Kalmar (HLSE:KALMAR) Margin Expansion Underscores Optimistic Narrative as Shares Trade Below Fair Value

Kalmar Oyj (HLSE:KALMAR) reported net profit margins of 8.6%, up from 8.1% a year ago, signaling better profitability. Annual revenue is projected to rise by 4.9%, topping the Finnish market’s average of 4.2%. Earnings are expected to grow by 12.3% per year after breaking a five-year earnings decline with a 0.5% uptick in the most recent period. With shares currently trading at €35.94, well below their assessed fair value of €55.75, and quality of earnings described as high, the absence of flagged risks positions Kalmar as a potentially appealing play for investors.

See our full analysis for Kalmar Oyj.

The next section looks at how these results stack up against the most widely held narratives, sometimes affirming them and sometimes turning them on their head.

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Automation and Eco Portfolio Fuel Orders

• Orders grew 20% year-on-year, largely due to rising demand for Kalmar's automation and electrified solutions, as global ports and distribution centers invest in modernized, sustainable equipment.
• Analysts' consensus view strongly supports the idea that these trends are expanding Kalmar's recurring revenues and gross margins.
  • The eco portfolio represents 44% of sales and orders, highlighting Kalmar's role in the decarbonization movement and providing a higher-margin mix as port operators seek greener fleets.
  • Ongoing investment in digital platforms and modular fleet solutions strengthens industry leadership and helps raise net margins above historical averages.
• To see how these strategic shifts are driving future prospects, check out the data-packed consensus narrative for Kalmar Oyj. 📊 Read the full Kalmar Oyj Consensus Narrative.

Margins Poised for Expansion

• Forecasts show profit margins climbing from 8.1% to 10.7% over three years, accompanied by projected earnings growth to €211.3 million by September 2028.
• Analysts' consensus view indicates this margin and earnings trend is supported by a combination of operational efficiency measures and increased share of high-value services.
  • Strategic outsourcing and distribution center relocations are expected to improve efficiency and support higher profitability, even with short-term cost impacts.
  • Aftermarket service revenue, enhanced by automation and digital add-ons, improves resilience against competitive pressures and supports the margin expansion narrative.

Valuation Discount Highlights Upside

• Shares trade at €35.94, below the DCF fair value of €55.75 and at a price-to-earnings ratio of 15.9x compared to a peer average of 21.5x.
• Analysts' consensus view suggests this valuation gap offers potential upside if forecasted growth in revenue and margins is achieved.
  • The analyst price target is €39.20, about 9% above the current share price, and depends on delivering earnings and revenue growth through 2028.
  • Kalmar's discounted multiple and strong forward indicators challenge industry concerns about cyclical risk and support the case for a potential re-rating if execution continues.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Kalmar Oyj on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Do you interpret these figures in a new way? Take a couple of minutes to turn your insights into a personal narrative and Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Kalmar Oyj.

See What Else Is Out There

While Kalmar Oyj is positioned for margin expansion, its earnings improvement follows a prolonged five-year decline and is still in the early stages of recovery.

If you want more reliable long-term growth, use our stable growth stocks screener (2087 results) to spot companies delivering steady results and consistent performance year after year.

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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