Freemelt: First eMELT agreement supports estimates - ABG

Q3e: Two Freemelt ONE deliveries, sales SEK 10.3m, up 28% y-o-y
First eMELT agreement with large global production company
No significant estimate changes, but agreement supports '24e-'25e


Q3e: Two Freemelt ONE deliveries

The company has previously announced two Freemelt ONE orders, which it expects to deliver in Q3'23. We estimate that this will translate into sales of SEK 10.3m, up 28% y-o-y. We believe costs will remain largely in line with Q2'23 costs, and estimate EBIT of SEK -21m, and ABGSC adj. EBIT of SEK -11m. We also estimate that net income will equal EBIT and expect FCF and NCF of SEK -15m, bringing the cash balance to SEK 45m. On our estimates, the company will need to raise some additional capital towards the end of '24e.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/Freemelt/Equity-research/2023/10/freemelt---first-emelt-agreement-supports-estimates/