Festi stock: Q3 sales rise as margin pressure cuts profit
Published on 10/30/2026 at 01:00 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSFesti reports mixed third-quarter performance
- Sales of goods and services increased year-on-year, while margins, EBITDA and profit declined.
- Festi said fuel costs, weaker electronics demand and fewer tourist arrivals weighed on performance.
- The company left its 2026 EBITDA guidance unchanged at ISK 16.0-16.5 billion.
Festi reported mixed third-quarter results on October 28, 2026, with sales growth offset by margin pressure and weaker earnings. According to the Festi release published via GlobeNewswire, sales of goods and services rose 8.6 percent year-on-year to ISK 51,147 million.
Revenue growth meets margin pressure
Margin from sales declined 1.3 percent to ISK 11,901 million, while the margin level fell to 23.3 percent. Festi said the decline was 0.8 percentage points excluding the effects of exchange-rate movements, fuel prices and public fuel levies.
EBITDA fell 6.2 percent to ISK 4,988 million, and profit decreased 12.9 percent to ISK 2,309 million. Operating cash flow was ISK 4,839 million, down ISK 1,825 million from the year-earlier quarter.
Fuel and consumer demand weigh
Chief Executive Ásta S. Fjeldsted said higher oil and commodity prices kept fuel margins under pressure. Margin from fuel and electricity declined by ISK 622 million year-on-year. Fewer tourist arrivals also affected several business areas, while weaker consumer-electronics demand reduced the margin from electronics by 3.5 percent.
Krónan was a brighter spot. Its quarterly EBITDA reached ISK 2,091 million, an increase of 15.1 percent, while in-store transactions rose 4.4 percent. Festi also completed the acquisition of the remaining 30 percent of Local ehf. and all shares in Skjáauglýsingar ehf. for a combined purchase price of ISK 564 million, net of cash acquired.
Guidance remains unchanged
Festi said its outlook for the fourth quarter was positive and kept its 2026 EBITDA guidance at ISK 16.0-16.5 billion. Management expects earnings to improve across all business units except Lyfja, which remains under pressure from rising costs and regulated medicine mark-ups.
For investors, the report presents a mixed operating picture: topline growth and cost discipline contrast with lower margins, increased debt and weaker quarterly profit. Net interest-bearing debt including lease liabilities stood at ISK 39,892 million at the end of the quarter, while the equity ratio was 40.2 percent.
Festi hf. company facts
- Company: Festi hf.
- ISIN: IS0000020584
- Reporting period: Third quarter 2026
- Report date: October 28, 2026
- Sales: ISK 51,147 million, up 8.6 percent year-on-year
- EBITDA: ISK 4,988 million, down 6.2 percent year-on-year
- 2026 EBITDA guidance: ISK 16.0-16.5 billion
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