Nordic Waterproofing: Delivering on promises without any fuss - ABG

• Q2 in line with prior mgmt. outlook statements
• Only change to ests. is updated FX, -1% on EBIT
• 11x '23e EV/EBIT on bottom-of-cycle earnings

Not much fuss in Q2, in line on org. growth and EBIT
Nordic Waterproofing (NWG) reported EBIT in line with ABGSCe and +3% vs. consensus, and organic growth of -9% (of which vol/price split was -14%/+5%), which was slightly better than our expected -11%. As expected, the two problem areas at the moment are prefabricated elements, which has ~90% newbuild exposure, and EPDM roofing in Continental Europe, where certain competitors have started lowering prices. Meanwhile, the core bitumen roofing business in the Nordics (~60% of sales) continues to be stable. All of the above was essentially in line with management's prior outlook statements, and as such the conclusion of the Q2 report is that the company delivered on all its promises.

Länk till analysen i sin helhet: https://cr.abgsc.com/contentassets/a54c25528e8d45848f02c9c3710789d0/pdf/delivering-on-promises-without-any-fuss.pdf