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Third party research

Humble Group: Red Sea prevents gross margin expansion - ABG

Humble Group

This is a third party research report and does not necessarily reflect our views or values

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'25e-'26e EBITA down 7-5%
Freight rate normalisation required for better gross margins
'25e EV/EBITA ~9x, ~40% below peers


What to expect in Q4'24

We expect sales of SEK 2,102m for Q4'24, implying 8% organic y-o-y growth in addition to a 0.7% FX tailwind. We anticipate a gross margin of 31%, which should be somewhat pressured by elevated freight rates. Our updated EBITA estimate is SEK 157m, which corresponds to an EBITA margin of 7.5%. We anticipate a significant working capital release in Q4, to the tune of SEK 130m.
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