* Sales SEK 1,216m & EBIT 69m
* Earnings beat driven by US
* Share currently trading at 11-9x '26e-'27e P/E
Q3 in brief
Ferronordic continued its positive trend with another strong set of numbers. Sales SEK 1,216m (+3% vs. ABGSCe 1,178m, no cons), EBIT 69m (49% vs. ABGSCe 46m, 37m in Q3'25) for an EBIT margin 5.7% (ABGSCe 3.9%, 3.6% in Q3'25). Earnings beat driven by US with a high aftermarket share in the quarter, while it was good to see Germany & Kazakhstan continuing to deliver positive results sequentially. Net debt came up slightly sequentially to 1,861m (1,845m in Q2'26), while ND/EBITDA came down to 2.8x (3.0x in Q2'26), below the 3.0x target for the first time since 2023. Lease adj. FCF was strong at ~SEK 100m.
Outlook and estimate changes
The report would mechanically raise EBIT by 10-8% '26e-'27e. Management remains optimistic about US operations and environment ahead, where infra and data center investments continue to drive growth. In Germany they expect a gradual recovery as fleet renewal requirements accumulate and a continued strong aftermarket.
Valuation
Prior to today's report, the share had returned -4% L1M, compared to the +3% of OMXSGI. The share is currently trading at 11-9x '26e-'27e P/E on our pre-report estimates vs. the heavy equipment distributor peer median of 21-18x.