Incap: Received EUR 11m order from KNDS - Nordea

Incap delivers cable harnesses and electromechanical assemblies for the Leopard tank under a three-year contract. The EUR 11m order from KNDS represents 1.2% increase in annual net sales. Incap also expects the order volumes to be extended for additional vehicles. We estimate that the defence sector accounted for 3% of net sales in Q2 2026. Defence-related customers are likely to play an important role in supporting both the company's growth story and valuation multiples. While Incap's defence business is clearly growing at a healthy pace, the segment may still account for less than 10% of net sales for the full year 2026. Our forecast for net sales in a group level has been EUR 74m in Q2. The expected revenue growth of 34% y/y in Q2 is primarily driven by the acquisition of Lacon. The company's full-year guidance points to clearly higher net sales and EBITA in 2026 y/y. While the revenue growth guidance does not appear demanding, achieving more than 20% growth in adjusted EBITA y/y could prove challenging, as Lacon's profitability remains below Incap's historical EBITA margins.