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Third party research

Clavister: Secures defence order of SEK 26m - ABG

Clavister

This is a third party research report and does not necessarily reflect our views or values

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* ~SEK 26m defence order announced earlier today* Backlog of ~SEK 390m* Provides additional visibilityNew defence order worth ~SEK 26mClavister has received an order worth ~SEK 26m from BAE Systems Hägglunds for its CyberArmour solution, to be integrated into additional CV90 vehicles for a Nordic nation. Given the timing and scope, we believe this order is linked to Denmark's new CV90 contract with BAE Systems (announced on 21 November), which includes 44 additional CV90s, link here. We see this as positive, as CyberArmour is already integrated into the CV90s, enabling a scalable revenue stream as new orders are placed. Deliveries are likely to be scheduled between '27e and '30e.Defence keeps growingThe total backlog for Clavister in Q3 was ~SEK 360m, amounting to ~SEK 390m with the new order. Assuming ~40-50% gross margins, and the fact that Clavister requires few new investments to deliver on the contracts, we see high incremental cash flow potential from the current defence pipeline.Helps de-risk consensus estimatesWith deliveries likely to be scheduled in '27e-'30e, orders of this kind generally help de-risk FactSet consensus estimates. Typically, estimates reflect metrics two to three years in the future, and for companies such as Clavister, with long contracts, these types of contracts help provide incremental visibility to both sales and earnings.
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