NCAB Group Posts 25% Q2 Revenue Increase Fueled by AI Data Centre Demand and Board Shark Acquisition

NCAB’s Market Position and Business Model in Global PCB Distribution

NCAB Group AB, listed in Sweden, distributes printed circuit boards essential to industries including aerospace, defence, medtech, consumer electronics, and increasingly AI and data centres. Operating through a global network of top PCB manufacturers, NCAB acts as a key intermediary ensuring reliable supply chains and technical support for end customers.

The company’s strategic edge lies in securing prioritized allocations from manufacturing partners, who value NCAB’s consistent and high-volume orders. This priority is critical amid supply constraints, as manufacturers allocate limited capacity to trusted partners. NCAB’s access to vital raw materials further differentiates it from smaller competitors. The company serves Nordic, European, North American, and East segments, diversifying revenue streams and mitigating regional economic fluctuations.

Q2 Revenue Growth Driven by AI Data Centre Expansion and Supply Constraints

For the quarter ending 30 June 2026, NCAB reported net sales of SEK 1,167.5 million, up 25% from SEK 934.0 million in Q2 2025. In USD terms, growth accelerated to 30%, reflecting currency benefits. Excluding acquisitions, net sales rose 20% in SEK and 24% in USD, indicating strong organic growth.

The surge is attributed to extended lead times and rising prices amid global PCB market constraints, intensified by production shifts toward AI data centres. Geopolitical tensions in the Middle East have further tightened raw material availability. NCAB’s strong factory relationships and material access have enabled it to attract new customers facing unreliable supply chains. Continued robust order intake linked to data centre demand underscores sustained growth in this sector.

Order Intake Jump and Book-to-Bill Ratio Indicate Strong Revenue Visibility

Q2 order intake reached SEK 1,569.9 million, a 59% increase from SEK 985.0 million a year earlier, with a 66% rise in USD. Comparable order intake grew 52% in SEK and 58% in USD, reflecting solid demand. The resulting book-to-bill ratio of 1.34 signals strong future revenue prospects.

CEO commentary reveals that 58% organic USD order intake growth includes roughly 20% market price increases and nearly 20% pre-buying effects, with the remainder representing double-digit volume growth. Pre-buying, driven by customer anticipation of price hikes and lead time extensions, contributed significantly to order intake. Investors should watch for normalization of pre-buying as supply chains improve.

EBITA Margin Growth and Operational Leverage Amid FX Challenges

NCAB’s EBITA rose 48% to SEK 138.6 million in Q2 from SEK 93.9 million last year, with margin expanding to 11.9% from 10.0%. Foreign exchange headwinds lowered EBITA by SEK 10 million and margin by about 0.8 percentage points. Transaction costs of SEK 7.3 million related to the Board Shark acquisition also impacted EBITA, compared to SEK 0.6 million in the prior year.

For H1 2026, EBITA increased to SEK 266.8 million from SEK 193.9 million, maintaining an 11.9% margin versus 10.2% previously. FX reduced EBITA by SEK 40 million and margin by 0.5 percentage points. Transaction costs totaled SEK 8.2 million. The consistent margin improvement reflects disciplined cost management and operational leverage amid rapid revenue growth.

Profit After Tax and EPS Reflect Enhanced Profitability

Operating profit for Q2 rose 57% to SEK 122.9 million from SEK 78.3 million, while profit after tax more than doubled to SEK 84.4 million from SEK 40.5 million. Earnings per share before and after dilution increased to SEK 0.45 from SEK 0.22.

For H1, operating profit climbed to SEK 234.0 million from SEK 161.0 million, and profit after tax grew 72% to SEK 159.0 million from SEK 92.5 million. EPS rose to SEK 0.85 from SEK 0.49. These gains reflect revenue growth, improved leverage on fixed costs, and favorable tax outcomes. The SEK 1.10 per share dividend declaration signals confidence in ongoing cash flow and earnings sustainability.

Board Shark Acquisition Enhances North American Presence

On 24 June 2026, NCAB acquired 100% of Board Shark LLC, a U.S.-based PCB distributor, strengthening its sales network in the Northwest USA. The CEO welcomed the acquisition’s new employees and customers, highlighting the strategic value of the established customer base and sales team.

This acquisition aligns with NCAB’s growth strategy amid strong PCB market demand and pricing. North America continues to expand with new customers despite high comparables, and Board Shark’s integration positions NCAB for accelerated regional growth. Transaction costs related to the acquisition are separately disclosed, allowing clear assessment of operational performance.

Broad-Based Geographic Growth Across Segments

NCAB’s CEO reported growth across all four geographic segments. The Nordic region saw net sales growth and accelerated orders, with Multi-Teknik integration progressing well and contributing strong EBITA. Europe experienced recovery and early order placements, with all markets trending positively except Italy, which faces automotive sector challenges.

North America continues growth with new customers and benefits from the Board Shark acquisition. The East segment achieved strong order intake and revenue growth through technical support and factory capacity access. This geographic diversity supports NCAB’s competitive advantages and offsets localized headwinds.

Working Capital and Cash Flow Management Amid Supply Constraints

Operating cash flow for Q2 increased 24% to SEK 116.2 million from SEK 93.6 million, and H1 cash flow rose 24% to SEK 182.0 million from SEK 146.8 million. Despite improvements, working capital remains elevated due to longer lead times requiring higher inventory and extended customer payment terms.

Management is actively managing these pressures, and profitability gains have offset working capital impacts. Future monitoring will be necessary to assess if supply chain normalization leads to working capital release and improved cash flow.

Currency Effects and Market Pricing Impact on Results

FX movements negatively affected results, reducing Q2 EBITA by SEK 10 million and compressing margin by 0.8 points; H1 EBITA was lowered by SEK 40 million with a 0.5 point margin impact. Currency headwinds eased compared to prior quarters.

Approximately 20% of organic USD order intake growth stems from market price increases amid elevated pricing due to capacity constraints. While price hikes support revenue and margin expansion, they reflect inflationary pressures for customers. Underlying volume growth remains strong, indicating solid demand beyond pricing and pre-buying effects.

Supply Chain Challenges and Competitive Strength in High-Demand Market

Supply chains remain strained in 2026 due to PCB capacity shifts toward AI data centres and geopolitical tensions affecting raw materials. NCAB’s strong factory relationships and material access position it as a preferred supplier amid unreliable supply chains, enabling new customer wins.

While current conditions create growth opportunities, these are likely temporary. As supply normalizes, pricing premiums and pre-buying may decline. NCAB’s focus on high-margin sectors like aerospace and defence, with higher switching costs, may help sustain profitability through normalization.

Outlook, Financial Reporting, and Investor Engagement

NCAB did not provide specific forward guidance but expressed a positive view of Q2 developments. The SEK 1.10 per share dividend declaration indicates confidence in financial stability. The full interim report will be published on 22 July 2026 at 07:30 CEST, followed by a webcast at 10:00 CEST featuring CEO Peter Kruk and CFO Timothy Benjamin.

Upcoming reports include Q3 interim results on 23 October 2026 and full-year 2026 results on 12 February 2027, with a Capital Markets Day scheduled for 19 November 2026. Investors seeking further information can contact IR Manager Gunilla Öhman as per announcement details.