Can New Wave Group’s (OM:NEWA B) Profitability Keep Pace With Its Rising Sales?

• New Wave Group AB (publ) announced its third-quarter 2025 results, reporting sales of SEK 2,390 million and net income of SEK 166 million, both compared to the same period in the previous year.
• While sales rose year-over-year, the decline in net income and basic earnings per share highlights ongoing challenges in maintaining profitability despite revenue growth.
• Next, we’ll explore how the higher sales but reduced profits this quarter could influence New Wave Group’s long-term investment case.

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New Wave Group Investment Narrative Recap

To be a shareholder in New Wave Group, you need to trust that consistent revenue growth and expansion into new markets will eventually drive sustainable profit gains, even amid margin pressures. The latest quarterly news, with sales up but profits down, could extend concerns about the company's ability to convert top-line strength into bottom-line recovery, but it does not materially affect the core short-term catalyst: broadening own-brand sales and market reach. The biggest near-term risk remains margin dilution from recent acquisitions, which lingers as profits lag behind sales progress.

Among recent announcements, the appointment of a new Chief Financial Officer stands out, given the persistent squeeze on net income. This management change may bring fresh focus to cost controls and integration efforts, matters which tie directly into the group’s ongoing quest for improved operating margins as it scales through acquisitions. These developments build on the view that operational discipline, alongside revenue growth, remains essential for strengthening the investment case.

On the other hand, investors should also be alert to pressure from low-margin acquisitions that could take years to...

Read the full narrative on New Wave Group (it's free!)

New Wave Group's narrative projects SEK12.5 billion revenue and SEK1.5 billion earnings by 2028. This requires 9.0% yearly revenue growth and a SEK639.6 million earnings increase from SEK860.4 million today.

Uncover how New Wave Group's forecasts yield a SEK129.00 fair value, a 19% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community contributed four independent fair value estimates for New Wave Group ranging from SEK129 to SEK329.58 per share. While many expect margin improvements from higher own-brand sales, the community’s wide range shows how differently investors assess the impact of recent profit weakness.

Explore 4 other fair value estimates on New Wave Group - why the stock might be worth just SEK129.00!

Build Your Own New Wave Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your New Wave Group research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free New Wave Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate New Wave Group's overall financial health at a glance.

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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.

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