* Sales +189% y-o-y on recent orders; -2%/-8% vs. ABG/cons
* EBIT was -1% vs. ABG and -9% vs. cons
* Expect cons to make small revisions, share in line with the market
Q1 results
Sales SEK 277m (18% vs ABGSCe 234m and 16% vs cons 239m), adj. EBIT 74m (83% vs ABG 41m and 82% vs cons 41m). Solid FCF, resulting in a NIBD of SEK 191m, down from 259m in Q4'25. Despite dampened order activity in the seasonality slow Q1, the order book stood at a robust SEK 0.8bn by the end of Q1.
Q1 thoughts
Similar to recent quarters, terminal sales stayed elevated given the recent strong intake. While sales were slightly below expectations, Q1 was another strong quarter, with continued operating leverage. GMs were 66% (vs. 58% in Q4), driven by a favourable sales mix. In terms of outlook, Ovzon highlights that the dialogue with the US DoD has been reestablished and holds further growth potential - which we agree upon. Also, it notes that while sales cycles are long, underlying demand remains strong.
Estimate changesAt a first glance, we expect consensus to do small revisions, given that the miss versus consensus partly seems to related to terminal saels (which may be lumpy). All in all, another strong report, but the flat revisons coupled with a strong share price run into the report makes us expect the stock to trade in line with the market today. The valuation is sitting at 21x '26e EV/EBIT on our unrevised estimates. There is a webcast at 10.00 CET (link).