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Third party research

Infrea: Accelerating growth, decelerating losses - ABG

Infrea

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

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Q1: +29% org. sales growth, SEK 9m adj. EBITA improvement
'25e-'27e adj. EBITA up 19-4%, 34% CAGR '24-'27e
9-5x EBITA '25e-'27e, 16-19% FCF yields


Growth took off in Q1

Infrea delivered a solid Q1 with sales 25% above ABGSCe, while organic sales were +29% (ABGSCe +3%, +4% Q4'24) due to Land & Construction and Paving services growing 30% and 67% organically, respectively, as services could continue in the mild winter. Adj. EBITA improved by SEK 9m y-o-y, or SEK 6m above our expectation due to a one-off from the divestment of Mikaels Grävtjänst adding SEK 6m to adj. EBITA. L&C had ~SEK 7m negative project revisions in Q1'24; adjusting for this, earnings growth was flat y-o-y. Water & Sewage was flat, both in terms of sales and earnings, and we expect no change to this. After passing the smallest quarter (~15% of sales) and as the market remains tough, we expect adj. EBITA to increase by SEK 9m y-o-y in Q2'25 and then continue with ~13% growth in H2'25e, supported by stable organic growth of 2-3%. Cash flow was weak at ~23% of adj. EBITA, and yielded a gearing of 2.0x.
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