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Third party research

Nolato: Bigger margin lift than expected - ABG

Nolato

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

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EBITA SEK 271m (+3% vs. ABG, +6% vs. IR cons)
We expect cons EBITA upgrades of 3-4% for '25e
15-13x '25e-'26e EV/EBITA on pre-Q1 estimates


Q1 outcome

Sales came in at SEK 2,453m (-3% vs. ABG SEK 2,527m, -2% vs. Modular Finance IR cons SEK 2,494m), up 0.5% y-o-y, although organic growth was -1% (ABG +3%). Despite the slight miss on top-line, EBITA was strong at SEK 271m (+3% vs ABG 264m, +6% vs. cons 257m), for an EBITA margin of 11.0% (ABG 10.4%, cons 10.3%). The highest quality segment - Medical Solutions - was 9% above consensus on EBITA, while Engineered Solutions was 1% above, and both segments reported a 1.0pp and 0.5pp higher margin, respectively, compared to consensus expectations. FCF was poor at SEK -136m, but this is explained by seasonal working capital build-up.
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