* Better organic growth (+5% vs. ABGSCe +1%)
* AM guide raised to 20-25% (5-15%), OEM narrowed to 45-50% (45-60%)
* Share -6% into numbers, trades at 21-12x EBIT '26e-'27e
Q3 details
Sales were 1% above our expectations, with sales of SEK 76m up 5% y-o-y organically (ABGSCe +1%, +1% cons). This was driven by a 26% reported increase in aftermarket sales (ABGSCe +6% y-o-y), while system sales decreased -28% y-o-y (ABGSCe -3%). AM share of sales was 72% (ABGSCe 61%). According to the CEO, growth in AM sales was driven by spare parts demand, while OEM was softer due to pushed deliveries from Q3. Sales to the private jet segment was fairly in line with expectations. EBIT increased ~25% y-o-y to SEK 23m (ABGSCe 26m, cons 24m), as the margin came in at 30% (ABGSCe 34%, cons 31%, 25% Q2'25). Free cash flow of 15m continued to be sequentially positive (33m last year).
Outlook and estimate changes
For Q4, the CEO expects net sales (in USD terms) "to exceed Q3'26", where we have (in SEK terms) Q4 sales of SEK 73m vs. the Q3 outcome of 76m. The Q3 outcome vs. our estimates would mechanically lower our FY'26e EBIT by 4%. However, using current FX rates vs. our latest published note, we note that the USD/SEK would raise EBIT by ~2%.
Valuation
The share has returned -6% L1M, below the broader market (OMXSGI -1%), and trades at (pre-Q3 estimates) 21-12x EBIT adj. '26e-'27e (22x L10Y). There is a conference call at 09:30 CET, link.