Q3 initial comment: higher adj. EBITA but on higher NRIs

The Q3 headline numbers were slightly better than we and the market expected. Sales were broadly as expected, up by 10% Y/Y and mainly driven by M&A (+6% Y/Y), and organic sales grew for the third consecutive quarter, by 2% Y/Y. Adj. EBITA of EUR11.5m was 5% above Modular Finance consensus and the margin reached 10.3% (consensus 9.7%). However, NRIs were also high at EUR-1.7m compared with our expectation of EUR-0.3m, and reported EBIT ended up ~10% below consensus. With higher than expected taxes due to non-cash items, net profit was EUR3.2m, slightly down Y/Y and 30% below consensus. Relais does not publish financial guidance, but it repeated earlier comments that its focus is on driving EBITA growth and strengthening cash flow, to us implying that 2026 is a year of digesting recent acquisitions, improving operational performance and reducing leverage before engaging in larger M&A.

Higher gross margin, but large NRIs supported adj. EBITA. Q3 sales were EUR111.5m, 1% below Modular Finance consensus. The gross margin was 49.8%, up from 48.4% a year ago. Adj. EBITA was EUR11.5m, 5% above consensus, and the adj. EBITA margin was 10.3%, versus 10.8% a year ago, supported by Commercial Vehicle Services, where adj. EBITA was 20% above our estimate (no consensus available) with an adj. EBITA margin of 10.9%, clearly above our expectation of 9.0%. Net debt/EBITDA LTM was 4.0x, up from 3.7x a year ago.

We expect only minor revisions to consensus. Relais did not provide numerical guidance for 2026, which is typical and as expected. Ahead of the results, consensus was for 2026e sales of EUR470m (up 23% Y/Y), adj. EBITA of EUR45.0m (up 17% Y/Y) and an EBITA margin of 9.6% (10.0% in 2025).

Webcast at 14:00 EET. https://relais.events.inderes.com/q3-2026/register.