* Sales SEK 38m (vs. ABGSCe 30m), incl. SEK 9m recycled metal sales
* HJWAVE IC500 delivered in Q3, LINDBERG IC500 shipped in October
* Positive EBIT of SEK 3.8m (vs. ABGSCe -9.7m)
Q3 results
Sales came in at SEK 38m (vs. ABGSCe 30m). Systems sales of SEK 16.6m from the HJWAVE IC500 were in line with our estimates, while Coating Services was higher at SEK 17.8m (vs. ABGSCe 12m), including SEK 9m (1.4m LY) of recycled metal sales. Excluding metals, Coating Services was SEK 8.8m (10.7m LY), with China contributing only SEK 1.6m (9m LY). The company reported positive EBIT of SEK 3.8m (vs. ABGSCe -9.7m), with the beat helped by metal sales and lower costs. We do not adjust for the metal sales, as they are a recurring part of Coating Services. FCF was SEK -5m (vs. ABGSCe 5m), and the company ended the quarter with a cash balance of SEK 14m (vs. ABGSCe 21m).
Estimate changes and outlook
On numbers alone, ‘26e-‘28e sales change by +9-5%, and '26e EBIT adj. changes by SEK 14m. The system backlog of SEK 13.6m is the LINDBERG IC500, shipped in October, while the Romanian IC2000 (EUR ~1.5m, delivery ‘27) is not yet in backlog pending the final agreement. Management views China with cautious optimism now that the hydrogen pilot program is in its implementation phase, with Shanghai back at full one-shift production from September.
Valuation
The share has returned -21% L3M (vs. peer median +2% and OMX Stockholm Allshare +3%), and is currently trading at 3.8x-2.4x '26e-'28e EV/Sales on our pre-report estimates vs. the peer median of 1.4x-0.9x. The company will be hosting a presentation in connection with its Q3 report at 09:00 CEST.