Nordic Waterproofing: Tough quarter, but Q1 is seasonally small - ABG

Adj. EBIT SEK -15m (ABGSCe -9m, FactSet cons -5m)
Q1 a very small quarter, cons EBIT likely down 1-2% for '24e
Trading at 12-10x '24e-'25e EV/EBIT on our pre-Q1 estimates


Q1 outcome

Sales were SEK 804m (-7% vs. ABGSCe 867m, -9% vs. FactSet cons 880m), down 12% y-o-y, of which organic growth was -13% (ABGSCe -5%). Adj. EBIT was -15m (ABGSCe -9m, cons -5m), for a margin of -1.8% (ABGSCe -1.1%, cons -0.5%), and this excludes an NRI of SEK -6.4m (ABGSCe/cons -10m) from costs related to the mandatory bid by Kingspan. Products & Solutions came in above our expectations on EBIT, but Installation Services was below, largely on very tough winter conditions and a generally soft installations market. The company mentions it is carrying out further cost reductions throughout the group due to the weaker market.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/nordic-waterproofing/Equity-research/2024/4/nordic-waterproofing---tough-quarter-but-q1-is-seasonally-small/