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Third party research

Inission: Demand stabilisation in sight - ABG

Inission

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

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Q4e sales -4% y-o-y (-11% org.), adj. EBITA margin 4.6% (6.5%)
Q4 to suffer from demand weakness, but orders to keep improving
Demand to stabilise in H1, pick-up in H2, cost reductions effect in H1


Q4 expectations

We make no significant changes to our Q4 estimates, still expecting order intake of SEK 540m, sales of SEK 533m, down 4% y-o-y (-11% organically), and an adj. EBITA margin of 4.6% (6.5%). This implies that Inission will narrowly beat its full-year guidance of SEK 2.1bn-2.2bn in sales and an EBITA margin of 6%, and we estimate SEK 2.15bn and 6.1%, respectively. Order intake improved in Q3, resulting in a book-to-bill slightly above 1.0 in September, and we expect this to have continued during Q4, setting the stage for a stabilisation in H1, and recovery in H2 this year.
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