CANCOM SE: Q1/26 review - Record quarterly gross margin

Research evidence excerpt

CANCOM SE: Q1/26 review - Record quarterly gross margin

Deutsche Bank

Research

Rating Company Date

Buy CANCOM SE 13 May 2026

Europe Reuters Bloomberg Rating Buy

Germany COKG.DE COK GR Price target (EUR) 34.00 Price at 12 May 26 25.60

52-week range 30.55 – 20.90

Technology

IT Software & Services Valuation & Risks

Q1/26 review - Record quarterly gross margin

Lars Vom-Cleff

Germany performance offsetting the decline of the International business Research Analyst

+49-69-910-13526 Q1/26 revenue were down 1% yoy but gross profit was up 3% yoy and with a gross

margin of 42.9% (+169bps yoy), CANCOM reached a new record for a quarter.

EBITDA rose 28% yoy, while EBITA even increased 69% yoy. Growth was driven

by CANCOM’s home market Germany (sales +6% / EBITDA +74% / EBITDA

margin 5.8%, +240bps (all yoy)), while the International business was weaker

(sales -1% / EBITDA -5% / EBITDA margin 8.2%, +60bps (all yoy)). Nevertheless,

the International business unit improved its EBITDA margin by 60bps yoy to 8.2%.

Despite increasing costs for infrastructure and storage components, customer

demand held steady in Q1/26 and according to CANCOM, the strong order book

indicates that this trend will continue past the quarter. Operating cash flow

reached EUR -60m (Q1/25: EUR 3m), due to higher NWC rising in line with

customer demand.

FY26E EBITDA could increase by >20% yoy

CANCOM continuous to envisage FY26E revenue/EBITDA/EBITA to increase

5%/17%/35% at the midpoint. We expect customer demand for infrastructure

solutions, digitalization, AI transformation, and data sovereignty to positively

influence the 2026 financial year. However, this will most likely be juxtaposed with

anticipated significant price increases and uncertainties surrounding the

availability of IT components.