Nordic Waterproofing: No drama despite Q1 miss - ABG

A miss, but keep in mind Q1 is ~5% of FY EBIT
We cut '24e-'26e adj. EBIT by 3-1%, some risk of more price pressure
Share trading at 13-10x '24e-'25e EV/EBIT


Q1 was tough, but also a seasonally small quarter

Q1 marked a tough start to the year for Nordic Waterproofing (NWG), with -13% organic sales growth and an adj. EBIT of SEK -15m (ABGSCe SEK -9m, FactSet consensus SEK -5m), which was driven by unusually harsh winter conditions impacting the Installation Services segment, as well as a generally weaker market environment. The struggles were most prominent in Finland, while other geographies were more stable, yet management mentions that it is looking to slim down the cost base throughout the Group. Heading into Q2e, we expect a slight y-o-y margin improvement against fairly weak comps, noting that since last year there has been some cost-cutting in the main problem areas that should help margins.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/nordic-waterproofing/Equity-research/2024/4/nordic-waterproofing---no-drama-despite-q1-miss/