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Third party research

Ferronordic: Germany weak but likely stabilising - ABG

Ferronordic

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

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Q2 report due on Thursday, 14 August
Sales and margin downgrades in Germany weigh on estimates
Trading at 13-10x '26e-'27e EV/EBIT


Q2e: Germany stabilising, slightly better US gross margin

We expect Ferronordic to report Q2 sales of SEK 1,111m, up 1% y-o-y, and EBIT of SEK 24m, for a margin of 2.1% (-0.3%). At the segment level, we expect price pressure amid a weaker market to continue weighing on the gross margin, although we anticipate an improvement compared to Q1 as the negative mix effect will not necessarily be repeated. Meanwhile, in Germany, we expect to see fairly stable earnings q-o-q, with the company saying it is now done adjusting the cost base. Finally, on cash flow, we note that Q1 was the first time in eight quarters where net debt came down sequentially. Reducing the leverage further should remain a near-term priority for Ferronordic.
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