Projektengagemang: Weak demand for architects a headwind - ABG

We expect a return to sales growth in H2 '23
Resilient despite the tight market conditions
Focus on ability to offset wage inflation in Q2


Q2e: Sales -3% y-o-y and adj. EBITA margin of 3.5% (8.9%)

We think Projektengagemang (PE) is facing some headwinds going into Q2, as the demand for architects in Sweden has decreased further in Q2 compared to Q1, and in conjunction with wage inflation and a negative calendar effect, this will probably weigh on EBITA margins in the quarter. On a more positive note, it seems that demand for PE's other divisions (Civil Engineering & Environment and Systems) is not as greatly affected. Furthermore, PE remains resilient and posting profits despite the challenging market it is facing. We expect Q2 sales to be down 3% y-o-y with an EBITA margin of 3.5% (8.9%), with the weak profitability from calendar effects and assumed pressure from wage inflation.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/projektengagemang/Equity-research/2023/7/projektengagemang---weak-demand-for-architects-a-headwind/