Relais: Solid top line development while costs above expectations - Nordea

Relais Q2 adjusted EBITA of EUR 8m was up 6% y/y and came 14% below Modular Finance consensus of EUR 9.4m. There were EUR 0.6m higher credit loss provisions and if adjusting for these, Q2 EBITA missed by 8%. Organic sales growth was 4% y/y in Q2 (Nordea +2%) with broad based growth. All segments beat our top line estimates. Net sales were EUR 110m (+33% y/y), 2% above consensus. Overall, the Q2 EBITA miss was driven, in addition to credit loss allowances, by organic growth investments and relocation of Raskone flagship workshop (organic adjusted EBITA growth: -13% y/y). Gross margin came 20bp below our expectation. Operating cash flow was strong at EUR 6.8m (EUR -0.2m a year ago). Relais does not give short-term outlook for 2026 but notes satble market conditions in Q2. On initial take, we expect consensus to make small negative estimate revisions on the back of the Q2 miss while solid organic growth can be viewed positively.