* Sales SEK 42m (vs. ABGSCe 49m), Perf. Chemicals main miss
* EBIT SEK -6.6m vs. ABGSCe -2.6m, despite a gross margin of 49%
* Recycling still strong at +66% y-o-y, pipeline up to 164 projects
Q3 results
Nexam reported sales of SEK 42m (-15% vs. ABGSCe 49m), -9% y-o-y. Q3 is seasonally the weakest quarter due to holiday shutdowns at customers, and management notes a cautious restart after the summer this year. Performance Masterbatch grew 2% and was in line with our estimate, while Performance Chemicals fell 20% y-o-y (-29% vs. ABGSCe). High Temperature was still hit by the inventory adjustment at its largest customer, and Lightweight was low after larger deliveries in Q2. Recycling grew 66% y-o-y to SEK 9.3m. The gross margin was 49% (ABGSCe 48%), but lower sales and higher costs took EBIT to SEK -6.6m (ABGSCe -2.6m).
Estimates and outlook
On numbers alone, '26e-'28e sales change by -3% and adj. EBIT by SEK -4m. Management expects the HT inventory adjustment to be completed by year-end. The Recycling pipeline grew to 164 projects in development/proof-of-concept (145 in Q2), with 14 (12) technically approved and 31 (28) customers in commercial business. First orders came in from the new distributors in France and Turkey.
Valuation
The share has returned -30% L3M (vs. peer median -17% and OMX Stockholm Allshare +3%), and is currently trading at 1.1x-0.9x '26e-'28e EV/Sales on our pre-report estimates vs. the peer median of 1.4x-0.7x.