* We see 21% sales growth and an EBITA margin of 7.2% (4.8%)
* Expect company will beat somewhat conservative '26e guidance
* Strong operational momentum, 12x-9x P/E vs peers at 17x-13x
Q1 expectations
We expect the strong momentum built in H2 will continue in Q1 and forecast sales growth of 21% (16% organic), supported by the order book, and an adj. EBITA margin of 7.2% (4.8%), as the Inission segment leverages growing volumes and the Enedo segment improves thanks to its new cost base and return to growth.
Estimate changes
We only make minor adjustments to our estimates, mainly driven by improved FX. We now forecast '26e sales of SEK 2.46bn at an adj. EBITA margin of 6.8% (7.0% Inission, 2.0% Enedo), which is a bit above the company's guidance of 2.3-2.5bn sales at a margin >6%, but as we stated in our Q4 comment, we believe the company is being a bit conservative with its guidance.
Outlook and valuation
We remain positive on Inission's outlook for '26e, as the company has clearly started converting the high book-to-bill in '25 into both sales and margin expansion. This started first in the Inission segment during Q3, but should now gradually start spreading to Enedo at the same time as the cost savings implemented in the segment during '25 take full effect. The share is now trading at 12x-9x '26e-'28e P/E, compared to peers at 17x-13x.