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Third party research

Infrea: Gradually finding its form - ABG

Infrea

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

Download report (PDF)
Q1 report Tuesday, 29 April at 08:30 CET
'25e EBITA up 2%
10-5x EBITA in '25e-'27e, 16-19% FCF yields


Seasonally weak quarter

We expect Infrea to deliver a solid Q1 report, continuing on its internal improvement journey. Q1 is a seasonally weak quarter (15% of sales) because of the weather, but in terms of organic growth, we expect +3% (+3% in Q4), as the market is slowly starting to move forward in Land and Construction (+3%). Given the seasonality, we expect fairly strong sales of SEK 328m, +3% y-o-y. We forecast adj. EBITA of SEK -41m, +6% y-o-y, with a margin of -12.5% (-13.6% Q1'24), as we believe the market has started to brighten and the internal focus continues. Finally, Infrea announced the divestment of Mikaels grävtjänst after the end of the quarter, a company with SEK 36m revenue and SEK 0.8m EBIT '23, sold for SEK 40m. This is a part of Infrea's strategy to reallocate capital as well as focus on the core operation.