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Third party research

Impact Coatings: Soft quarter ahead - ABG

Impact Coatings

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

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Report out 29 April
No major machine deliveries in Q1e
Minor est. changes, timing adjustments in machine deliveries


Q1 expectations

With no machine orders announced during the quarter, we expect Q1e to be soft for Impact Coatings. We estimate sales of SEK 7m (vs. SEK 4m in Q1'24 and SEK 42m Q4'24). We believe that the weaker order momentum could partly be related to the Lunar New Year holidays, as China (the company's largest market) had large parts of its industry shut down during the quarter. As a consequence of lower volumes in Q1, we expect EBIT to decline q-o-q and y-o-y, and we estimate SEK -20m (vs. SEK -16m in Q1'24 and SEK -4m in Q4'24). We estimate the company will end the quarter with a cash balance of SEK 16m, which can be compared to the R12m FCF lease adj. of SEK -89m.
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