Norrhydro Group

7:42

Strong earnings for Norrhydro in Q3.

The profitability improvement of the traditional cylinder business continued.

The guidance is uncertain, but we do not believe the share price prices in its realization.

Profitability and the balance sheet have developed favorably in the big picture.

The guidance was reiterated, but achieving it will require a significant turnaround in growth during the remainder of the year.

We estimate Norrhydro's EBITDA to have increased by 8% in Q2, even though the war in Iran has pushed our revenue forecast down by 7%.

The repayment of the 1.5 MEUR bond will be staggered over three years, which eases the company's debt repayment schedule from a cash flow perspective.

The Board will return EUR 0.02 per share in capital, even though the company's hybrid bond interest rate is as high as 10%.

Norrhydro's Q1 earnings were clearly better than we expected, and strong cash flow supported the company's financial position.

Norrhydro's Q1 profitability was significantly better than we expected.