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Third party research

Coor: More to come - ABG

Coor Service Management Holding

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

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We raise '25e-'27e adj. EBITA by 10-1% on higher margins
Low renegotiation risk 2025 and growth upside in Norway
Improved balance sheet & CF opens for buybacks/raised dividend


We see a positive trend in growth and margins

As expected, organic growth (-2%) was held back by normalised variable volumes and the termination of the SAAB contract. Encouragingly, management said on the call that variable volumes were stable in April despite the macro turmoil. Alongside easier comps, this helps us to envision a return to growth in Q2-Q3. While we only expect modest growth in H2 (~2%), there could be upside from Norwegian municipalities that have started to explore outsourcing. With the extension of Equinor in Q1, there are few big contracts up for renegotiation in 2025, limiting the downside. Better margins was the highlight of Q1 (4.7% vs. consensus' 4.2%, 3.3% in Q4), driven by both Sweden and Denmark (even after a positive one-off adjustment). With the full effect of the cost savings expected in H1, we think margins will improve further in Q2 and reach a 5.5% run-rate in H2.
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