I-tech: Ending the year on a high note - ABG

Q4: Sales SEK 58m, +129% y-o-y, EBIT margin 29%
'25e-'26e sales up 10-12% and EBIT adj. up by 18-19%
Customer diversification driving growth

Another solid quarter
I-Tech delivered strong Q4 results and reported sales of SEK 58m, up +129% y-o-y (+120% organic, 9% FX). EBIT was SEK 17m (ABSCe 9m) for a margin of 29% (ABGSCe 24%). Lease-adj. FCF was SEK 5.9m (14m). The strong beat was mainly due to I-Tech's broad-based sales across all its customers.

Estimates and outlook
We raise '25e and '26e sales by 10% and 12% and adj. EBIT by 18% and 19%, respectively, after the report. I-Tech is continuing to diversify its customer base, with its largest customer, CMP, constituting ~66% of sales in 2024 compared to ~80% in 2023, while still growing 20% in 2024. PPG, a recent addition to I-Tech's customer list, launched its Nexeon 810, a copper-free antifouling product containing Selektope, in the first half of 2024. After its launch, sales grew significantly throughout the year. In terms of market expansion, the company highlighted in its report that the dry-docking market segment is becoming more accessible to I-Tech thanks to its broader customer base, which we see as positive in terms of contributing to Selektope's growth in the coming years.

Fair value range up to SEK 70-180
We find it promising to see that I-Tech is continuing to grow and that new customers are continuing to move forward with I-Tech despite the ongoing EU regulatory process. During the quarter, I-Tech announced that it had signed a supply and licence agreement with an additional Asian-based customer. The stock is trading at 11x-5x the '25e-'27e EV/EBIT and 14x-9x the P/E, i.e. ~60% below the peer median. We raise our fair value range to SEK 70-180.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/i-tech/Equity-research/2025/2/i-tech---ending-the-year-on-a-high-note/