* Q3 NAV 4% above ABGSCe
* Impressive performances by DPP and Safe Life
* P/NAV well below historical average
Q3: NAV beat despite continued Green weakness
Byggmästaren reported Q3 NAVPS of SEK 62.64, 4% above our estimate. NAV declined 2.8% q-o-q (SIXRX +2.4%), weighed down by continued weakness in Green Landscaping (-39%), now representing 11% of GAV. Total shareholder return was -8%, as the NAV discount widened from 20% to 24%. Activity remained high, including two acquisitions by Safe Life, Infrea's pending merger with Netel, and Team Olivia's planned divestment of its Danish operations, which we expect to generate additional proceeds for Byggmästaren. The balance sheet remains strong, with SEK 413m in available liquidity (ABGSCe net cash SEK 253m). Byggmästaren remains ready to invest in existing or new holdings and pursue further buybacks.
Private portfolio: Strong momentum in core holdings
The private portfolio continued to perform strongly, with valuations up SEK 70m, mainly driven by DP Patterning (DPP, 19% of GAV) and Safe Life (46% of GAV). DPP again delivered exceptional sales growth at a 49% EBITDA margin, and we estimate that Byggmästaren's valuation implies <4x our estimated FY EBITDA. Sales remain concentrated, but numerous pilot projects with potential new clients support the outlook. Safe Life delivered >20% organic growth, while its pro forma LTM adjusted EBITA margin was 9.4%, with further margin potential as recent investments begin to yield benefits.
Discount of 23% remains wide
Byggmästaren is trading at a 23% NAV discount, compared with a historical average of 10%, despite the strong performance of its core private assets and the impressive long-term track record. Green Landscaping has weighed on the recent performance and investor sentiment, but the current discount offers potential. We fine-tune our fair value range to SEK 53–62 (54–64), reflecting NAV changes since our last update.