Ferronordic: Prolonged market weakness in Germany - ABG

Q3e: Germany continues to weigh, US expected to be stable
Lowered estimates in Germany on prolonged market weakness
11x '25e EV/EBIT, 23% below distributor peers at 14x


Q3e: Germany weakness to weigh on group figures

We expect Ferronordic to report Q3 net sales of SEK 1,102m, with a fairly stable quarter in the US, while market conditions remain rough in Germany. As we see it, the room for further opex cuts in Germany is likely limited, and rather for the segment to return to positive EBIT would require an improved market. In Q2, group costs were above the historical average though, which the company explained as being within typical quarterly fluctuations, and thus we expect costs to come down sequentially into Q3. All in all, we estimate a group-level EBIT of SEK +10m (SEK -4m in Q2).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/ferronordic/Equity-research/2024/10/ferronordic---prolonged-market-weakness-in-germany/