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Third party research

Projektengagemang: Still waiting for a recovery - ABG

Projektengagemang Sweden

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

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Q2 momentum gone in Q3
Market to turn positive in '25, according to report
We lower '25e EBITA by 13%


Q3: Sales -15% y-o-y, adj. EBITA margin of -4.6% (-2.9%)

Projektengagemang's (PE) Q3 numbers marked a step back from the progress seen in Q2, as the sales decline accelerated to 15% y-o-y and underlying profitability (adj. EBITA margin) decreased. Sales was SEK 144.5m (170.4m) and adj. EBITA was SEK -6.6m (-4.9m); we expected SEK 152.6m and 0.2m, respectively. The deviation was primarily driven by a lower number of FTEs and a lower utilisation rate than expected. 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 '25. 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.
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