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Third party research

Ework Group - Surprisingly resilient - ABG

Ework Group

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

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Q2 results
Q2 sales were SEK 3,601m (+1% vs. ABGSCe 3,550m), -13% y-o-y. Gross profit was SEK 148m (+2% vs. ABGSCe SEK 145m), -5% y-o-y, while EBIT was SEK 45m (+32% vs. ABGSCe 34m due to 7% lower costs). Encouragingly, the gross margin continued to increase, coming in at 4.1%, driven by Ework's continued focus on a better sales mix combined with the recent portfolio rebalancing.

Q2 thoughts
After a weak start to the year, Ework delivered solid Q2 results, showing resilience in both the topline and margins, especially compared to the weak Q2 numbers reported by several of its peers. The customer portfolio is now in a much better place than a couple of quarters ago. Together with a greater focus on margin-accretive services, this bodes well for further margin expansion. Nevertheless, the market remains weak, and visibility on when it will recover remains limited. Regarding the outlook, Ework highlights that increased sales volumes (i.e. an improved market) are needed for profit growth. Nevertheless, it highlights a positive margin outlook, supported by recent cost measures.

Estimate changes
Following the Q2 report, we expect consensus to raise '25e-'26e adj. EBIT estimates LSD on higher margin assumptions.
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