Berner Industrier: Soft orders and margin, but better from here - ABG

Demand weak as expected, but improved by quarter-end
Comps also ease in Q4, return to order growth likely
One-offs but underlying margin also softer, '25e-'26e EBITA down 4%


Q3 results

Q3 orders and sales were much in line with our expectations, decreasing 17% and 3% y-o-y, respectively, as demand remained sluggish. Larger orders in particular have continually been pushed forward by customers, while the base business has remained at decent levels. Demand headwinds are affecting the T&D segment especially hard, while E&E is still growing, albeit at a slower pace. The EBITA margin of 6.9% (8.5%) was worse than we expected, with both segments decreasing y-o-y, although E&E faced very tough comps due to mix effects. T&D profitability continued to be hampered by non-recurring costs pertaining to temporary resources to improve the operations of Christian Berner AB, but also by the implementation of a new business system in one of the Norwegian companies. The magnitude of these costs was unspecified, and we make a conservative guess of SEK 1.5m.

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