market uncertainties, currency fluctuations, and project delays.

July–September 2025 highlights

• Revenue for the third quarter of 2025 amounted to EUR 51.8 million (7–9/2024: EUR 61.8 million). Year-on-year decrease was 16.2%.
• Adjusted operating profit (EBIT) was EUR 5.8 million (EUR 8.1 million) or 11.1% of revenue (13.1%). Year-on-year decrease was 28.9%.
• Operating profit (EBIT) amounted to EUR 6.7 million (EUR 7.9 million) or 13.0% of revenue (12.8%). Year-on-year decrease was 14.7%.
• Net profit for the period was EUR 4.3 million (EUR 4.9 million).
• Earnings per share were EUR 0.14 (EUR 0.17). 

January–September 2025 highlights

• Revenue amounted to EUR 159.3 million (1–9/2024: EUR 170.8 million). Year-on-year decrease was 6.7%.
• Adjusted operating profit (EBIT) amounted to EUR 18.1 million (EUR 21.3 million) or 11.4% of revenue (12.5%). Year-on-year decrease was 14.9%.
• Operating profit (EBIT) amounted to EUR 18.4 million (EUR 20.6 million) or 11.5% of revenue (12.1%). Year-on-year decrease was 10.8%.
• Net profit for the period was EUR 8.9 million (EUR 15.0 million).
• Earnings per share were EUR 0.30 (EUR 0.51).
• Unless otherwise stated, the comparison figures refer to the corresponding period in 2024. This business review is unaudited.
• Outlook for 2025

Incap estimates that its revenue for 2025 will be EUR 210–230 million and operating profit (EBIT) will be EUR 23–29 million.

The estimates are given provided that unexpected events impacting Incap’s business environment do not occur, for example, in the availability of components.

Otto Pukk, President and CEO of Incap Corporation

As expected, the third quarter reflected the full impact of the challenges we outlined earlier this year related to uncertainties in the markets – the impacts of tariffs, customer project delays, and currency rate fluctuations.

Our Q3 revenue reached EUR 51.8 million, which is below last year’s level (EUR 61.8 million). Part of the decline in revenue was related to changes in the Indian rupee and the US dollar, but the postponements and lower demand from some customers also continued to affect our performance.

Thanks to our continued focus on operational efficiency and cost discipline, our profitability remained strong, with EBIT reaching 13.0 per cent of revenue and adjusted EBIT reaching 11.1 per cent of revenue. We have worked hard to defend our relative profitability and maintain it in double digits, even during slower periods in some of our units.

Throughout the quarter, our teams demonstrated resilience and commitment, which helped us navigate the softer demand environment. I want to sincerely thank all our employees for their dedication and teamwork during this challenging phase.

Looking ahead, we are seeing signs of improvement in our business. Our Q4 pipeline looks promising, and we expect some improvements in the coming months. We will continue to monitor global developments closely and respond with agility.

Across our global operations, we continued to invest in new technology and capacity. Incap India made a decision to invest in a new flying probe test system and a full SMT (Surface-Mount Technology) line upgrade. The investment will increase production capacity and improve operational efficiency. Incap Slovakia completed a major digitalization milestone with the rollout of ERP and MES platform, improving traceability, increasing inventory accuracy, and reducing material errors.

Key initiatives to strengthen the sustainability of our operations included the installation of solar panels and the decision to invest further in solar power. The rooftop solar panels installed in the UK are expected to supply nearly half of the unit’s electricity needs. Incap US advanced its sustainability agenda with a decision to invest in on-site solar power plant, using the support from federal clean energy tax incentives and aiming to transition fully to renewable electricity at Incap US operations.

Additionally, Incap US is finalizing new ISO certifications, aligning its environmental and safety standards with the rest of our group. We also progressed in our sustainability work with internal and external audits and finalizing our annual review of Double Materiality Assessment. These initiatives reflect our commitment to responsible operations and long-term competitiveness.

We remain committed to delivering long-term value to our shareholders and continue to explore M&A opportunities. As a part of this commitment, we have further elaborated our M&A strategy. We currently see more activity in the M&A market with many interesting targets in new markets and segments that would support our longer-term ambitions. With a solid financial foundation and a clear vision, we are well-positioned to pursue growth both organically and through carefully considered strategic acquisitions.