StrongPoint: Some light in a dark market - ABG

Q3: EBITDA of ~NOK 12m, Q4 likely flat
New targets achievable, but lower range more likely
Recovery postponed — '24 challenging, but '25 likely better


Q3 slightly better, Q4 likely flat

StrongPoint's Q3 showed promise, although the market continues to be plagued by long decision cycles and project postponements. Sales increased 7% y-o-y on easy comps, an improvement vs. the -13% y-o-y decline on average in the last 4Q. Total revenues were NOK 313m, largely in line with our NOK 315m. GP was +1% vs. our estimate, giving a GM of 42.7% (ABGSCe 42%). EBITDA came in at NOK 12m vs. ABGSCe at NOK 10m, driven by the cost reduction measures implemented in Q2 — good to see that the measures have started to show positive effects. StrongPoint states that, while there has been an uptick in the results, the overall market remains uncertain, and it remains cautious about promising significant short-term improvements, but expects continued positive effects from cost cuts. Q4 EBITDA will likely be in line with Q3.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/StrongPoint/Equity-research/2024/11/strongpoint---some-light-in-a-dark-market/