Berner Industrier: Another great quarter - ABG

* Orders +11%, sales -7%, adj. EBITA +29% vs. ABGSCe * Strong margin due to good mix in E&E and improvements in T&D * Another great quarter, but mix should likely not be fully extrapolated Q3 results Orders were up 24% y-o-y and 11% above our estimate. Sales grew 6% y-o-y (+2% org.) and were 7% below our estimate. With a margin of 12.6%, 3.5pp above our estimate, EBITA adj. was 29% above our estimate. The very strong margin was driven by a continued favourable business mix in the E&E segment, while T&D saw benefits from the operational improvements in Christian Berner AB, as well as growth in high margin sub-segments. Estimate changes The Q3 numbers in isolation imply EBITA adj. comes up 7%. We note that despite another strong quarter for the E&E margin, the favourable business mix in the segment should likely not be fully extrapolated. Company valuation Over the past three months, the share has returned -1%, compared to the peer median of +3% and the +7% of the OMX Stockholm Allshare. The share is currently trading at 20x-18x '25e-'27e P/E, compared to its 10-year historical median of 14x-11x and peers at 17x-10x.