* Sales of SEK 405m, organic decline of ~2%
* Adj. EBITA of SEK 23m, and a margin of 5.7%
* Restructuring costs weigh on the quarter
Adj. EBITA softer than expected
Prevas reports Q2'26 net sales of SEK 405m (in line with ABGSCe SEK 407m), down slightly y-o-y with a negative organic growth of 2%. Adj. EBITA, which excludes SEK 8.0m of restructuring costs taken during the quarter, came in at SEK 23m (vs. ABGSCe SEK 28m), corresponding to a margin of 5.7% (vs. ABGSCe 6.9%).
Finland the swing factor
The quarter was shaped almost entirely by Finland, where cutbacks at large customers and postponed investment decisions weighed on results. We see this as a temporary setback rather than a sign of deeper structural issues, and view management's response as a necessary step given the weaker market backdrop. On another note, ~SEK 55m of new business was signed in June, including new Defence customers, pointing to a segment that remains fundamentally strong. Defence itself kept growing, with sales up 8% y-o-y to SEK 68m, and LTM defence revenue now ~SEK 280m (~17% of group sales).
Valuation and outlook
On our unrevised estimates, Prevas is trading at 8x adj. EV/EBITA, around 25% below the peer group, despite offering higher margins and stronger long-term growth prospects, in our view. The company is slowly but steadily heading toward a better cost structure and, on that front, signed orders which are likely to improve results in the coming quarters. Management will hold a presentation at CET 09.30 (link).