* Orders -10%, sales +3%, adj. EBITA -6% vs. ABGSCe * Enedo drove EBITA miss, Inission beat; Enedo b-t-b reassuring 1.3x * Reiterate FY-margin target, Inission stabilised, Enedo growth in H1'26 Q2 results Orders were up 22% y-o-y but 10% below our estimate, however note that we did not have the y-o-y comp until it was reported this quarter. Sales fell 6% y-o-y and were 3% above our estimate. With a margin of 4.8%, 0.4pp below our estimate, EBITA adj. was 6% below our estimate. EBITA included non-recurring items with a negative margin impact of 0.3pp (main market listing process). The miss on EBITA was entirely driven by weaker performance in Enedo, while Inission beat our expectations. Enedo's book-to-bill at 1.3x was however reassuring. Lease adj. FCF was 24m, bringing the R12m figure to 28m, i.e. 76% of net income, which was stronger than we had estimated. There is a conference call at 09:00 CET: webcast Estimate changes The Q2 numbers in isolation imply EBITA adj. comes down 1%. Management views the organic growth outlook for H2 as uncertain, but expects that Enedo will keep shrinking while Inission has troughed already. Both segments are expected to be back to growth in H1'26 however, a view supported by Enedo's book-to-bill of 1.4x in H1. Management believes that the planned cost reductions should ensure the 6% FY-margin target is reached even if volumes remain at current levels. Company valuation Over the past three months, the share has returned +11%, compared to the Nordic EMS peer median of +23% and the +6% of the OMX Stockholm Allshare. The share is currently trading at 12x-7.4x '25e-'27e P/E, compared to its 10-year historical median of 13x-8.9x and peers at 19x-13x.
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