Ferronordic: Still on the same track - Nordea

We lower 2025E adjusted EBIT by 10% yet keep 2026E-27E adjusted EBIT largely intact (+2%), as we find weakness in Q2 partly due to temporary effects. We are encouraged by the positive (+10%) market growth in the US and Ferronordic's substantial market share gain in Germany, also having managed to deliver healthy cash flows and decrease leverage sequentially. While profitability was weak, we expect a healthier market environment in 2026 to yield ~2.5% y/y organic growth (following 0.7% y/y in 2025E) and to support cost absorption and ~180bp y/y adjusted EBIT margin expansion for 2026E, driving ~80% y/y adjusted EBIT growth. However, we find this earnings recovery already largely reflected in estimates, with the stock trading at 2926E adjusted EV/EBIT of ~12.5x, a 10% premium to peers. We derive a slightly higher multiples-based fair value range of SEK 26-53, corresponding to 11-13x 2026E adjusted EV/EBIT. - Marketing material commissioned by Ferronordic