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Third party research

INVISIO: Q1 could be a set-back from the strong Q4 - ABG

INVISIO

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

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Momentum currently strong, but quarterly volatility remains
EBIT cut 8% on weaker FX
Share at 40x 2025e EV/EBIT, 34x 2026e


Strong momentum for defence stocks

Despite the strong share price momentum for the defence sector YTD (Invisio +37%, SAAB +89%, Rheinmetall +140% etc), the average and median 2025 sales estimates for the 13 largest global military stocks have only been raised by 1% so far. The long-term demand trend will likely remain a tailwind, and the stock market is certainly pricing this in, as growth expectations for global peers are still set to decelerate to 7-10% per year from their 2024 level (14-16%). The recent large military programmes announced by several European countries will certainly benefit the sector, as well as Invisio, in our view. The modernisation of infrantry will increase demand for hearing protection and communication systems, and Invisio holds a strong market position.
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