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Third party research

Nexam Chemical: Q4 in line with pre-announcement - ABG

Nexam Chemical Holding

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

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* Q4 sales of SEK 43m (-11% y-o-y), in line with pre-announcement
* EBIT SEK -4m (vs. SEK -2.5m LY)
* Recycling continues to grow (FY'25 sales up ~3x vs. '24)


Q4 results

Nexam's Q4 sales were roughly in line with the pre-announced figures from 22 December, i.e. SEK 43m (vs. SEK 44m pre-announced), -11% y-o-y and -4% q-o-q. EBIT was SEK -4m (vs. -2.5m LY). The company states that Q4 was weaker than expected due to High Temperature, as its largest customer experienced an inventory build-up and did not place any orders during the quarter. Moreover, in Q4, Nexam announced that it is carrying out a rights issue of SEK 51.8m (~SEK 6.6m in costs), fully guaranteed. Proceeds are intended to accelerate Nexam’s commercial expansion within the Recycling business area and to strengthen financial flexibility. The company ended the quarter with a cash balance of SEK 12m.


Estimate changes and outlook

On numbers alone, '25-'27e sales, prior to the pre-announcement, is impacted negatively by ~5% and EBIT by SEK -4m (vs. FY'25e EBIT of SEK -9m). On outlook, the company expects continued strong momentum in Recycling and targets doubling Recycling sales in '26 vs. '25. Management also states that the High Temperature weakness is temporary, driven by inventory build-up at its largest customer; orders are already placed for every quarter in '26, with normalisation expected from Q1'26.


Valuation

Nexam is trading at '26e-'27e EV/Sales of 1.2x-1.0x on estimates prior to the pre-announcement, vs. peers at 1.4x-1.1x.
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