Incap Q1 2026: Questions and answers
Incap Q1 2026 webcast on 30 April 2026 at 11:00 EEST
Q: How much of the delayed Q1 revenue will be delivered in Q2, and how confident are you that the component availability is improving?
A: We haven’t reported the exact numbers on the revenue side, but what was postponed on Q1, will be delivered during the second quarter.
In general, there is a high demand of certain components in the industry, driven primarily by the development of AI and data centres. They are in priority as they are purchasing in large volumes and the rest of us are left a bit behind. But we don’t think that there is a systematic problem with the components because the component suppliers are working currently with increasing their capacity. This does not seem like a new component crisis, it’s more of a smaller disturbance.
Q: Was the component availability problem in Europe or in India?
A: Availability problem wasn’t in any specific site but in certain types of components and specific product ranges that use similar components, and that affected the business in general.
Q: Have you seen order cancellations due to weak economic environment or due to any other reasons?
A: We haven’t seen any order cancellations. Instead, we have a very strong order book, and we have received several orders, for example from the defence sector. The potential growth in that sector was of high interest when we did the Lacon acquisition.
We haven’t lost any major customers, so it is more about the normal slowness of the market mainly in January and February, and now it is picking up.
Incap is operating widely in different market segments now, and as we disclosed in the Q1 report, the proportion of our largest customer is more manageable nowadays. We used to have dependency on our largest customer but with the Lacon acquisition, Incap is currently a much more balanced company. Our risk profile regarding customer dependency is now significantly lower.
Q: How much did the order book grow, and what is the size, margin profile, and product mix of the new orders?
A: We didn’t comment on the order book numbers in the report, but even though we had a slower start for the year, we maintain our guidance and look fairly positively on the year. When it comes to the order book in general, the defence sector is driving the main growth, and other sectors are more stable. Also, when it comes to the AI and data centres, even if the larger operators are taking care of the core and servers, there is plenty of electronics used for instance in cooling and energy backup systems and they provide opportunities for the smaller players like us who are not tier one EMS providers. Currently, that is also driving the growth, together with the defence and security sector.
Q: Is the inventory increase purely due to Lacon and the delays?
A: The majority of the increase is Lacon becoming part of the Group, but we are also driving higher inventory or work-in-progress due to the material availability as we have had delays in orders.
Q: Is the Lacon integration progressing operationally and commercially well, and what are the biggest risks to achieving the expected benefits in 2026?
A: The integration is going well both commercially and operationally. Due to our decentralised model, also the new units within Incap have operational freedom. Still, Incap is focusing on getting them into our network where the units cooperate with each other and exchange knowledge. Including Incap Germany and Romania into those streams is the key thing.
We have also seen interesting development with cross-selling opportunities, customer bases, and geographical opportunities that we are exploring. We also see new requests and possibilities from new customers that see us in other light. With every step of getting bigger, Incap gets new interest from potential customers. The effects we will see in a couple of years’ time and we are also working on opportunities for the near future.
Q: How has the war in Iran affected Incap and have you noticed customers increasing their inventory levels as a result?
A: In general, we don’t see yet any larger supply chain disturbances due to the war. In the long run, high oil price will of course affect everybody equally in the industry when it comes to ie. transportation costs, but we haven’t seen yet any major increases. Some of our defence customers and some other sectors have been increasing their inventory levels. A lot of military materials were used during the initial stages of the war, and the stocks need to be replenished. In other customer segments, we haven’t seen any panic buys or hoarding of materials. We haven’t yet fully seen how this impacts transportation and logistics. The costs have increased and that will be reflected in the prices and ultimately will be paid by the end-customer.
Q: How is the business in India developing? Are there new accounts there?
A: We have had a very positive development in India. Our largest customer’s business is stable on their “new normal” level, and we see increase in other customer accounts. We are working there with some really interesting and exciting customers, and the cooperation goes well. Of course, the cycles are long, but we see how our work from developing and prototyping is already moving into normal production, and it will ramp-up over time to larger volumes. Also, now when the new units in Germany and Romania have joined us, there are several opportunities in India as well that we are pursuing with the new acquired customer base.
Q: Which kind of components or component types have had availability issues?
A: Foremost the chips and some of the smarter, more expensive and advanced components have had problems. The more basic components are always available. This is also limited to some manufacturers as it depends on the designs of the products and what they contain.
Q: If you’re now focusing on the integration of Lacon, when can we expect another acquisition?
A: We have done a major acquisition and currently, our focus is on the integration work. I don’t think this is our last acquisition, and once we feel comfortable that we have taken good care of the money that we have spent, we will, sooner or later, open up that pipeline. However, I won’t give any timeline whether that will be late this year or in the beginning of next year, or even earlier or later. The integration goes very well, so perhaps sooner than later.
Q: How has the Q2 started, and how would you comment on that? After the little bit soft Q1, what gives you the confidence that you can still achieve the 2026 guidance?
A: The end of Q1 in March was already picking up, and Q2 has continued on the same line, which gives us confidence. The strong order book that we discussed before, backs that up. Generally, we don’t see any other trends that would impact this negatively. Everything is going according to plan and I’m excited about the outlook for the year; it looks stable and good, and with the current information, I believe we will reach our guidance.
