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Third party research

OssDsign: Lower sales but higher gross margin - ABG

OssDsign

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

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* 24% organic sales growth in Q4 (ABGSCe +27%)
Adj. EBIT -2% vs ABGSCe
* No change in outlook


Q4 results

OssDsign reported a mixed set of numbers in Q4 with lower sales but higher gross margin and good cost control. Q4 sales came in at SEK 45.1m (-5% vs ABGSCe SEK 47.3m, no consensus) and adj. EBIT of SEK -9.4m, -2% vs ABGSCe of -9.2m. The miss on adj. EBIT is attributable to lower sales as core opex came in better and gross was higher at 96.3% in Q4 (vs ABGSCe 95.5%). We are pleased to see that the 'sales and commission and fees' as percentage of sales continues to come down, was 47.6% in Q4 vs ABGSCe at 51.5%). Q4 reported EBIT was negatively impacted by CEO transition costs of SEK 12m (ABGSCe SEK 0m), booked as NRI. Organic sales growth in Q4 amounted to 24% (ABGSCe 27%).

Estimates

Company is not providing any outlook for 2026 or changing its mid-term financial targets of reaching sales of SEK >400m by 2028 and to become cash flow and EBIT positive in the second half of its 'Strategy Period' (2025-2028). Based on the deviation on adj EBIT in Q4, we expect FY'26e adj. EBIT to be revised down by mid- to high single digit.

Share price view

The stock has been soft into Q4, down 2-3% (-5d) and down weak YTD (-15%). Based on the miss on sales and deviation on adj EBIT, we expect to see a small negative share price reaction in similar magnitude as the estimated earnings revisions.
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