Energy Save: Q2 in line with pre-announcement - ABG
- Q2 sales SEK 15m, EBIT -16m, in line with profit warning - OEM business to rebound, anticipate stronger volumes in H2'25e - ES-branded sales up (+10% y-o-y, +40% q-o-q)
ANNONS
Q2 in line with profit warning Energy Save's Q2 figures were in line with the profit warning issued on 23 July, i.e. sales of SEK 15m (-85% y-o-y, -71% q-o-q) and EBIT of SEK -16m (2.8m). These figures were SEK -22m and -7m below our estimates prior to the profit warning. The sales miss was due to temporary build-up amongst OEM customers, combined with unfavourable market conditions leading to customers adopting a wait-and-see approach. OEM sales decreased 95% y-o-y and 95 q-o-q. However, a bright spot in the report was the increase in ES-branded sales (+10% y-o-y, +40% q-o-q). Moreover, we find it positive that the company's savings programme contributed to lower operating costs in the quarter, mainly due to lower other external costs (-46% y-o-y). The company reported FCF of SEK -9m (vs. -7m LY) and ended the quarter with a cash balance of SEK 21m (vs. 46m LY). To offset liquidity risk from weaker Q2 net sales, the company took out a short-term bank loan of SEK 25m in Q3.
Estimate changes and outlook On numbers alone, the pre-profit warning '25e-'27e sales is impacted by 9-5% and EBIT by -7m (vs. FY25e EBIT of SEK -16m). On outlook, the company expects a rebound in H2'25e, especially in Q4, driven by recovering OEM orders, and continued growth in ES-branded sales.
Valuation Prior to today's report, the share was down 15% L3M and is on our pre-report estimates and is trading at 8x-3x '26e-'27e P/E on our pre-profit warning estimates. The company will host a presentation of the Q2 results at 10:00.
