Ovzon: Positive EBITDA in Q3, and positive FCF in Q4e - ABG

Solid Q3, with more sequential improvements
'24e-'26e sales down 5-6% on slightly softer orders than expected
We expect the positive operational momentum to continue in 2025


Positive momentum continued

Ovzon's trend of gradually improving sales and margins continued in Q3, driven by recent order momentum. Q3 sales of SEK 95m represented organic growth of +34% y-o-y (+23% above our forecast), driven mainly by strong terminal sales (SEK 29m in the quarter). Combined with good cost control, Ovzon delivered its first positive EBITDA since Q1'20: SEK 12m (vs. ABGSCe SEK 4m). As the Ovzon-3 project was commercialised in July, Ovzon has now started to depreciate the asset, with D&A of SEK 35m in Q3 (vs. SEK 7m in Q3'23), consequently impacting EBIT. FCF remained negative, at SEK -41m, driving NIBD (excluding leasing) to SEK 632m, but the recent follow-up order with SSC should drive positive FCF in Q4e, as payments from this contract will be received in 2024.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/ovzon/equity-research/2024/11/ovzon---positive-ebitda-in-q3-and-positive-fcf-in-q4e/