Third party research

Prevas: Stable underlying margins - ABG

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

* Sales of SEK 426m, organic decline of 3%
* Adj. EBITA of SEK 40m, and a margin of 9%
* Continued growth within defence, up 22% y-o-y


Q1'26 details

Prevas reports Q1'26 sales of SEK 426m (-3% vs. ABGSCe 440m), down 1% y-o-y with an organic decline of ~3%. EBITA was in line with our expectations at SEK 36m, (vs. ABGSCe 37m), with a margin of 8.4% (vs. ABGSCe 8.4%). However, adj. EBITA came in stronger than we expected, which was affected by SEK 3.8m of restructuring costs related to Denmark and Skåne, resulting in an adj. EBITA margin of 9.3%. Net FTEs declined, reflecting continued adjustments to market conditions.


A stable start to the year

Defence continues to grow, and this quarter was no exception, with sales up 22% y-o-y, representing ~17% of group sales in Q1. Telecom also showed strong momentum, sales up 35% y-o-y, which we attribute to increased investments in the segment. Finland also continues to grow, although customers are increasingly postponing investment decisions, the region increased its sales by ~6% y-o-y.


Valuation

Prevas is trading 8-7x on '26e-'27e EV/EBITA on our unrevised estimates.