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Third party research

Inission: Lowers FY financial targets - ABG

Inission

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

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- FY sales SEK 2.1-2.2bn (prev. 2.4bn), EBITA margin 6% (prev. 7%)
- Not unexpected, weak data since Q2, share down 22% L3M already
- EMS market recovery in Q2-Q3'25e, cost savings help H1'25 margins

Lowers FY targets, but share already down 22% L3M
In a press release this morning, Inission announced that it is lowering its FY financial targets. The company now guides for sales of SEK 2.1-2.2bn (previously 2.4bn) and an EBITA margin of 6% (previously 7%). The new midpoint is 5% below our post-Q2 estimates on sales, and 17% below on EBITA. This was not entirely unexpected, considering the weak data points that have been released since Q2, such as peer results and guidance, and the Inission share was already down 22% L3M before this morning's press release.

Market recovery in Q2-Q3'25e, cost savings help H1 margins
The Nordic EMS market is clearly weak at the moment, with all companies in the space struggling with wavering demand, and we do not think there will be significant demand recovery until Q2-Q3'25e, but margins in H1'25 should be better than in H2'24, as cost reductions catch up to the weaker volumes.
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