AUSTRIACARD HOLDINGS AG (ACAG), the Vienna-based international applied technology group, has announced its financial results for the nine months of 2026.
▪ Consolidated revenue of €291.7m (up 11% year on year from 9M 2025), with Digital Technologies and Identity & Payment solutions the main drivers of growth. Revenue increased in all three geographic segments, with WEST (+15%) and MEA (+14%) recording double-digit growth from 9M 2025. Group revenue in Q3 2026 rose 6% from Q3 2025, the strongest quarter of 2025, and 8% from the previous quarter. Year-on-year revenue growth in Q3 2026 was supported by public sector digitisation projects in Greece, Identity solutions in MEA and a secure printing project for national examinations in an East African country.
▪ Public sector digitisation projects in Greece drove revenue growth in Digital Technologies solutions (up 70% from 9M 2025). Fintech customers in WEST and citizen authentication solutions in MEA were the main growth drivers for Identity & Payment solutions (up 9% from 9M 2025). Document Lifecycle Management solutions (down 2% from 9M 2025) returned to positive growth, up 9% from Q3 2025, as a secure document printing project for national examinations in an East African country offset the structural decline in volumes in postal services and printing in Romania.
▪ EBITDA of €30.2m (down 10% from 9M 2025), with the Group’s EBITDA margin at 10.4%, down 250 basis points from 9M 2025. The decline mainly reflects higher costs and margin pressure in Document Lifecycle Management solutions, particularly in the Romanian market; increased outsourcing costs to deliver public sector digitisation projects in Greece; investment in strengthening the Group’s management, sales and research and development (R&D) teams; and one-off expenses arising from the settlement of the legacy 2022-2025 Management participation plan, the accounting impact of the existing long-term incentive (LTI) plan and DNP’s public takeover offer. Excluding all one-off expenses, the Group’s EBITDA was €33.6m (margin of 11.5%), down 7% on a like-for-like basis from 9M 2025.
▪ Net profit of €8.8m (down 11% from 9M 2025), reflecting lower operating profitability (EBIT down 19% from 9M 2025), despite one-off gains of €2.2m from the sale of a 25% minority stake in SEGLAN S.L.
▪ Net cash flow from operating activities was an inflow of €10.9m in 9M 2026 (compared with an inflow of €23.2m in 9M 2025), weighed down by the build-up in working capital (a €10m impact on operating cash flow) and the cash outflow related to the settlement of the legacy Management participation plan (€4.8m). Net cash flow from operating activities in Q3 2026 was an inflow of €20.2m, up 59% from Q3 2025, supported by a significant improvement in working capital (a €14m benefit to operating cash flow in Q3). This was largely attributable to the invoicing and collection of payments for public sector digitisation projects in Greece, lower inventories and the collection of VAT receivables. The remaining increase in working capital in 9M 2026 was mainly due to increases in both contract assets (public sector digitisation projects in Greece and Identity & Payment solutions) and trade and other receivables (Identity & Payment solutions, public sector digitisation projects in Greece and deferred expenses).
▪ The Group’s net debt stood at €93.6m (compared with €81.6m at year-end 2025), down by about €10m from the end of June 2026 (€103.9m), thanks to strong net cash flow from operating activities in Q3 2026, despite an increase in capital expenditure (CAPEX). The Group’s leverage ratio (net debt / EBITDA) was 2.1 times, unchanged from the end of June 2026 and slightly higher than in 9M 2025 (2.0 times).
▪ 2026 outlook and revised management estimates: Management confirms its previous forecast for Group revenue growth in 2026 at a low double-digit rate from 2025. This forecast is underpinned by strong growth among Fintech customers in Western Europe and the US, the delivery of public sector digitisation projects in Greece, and orders for secure document printing and Identity solutions in MEA. The Group’s EBITDA margin in 2026 is expected to decline from 13.6% in 2025, owing to higher costs for Document Lifecycle Management solutions in Romania and the delivery of public sector digitisation projects in Greece, as well as higher overheads associated with hiring staff to support the Group’s key growth projects.
In addition, the Group’s EBITDA for 2026 is expected to be weighed down by further unbudgeted expenses, estimated at about €6m for 2026, relating to DNP’s public takeover offer, the change-of-control event and the settlement of the legacy 2022-2025 Management participation plan. In light of the above, management expects the Group’s EBITDA for 2026 to decline by a high single-digit to low double-digit percentage from €48.8m in 2025. Excluding all the aforementioned one-off expenses, the Group’s EBITDA for 2026 is estimated to decline by a low single-digit percentage on a like-for-like basis from 2025.
▪ Voluntary public takeover offer by Dai Nippon Printing Co., Ltd. (“DNP”): The Offer is subject to the Conditions and Requirements set out in Section 4.1 of the Information Memorandum. At the time of publication of the Results Press Release, the Conditions and Requirements had not been fully met (approval for foreign direct investment (FDI) by the Austrian authorities is still pending). Accordingly, the Offer has not become unconditional and binding.
The Group’s Chairman of the Management Board and Chief Executive Officer, Manolis Kontos, said:
“The first nine months of 2026 confirm the growth trajectory we set at the start of the year. Group revenue increased by 11%, in line with the low double-digit growth target we announced at the half-year, with contributions from all three geographic segments. The largest contribution came from the areas in which we have made targeted investments: Digital Technologies solutions, integrated Citizen Identity services in MEA, and Payment solutions for Fintech and neobank customers in the UK and the US. Revenue in Q3 rose 6% from Q3 2025, the strongest quarter of 2025, and 8% from the previous quarter. Notably, working capital improved in Q3, as we had committed it would. The growing contribution of large-scale technology projects is changing how cash [is recorded] within the business. These projects tie up working capital during delivery and release it as milestones are achieved.
Q3 showed this cycle at work. As public sector digitisation projects in Greece move into the invoicing and collection stages, they generated operating cash flow of €20.2m in Q3, up 59% from Q3 2025. This was enough to fund higher capital expenditure while also reducing net debt by about €10m. We expect further improvement in working capital in Q4 as more projects are completed and inventories fall, while the contractual terms we renegotiated with our suppliers in mid-2025 are also beginning to take effect.
We remain committed to our strategy, and its implementation is in full swing, as reflected in the investments made this year. We have strengthened our presence in Africa to support the large-scale secure document printing projects we are already delivering in MEA, and are expanding our presence in the US with our second card personalisation centre in Salt Lake City, Utah. We are also continuing to invest in our proprietary software, Payment and Digital Technologies solutions, including our proprietary GaiaB™ platform and Card-as-a-Service. We are investing in our people too, further strengthening our management, sales and research and development (R&D) teams as the projects we deliver grow in scale and complexity. These are deliberate choices that strengthen AUSTRIACARD’s position as a provider of integrated applied technology solutions, and will be reflected in the Group’s financial profile over time.
The proposed combination with DNP adds a new dimension to our strategy. Once the transaction is completed, AUSTRIACARD will become part of a global group whose reach and resources will accelerate our strategy across Europe, the US, the Middle East and Asia. That lies ahead. In the meantime, we remain focused on everything that has brought us this far: serving our customers, supporting our people and honouring our commitments.”