TKH: Adjusted EBITA up 61% in the third quarter, but a fourth quarter expected to decline
TKH published on 10 November 2026 a business update showing an acceleration in the third quarter. Revenue reached €501.3 million, up 20.3% organically, and adjusted EBITA reached €63.3 million, up 61.0% organically, compared with respective increases of 16.0% and 49.2% over the first nine months.
The Dutch group nevertheless confirmed that it expects adjusted EBITA for the fourth quarter to be lower than the €70.5 million recorded in the fourth quarter of 2025. It attributes this decline to the expected drop in the results of Automated Machinery, whose sales are already falling, and to a high comparison base, while maintaining its organic growth target for the full year.
Return on sales up 3.4 points, to 12.6%
Earnings are growing significantly faster than activity. The ROS ratio, which relates adjusted EBITA to revenue, rises by 3.4 points year on year, to 12.6% compared with 9.2% in the third quarter of 2025. It also exceeds the 12.1% recorded over the first nine months of 2026.
The value added rate moves in the opposite direction: it falls by 1.4 points, to 48.8% from 50.2% a year earlier. Quarterly revenue also exceeds the €482 million estimate of the only analyst covering the company before the publication.
Chief Executive Officer Alexander van der Lof stated: “During the third quarter of 2026, we extended the strong performance of the first half, with 20% revenue growth and more than 60% growth in adjusted EBITA.” He added that the increased focus on Automation and Electrification “is paying off”.
Electrification and Vision Technologies drive growth, Automated Machinery declines
Electrification posts the sharpest increase, with organic revenue growth of 46.5%, partly due to the pass-through of higher raw material prices. In offshore wind, activity benefited from higher production volumes of inter-array cables at the Eemshaven plant and a higher contribution from subcontracted services and accessories.
The onshore segment also grew, supported by demand from Dutch grid operators. On a rolling twelve-month basis, Electrification totals €661.5 million in revenue and €81.5 million in adjusted EBITDA, corresponding to an adjusted EBITDA margin of 12.3%.
Within the Automation segment, Vision Technologies recorded organic growth of 20.9%. Machine Vision benefited from 3D vision, up in its main markets, and 2D vision, driven by defence and semiconductors. Security Vision progressed thanks to critical technologies and automation.
Other activities grew 24.8%, mainly thanks to Digitalization, due to better prices and higher volumes. Conversely, Automated Machinery's revenue fell 12.6% organically, as tyre building systems suffered from weaker order intake in previous quarters.
Fourth quarter expected to decline, annual target confirmed
TKH reiterated the outlook presented with its first-half 2026 results: barring unforeseen circumstances, the group expects organic growth in revenue and adjusted EBITA for the year. The expected decline in the fourth quarter stems from the anticipated drop in Automated Machinery's results, linked to a smaller order backlog.
Order intake in this activity improved in the third quarter compared with previous quarters. However, the group specifies that the effect on revenue will not be visible in the coming quarters, due to the engineering lead time required before actual production.
At group level, the order backlog fell to €996.5 million, compared with €1,031.2 million at 30 June 2026. That of Security Vision declined after the delivery of several large projects, while that of Machine Vision continued to rise from one quarter to the next.
In parallel, TKH is continuing the separation of its Electrification activities and expanding its Automation offering, with recent acquisitions in vision-based weld seam inspection and an industrial AI and IoT software platform.
The publication thus combines a higher quarterly profitability, driven by Electrification and Vision Technologies, with a fourth quarter that management expects to decline due to Automated Machinery.
