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Third party research

Energy Save: Expect a gradual recovery - ABG

ES Energy Save Holding

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

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Q4 sales +25% y-o-y, +4% q-o-q, FCF positive
We expect new OEM partnerships to ramp up towards end '25e
Aira will remain a growth driver in the near-term


Aira remains a growth driver

Despite the continued market weakness Q4 sales were up y-o-y (+25%) and q-o-q (+4%), to SEK 53m. Sales were driven by continued deliveries to Aira, while Commercial and ES-branded sales remained subdued. We expect sales to remain at a similar level in the coming quarters and to pick up gradually towards the end of the year, as the company's new OEM partnerships begin to bear fruit. We expect the Aira partnership to continue to be the growth driver in the near-term, and estimate the agreement to generate ~SEK 200m in revenues for '25e. Furthermore, we find it positive that inventory declined further and that cash balance was up (SEK 54m in Q4), which we believe will support the company until FCF turns positive in '26e.
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