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Eksterne analyser

Coor: Solid report with good CF and reduced gearing - ABG

Coor Service Management Holding

Dette er en ekstern analyse og afspejler ikke nødvendigvis vores perspektiv eller værdier.

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* Adj. EBITA 6% vs ABGSC, 1% vs consensus* Norway drove beat; cash flow solid and gearing down to 2.7x* Est's relatively unchanged; conference call at 10:00 CETQ3 resultsSales SEK 3,005m (2% vs ABGSC 2,944m and 2% vs cons 2,952m). Adj. EBITA 134m (6% vs ABGSC 127m and 1% vs cons 132m). EBIT 98m (-12% vs ABGSC 112m and -12% vs cons 112m). Net profit 43m (-26% vs ABGSC 58m and -25% vs cons 57m). Organic growth was better (4% vs ABGSC 1%) but driven by unusually high variable volumes in Norway. Margins continued to recover (4.5% vs 4.1% last year), and cash conversion (FCF/EBITA) was solid (78%) leading to R12M cash conversion improving to 53%, up from 40% last quarter. Gearing was reduced to 2.7x vs 2.9x last quarter.Preliminary estimate changesWhile there was a small beat vs consensus, it was mainly driven by variable volumes in Norway, which currently are at unusually high levels which we should be careful to extrapolate. We therefore expect limited estimate revisions, but if anything, slightly positive.Final thoughtsThe report was solid, with continued improvements in margins, cash conversion and leverage. The gearing is now below the target of <3.0x but slightly above where the company aims to be over time (2.0-2.5x). However, we expect that it will reach that range in Q4. The share has performed well recently, +9% L3M, vs. OMXSGI +5% but still trades relatively in line with our group of service peers at 10x EBITA for 2026. Management will host a presentation of the report at 10:00 CET, you can use this link to participate in the webcast.
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