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Third party research

Nolato - Better across the board - ABG

Nolato

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

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Q2 outcome
Sales was SEK 2,395m (+2% vs. ABG 2,345m, +2% vs. IR cons 2,351m), down 2% y-o-y, although organic growth was +4% (ABG +2%). EBITA came in at SEK 277m (+5% vs ABG 264m, +7% vs. cons 259m), for an EBITA margin of 11.6% (ABG 11.2%, cons 11.0%). The EBITA beat was mainly driven by Engineered Solutions (+14% vs. cons.), but Medical Solutions was also above (+4%). FCF was decent at SEK 128m (ABG 169m), for an FCF/net income of 60%.

Estimate changes
Nolato does not give formal guidance, but says it is optimistic on H2'25, which we take to believe that the stronger-than-expected Q2 margin should be extrapolated, and note that the Q2 margin is above cons FY'25e estimate. We expect cons EBITA to come up by 4-6%.

Valuation and conference call details
The report was strong across the board, with higher sales and margin, and both segments beating expectations. On our pre-Q2 estimates the share trades at 14x '26e EV/EBITA, and it offers 2-6% lease adj. FCF yields for '25e-'27e. Finally, the company will host a conference call at 08:45 CET, register here.
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