Projektengagemang: Solid performance in a challenging market - ABG

Weakness in Architecture behind negative growth
Settlement fee explains '23e EBITA revisions
Strong cash flow in Q1 from one-time effects


Q1: -2% organic sales y-o-y, adj. EBITA margin of 7.3% (8.0%)

Projektengagemang (PE) reported Q1 net sales of SEK 246m (-2% y-o-y) and EBITA of SEK 12.7m (20m). It was 3% and 25% below ABGSCe, however, adjusted for a settlement cost to Soleed Sweden AB of SEK 5.2m, adj. EBITA was SEK 17.9m and 5% above ABGSCe. In terms of business areas, tough conditions in Architecture & Management resulted in negative organic growth and declining profitability, whereas Systems continued to recover and reported organic growth of 5.3% with increasing profitability. Civil Engineering & Environment were flat y-o-y organically with solid profitability, albeit lower than last year. FCF of SEK 44m (1m) was strong in Q1 driven by one-time tax benefits, as a result net debt decreased to SEK 250m (292m).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/projektengagemang/Equity-research/2023/5/projektengagemang---solid-performance-in-a-challenging-market/