Nilörn: The market weakens again - ABG
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Nilörn: The market weakens again - ABG

Q2'25 impressions
Nilörn reports Q2'25 sales of SEK 237m (-3% vs. ABGSCe 245m), gross profit SEK 106m (-3% vs. ABGSCe 109m), adj. EBIT SEK 18m (-36% vs. ABGSCe 28m). The order intake came in at SEK 205m, implying a y-o-y decrease of 1%. For reference, this was slightly below our estimate of SEK 210-220m. While the order intake was slightly lower than we had anticipated, it is still above the historical average of ~SEK 190m. We also note that the company has written off inventory to the tune of SEK 2m as a couple of clients have entered restructuring.

Thoughts and outlook
Following the report, visibility has come down a bit. The luxury segment continues to be in a decline, as Nilörn cites elevated inventory levels that are unlikely to be resolved before 2026. The outdoor segment continues to perform well, and that is reassuring given a potential return of weaker conditions for Nilörn. Overall, this quarter makes it more difficult for Nilörn to achieve its targeted EBIT margin from a mechanical perspective this year.

Mechanical impact on cons. earnings is somewhat negative
The total return YTD is 5% and Nilörn is trading at ~8x '25e EV/EBIT on our unrevised estimates. The mechanical impact on consensus estimates on the back of the report is within a negative high single-digit range.
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