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Third party research

Impact Coatings: Navigating market headwinds - ABG

Impact Coatings

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

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'25e sales cut by 5%, three system deliveries for '25e (prev. four)
We expect more market softness for the rest of the year
2.4x-2.0x '25e-'27e EV/sales


Q1 results

Impact Coatings delivered sales of SEK 9.5m (ABGSCe 7.2m), with no machine deliveries in the quarter, as expected. Costs remained under control despite lower volumes, and EBIT was stronger than expected at SEK -14m (ABGSCe -20m). Q1 was a soft quarter for Impact, with lower business activity, partly due to seasonal effects and a cautious investment environment. We expect these market conditions to continue for the rest of the year but believe that the company is well-positioned to execute on orders once momentum picks up. Furthermore, the company improved its cash flow both q-o-q and y-o-y, and reported lease-adj. FCF of SEK -5.6m (vs. ABGSCe -17m). Moreover, it ended the quarter with a cash balance of SEK 26m compared to the R12m lease-adj. FCF of SEK -72m.
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