Alcadon: No drama, with Q1 in line - ABG

Adj. EBITA in line, we expect higher margins ahead
Minor revisions: adj. EBITA lowered by 2% p.a.
9x '24e EV/EBITA (adj.), 15% '24e-'26e adj. EBITA CAGR


No surprises in Q1, we expect improvements ahead

Alcadon's Q1 numbers came with no major surprises: adj. EBITA was in line with our expectations (SEK 27.3m vs. ABGSCe 27.6m), while cash flow was weaker due to a normal seasonal build-up of working capital. There is still a clear difference between product verticals, with fibre-to-the-home (FTTH) being weaker while data centre growth remains strong. While we see no slowdown on the horizon for data centres, we expect to see improvements in FTTH towards the end of the year. Moreover, we also note that the consolidation of the Wood Communications acquisition should lift margins as early as in Q2.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/alcadon/Equity-research/2024/4/alcadon---no-drama-with-q1-in-line/