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Third party research

Inission: Strong order recovery signals cycle bottom - ABG

Inission

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

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Orders +41%, sales +0%, adj. EBITA +12% vs. ABGSCe
High NRIs lower quality of beat, but orders indicate cycle bottom
'25e guidance a bit soft, but likely conservative, we are 13% above


Q4 results

Order intake came in at SEK 761m (+41% vs. ABGSCe 540m), recovering sharply from last year's low, and indicating that the cycle has indeed bottomed out. Sales were SEK 531m (0% vs. ABGSCe 533m), -4% y-o-y. EBITA adj. was SEK 28m (+12% vs. ABGSCe 25m), for a margin of +5.2% (ABGSCe +4.6%). We have adjusted for SEK -9.7m of non-recurring items, comprising costs for the upcoming listing change (4.8m), retroactive payroll tax for '20-'23 in Enedo (3.5m), and inventory write-downs (1.4m). The high NRIs lower the quality of the adj. EBITA beat, but we conclude that the underlying business seems to be operating much as expected.
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