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Third party research

Vestum: Miss driven by service companies - ABG

Vestum

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

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Adj. EBITA -11% vs ABG, -13% vs consensus
Service companies drove the miss, products held up better
We expect consensus to cut estimates by 3-5%


Q4 details

Sales SEK 1,153m (-3% vs ABG 1.183m, -9% vs. cons 1,266m), -26% y-o-y, -8% organic (ABG -3%, -9% Q3’24). Adj. EBITA 102m (-11% vs. ABG 114m, -13% vs. cons 117m), -39% y-o-y, margin 8.8% (ABG 9.7%, cons 9.2%, Q3’24 11.5%). EBITA was weaker in all three segments, especially in Services which we expected to be weak, but less in Water which held up better. The company points to fewer days in December and the challenging market conditions, resulting in weaker demand and some credit losses, as the main reasons for weaker profitability in Services (sales were in line). Product companies held up better than the service companies in both Services and Infrastructure, which is encouraging. FCF was 65m (64% conversion).
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