* Sales SEK 247m (+8% vs. ABGSCe), adj. EBIT SEK 14m (vs. 15m)
* Scandpower EBIT miss on growth spend, offset by DRPS and FMWT
* Kärnfull Next acquisition completed, broadening new build exposure
Q2 results
Sales grew 9% y-o-y and were 8% above our estimate. EBIT adj. came in at SEK 14m (vs. ABGSCe 15m). EBIT included non-recurring items (acquisition costs and LTIP implementation) with a negative margin impact of 2.1pp. The margin miss was driven by Scandpower, which reported EBIT of SEK -5.4m (2.3) on costs related to long-term initiatives to drive sales growth. DRPS margins improved markedly to 7.0% (vs. ABGSCe 4.6%, 4.9% LY) due to a clearer focus on higher-margin services, higher capacity utilisation and continued cost discipline following the reorganisation. Moreover, FMWT reported a strong margin 18% on continued efficient execution and a favourable product mix. During the quarter, the acquisition of Kärnfull Next was completed.
Estimate changes and outlook
The Q2 numbers in isolation imply EBIT adj. comes down 2%. We note the company highlights that Scandpower revenue is H2-weighted and points to "several important opportunities" in the second half.
Company valuationOver the past three months, the share has returned -40%, compared to the +1% of the OMX Stockholm Allshare. The share is currently trading at 43x-30x '26e-'28e P/E. There is a conference call at 10:00 CEST, link here.