Alcadon: Wood M&A drives sales and EBITA growth - ABG

Q2e: Wood acquisition drives sales and earnings growth
We cut adj. EBITA by 4-1% for '24e-'25e
Fredrik Valentin announced as new CEO, starting Jan '25


Q2e: EBITA growth driven by Wood acquisition

We expect Alcadon to deliver Q2 net sales of SEK 427m, up 15% y-o-y, of which +6% organic. The majority of the growth stems from the newly-acquired Wood Communications (consolidated 2 April). However, we also expect a pick-up in organic growth, driven by continued strong growth in data centres while fibre-to-the-home (FTTH) sales should stabilise at a low level. The Wood acquisition is also margin-accretive, and this results in our estimated Q2 adj. EBITA of SEK 33.3m, up 56% y-o-y, for a margin of 7.8% (5.8%).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/alcadon/Equity-research/2024/8/alcadon---wood-ma-drives-sales-and-ebita-growth/