* Sales +113% y-o-y on recent orders; 0%/-6% vs. ABG/cons * EBIT was +13% vs. ABG and +7% vs. cons, driven by higher GMs * Strong Q3 FCF - expect cons to make small revisions Q3 results Sales SEK 202m (0% vs ABGSCe 203m and -6% vs cons 216m), adj. EBIT 54m (13% vs ABG 48m and 7% vs cons 51m). As expected, NWC normalised following the depressed levels in Q2 (driven by payments from the FMV contract), resulting in FCF of SEK 194m (vs. SEK -41m in Q3'24). This resulted in both sales, margins and FCF reached record-high levels. Net debt totaled SEK 326m by end-of-Q3. The order book was robust at SEK 1.0bn by end-of-Q3 whereas the FMV order extends to 2027. Q3 thoughts Following the SEK 1bn order from the Swedish FMV, Ovzon achieved a significant breakthrough in Q2, and this momentum continued in Q3. Sales improved markedly (+113% y-o-y) and while the EBIT margin was 27% (vs. -24% in Q3'24). On revenue streams, SATCOM and terminal sales met our expectations, comprising 80% and 20% of net sales, respectively. Nonetheless, margins were better than expected, driven by higher gross margins while opex was above our forecast. On the outlook, Ovzon highlights a growing global demand. There was no specific news regarding the situation in the US beyond the statement that 'The US market remains important and a special focus area for us' - we continue to expect it to rebound in 2026, albeit visibility remains blurred. Meanwhile, activity in Europe remains high. Estimate changes At a first glance, we expect consensus to make small revisions to '25e-'26e EBIT. The stock is trading at 34x-14x '25e-'26e EV/EBIT on our unrevised estimates. There is a conference call 10.00 CET.
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