Incap 202607300903 flash

Commissioned research: Incap – EBITA margin below our expectation in Q2 - FY guidance unchanged Marketing material commissioned by Incap The most recentweakening

Profitability (adj. EBITA margin) was weaker than we forecasted for Q2. An unfavourable sales mix weighed on Q2 profitability. Component availability was also problem in Q2, which could have raised input costs. But organic growth was slightly above our expectation in Q2. Reported revenue growth was strong due to Lacon acquisition. Full year guidance is repeated and Incap expects H2 to be stronger than H1 2026. Integration of Lacon has surely affected to the profitability but competition in India is also intensifying. Orders from the defence sector are growing strongly but still relatively small part of net sales in a group level.

Q2 key figures Reported revenue growth was 34% in Q2 y/y Organic revenue growth was 4% in Q2 Q2 net sales was EUR 74.2m (Nordea EUR 72.2m) Q2 clean EBITA was EUR 6.5m (Nordea 7.5m) Operating profit margin was 8.8% (Q2 2025: 11.5%) Net gearing was 6% end of June Full year 2026 guidance Net sales is guided to EUR 270-290m (unchanged), Incap issued current FY 2026 guidance on 24 July 2026 Nordea forecast for net sales is EUR 276m (+29% y/y), LSEG consensus EUR 279m Adjusted EBITA is guided to EUR 26-29m (unchanged) Our estimate for adj. EBITA is EUR 29.5m (2025: EUR 26.4m ) in 2026, consensus EUR 27m

Summary Table - Key Figures EURm E 2027E 2028E Total revenues EBITDA (adj.) EBIT (adj.) EBIT (adj.) margin 14.7% 13.8% 13.1% 12.0% 9.83% 10.9% 11.0% EPS (adj.) EPS (adj.) growth 30.8% -20.1% 6.81% -39.3% 41.4% 21.7% 9.18% DPS EV/Sales EV/EBIT (adj.) P/E (adj.) P/BV Dividend yield 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% FCF yield before AD, lease adj -1.25% 15.2% 10.4% 5.72% 3.43% 8.11% 9.47% Net interest bearing debt Net debt/EBITDA ROCE 43.1% 25.2% 22.2% 17.6% 15.2% 15.8% 15.8% Source: Company data and Nordea estimates

Pasi Väisänen, CEFA Director Nordea | Investment Banking & Equities | Equity Research Finland Tel: E-mail:

Completion date: 30/07/2026 09:02 CEST As of today, Nordea Abp holds no positions of 0.5% or more of shares issued by Incap. This report has not been reviewed by the Issuer prior to publication. Nordea analysts do not hold shares in the companies that they cover. No holdings or other affiliations by analysts or associates.

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