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Third party research

Alcadon: Very strong cash flow, adj. EBITA roughly in line - ABG

Alcadon Group

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

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Adj. EBITA -2% vs. ABGSCe, but very strong cash flow
Q2 numbers imply no material adj. EBITA revisions
Share trading at 10-7x '24e-'25e EV/EBITA (adj.)


Q2 outcome

Sales were SEK 425m (-1% vs. ABGSCe 427m), up 15% y-o-y, of which 6.7% organic (ABGSCe 6.1%), while the M&A contribution from Wood Communications was somewhat smaller than expected. The gross margin was notably above expectations at 26.7% (ABGSCe 24.6%), marking a 2.5pp y-o-y increase. However, higher-than-expected opex led to adj. EBITA being roughly in line at SEK 32.6m (-2% vs. ABGSCe 33.3m), for a margin of 7.7% (ABGSCe 7.8%), and this included one-offs of SEK -2.2m from acquisition costs and FX revaluations on earn-outs. Cash flow was very strong with a lease adj. FCF/EBITA of 183%, driven by a major working capital release of SEK 43m (~5% of mcap).
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