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Third party research

Projektengagemang: Market remains challenging - ABG

Projektengagemang Sweden

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

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Tough end to 2024
Market to turn positive in '25e, according to report
Re-setting expectation, '25e EBITA down 29%


Q4: Sales -15% y-o-y, adj. EBITA margin of 1.4% (5.2%)

Projektengagemang's (PE) Q4 numbers shared characteristics with the softer Q3 report, with a sales decline of 15% y-o-y and underlying profitability (adj. EBITA margin) lower than last year. Sales was SEK 196m (231m) and adj. EBITA was SEK 2.8m (12.1m); we expected SEK 198m and 7.1m, respectively. The deviation was primarily driven by a lower number of FTEs and higher-than-expected personnel expenses per FTE. We are within a long downturn for the Swedish contracting market that started in '23, but according to Veidekke's latest market update, there are positive signs going into '25e. The company sees the Swedish contracting market increasing by 4% in '25e and a further 7% in '26e. We think this development will benefit PE, and that '24 should mark the low point in this cycle, although H1'25 comps look challenging given the loss of momentum during 2024.
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