SP Group (Investment Case): Solid momentum continues into Q1 2026
Oversigt
- SP Group reported a record Q1 2026 with revenue up 22.9% to DKK 966m, driven by organic growth and the Ide-Pro acquisition, while EBITDA increased 18.5% to DKK 197m.
- Management confirmed 2026 guidance with expectations of 15–23% revenue growth and a 19–21% EBITDA margin, indicating potential to achieve the upper end of these targets.
- Key investment reasons include SP Group's buy-and-build strategy, structural growth in key markets, and synergies from the Ide-Pro acquisition, while risks involve geopolitical uncertainties and customer concentration.
- SP Group trades at a discount compared to peers, with a 6.2x EV/EBITDA (2026E) versus a peer median of 7.7x, and has shown a +7.2% YTD stock return, suggesting potential for further valuation expansion.
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In connection with the publication of SP Group's Q1 2026 interim report, we have updated our investment case.
SP Group delivered a record Q1 2026, with revenue rising 22.9% to DKK 966m (11.3% organic, 11.6% from the Ide-Pro acquisition). EBITDA grew 18.5% to DKK 197m with a 20.4% margin, and EBT increased 24.2% to DKK 125m. This marks back-to-back record quarters following an all-time high Q4 2025, confirming that the growth trajectory has been re-established after a volatile mid-2025.
Growth was broad-based across segments, with Ide-Pro supporting growth in Cleantech (+33.6%) and Foodtech (+63.9%), while Healthcare was stable (+0.6%). The Ide-Pro integration is proceeding as planned according to management, with cross-selling to existing SP Group customers already underway, despite Ide-Pro revenue falling below the +15% target in Q1 at 11.6%. Net debt declined DKK 72m in the quarter to DKK 1,388m (NIBD/EBITDA of 2.2x, down from 2.5x at year-end), and SP Group has announced a new DKK 40m share buyback programme.
Management confirmed 2026 guidance of 15–23% revenue growth, 19–21% EBITDA margin, and 11–13% EBT margin, with the Q1 run-rate suggesting the upper end is achievable.
Our investment case covers the key investment reasons, risks, and valuation perspectives.
The key investment reasons center on SP Group's proven buy-and-build strategy with a 10-year revenue CAGR of 8.6%, structural growth from the Healthcare, Cleantech, and Foodtech end markets, and the Ide-Pro acquisition, which expands geographic reach into India and is expected to deliver DKK 20–25m in synergies from 2027.
The key risks include ongoing geopolitical uncertainty from the Middle East conflict driving up raw material prices, the Ide-Pro acquisition being larger and at a higher multiple (7.6x EV/EBITDA) than historical bolt-ons, and some customer concentration with the top 10 representing 49% of FY 2025 revenue.
From a valuation perspective, SP Group trades at 6.2x EV/EBITDA (2026E) versus a peer median of 7.7x, and at a notable discount on EV/EBIT of 9.3x versus 15.2x for peers. The stock has returned +7.2% YTD versus a peer median of -15.4%, suggesting the market is beginning to recognise the quality of execution but that further valuation expansion could materialise if momentum continues.
For more insights into the results and the outlook, you can watch the management presentation of the Q1 2026 results here: https://www.inderes.dk/videos/sp-group-praesentation-af-regnskabet-for-1-kvartal-2026
Disclaimer: HC Andersen Capital receives payment from SP Group for a Digital IR/Corporate Visibility subscription agreement. /Philip Coombes, 16:10, 01/05-2026