* Sales SEK 1,128m & EBIT 37m * Adj. EBIT mechanically raises EBIT 1% * Share is currently trading at 11-7x '26e/'27e adj. EBIT
Q1 results
Sales SEK 1,128m (-1% vs. ABGSCe 1,143m, no cons), adj. EBIT 37m (7% vs. ABGSCe 35m), adj. EBIT margin 3.3% (ABGSCe 3.0%). EBIT beat vs ABGSCe driven by solid performance in Germany, alongside lower-than-expected group costs. NRIs 0m (ABGSCe 0). Net debt came up slightly to 1,957m (1,607m in Q4), which is seasonally tied to NWC buildup. We hope to hear more about how management continues to work with reducing leverage during the conference call.
Outlook and estimate changes
Management remains optimistic about US operations and environment ahead. In Germany they expect a recovery as fleet renewal requirements build, although higher fuel prices following the conflict in the Middle East adds uncertainty. The report would mechanically raise EBIT by 1%. Concl: In-line report, good to see positive EBIT results in the historically struggling German market.
Valuation
Prior to today's report, the share had returned -22% L3M, compared to the +1% of OMXSGI. The share is currently trading at 11-7x '26e-'27e EV/EBIT.