* EEs +7%, sales +8%, adj. EBIT +53% vs. ABGSCe * Stronger EBIT driven by series production and milder FX * March marked first y-o-y production increase in 15 months
Q1 results
Sales fell 7% y-o-y but were 8% above our estimate. Annualised engine equivalents produced were 3.0m, falling 3% y-o-y, and were thereby 7% above our estimate. Importantly, March marked the first y-o-y production increase in 15 months. Sampling cups sold increased 2% y-o-y, and were 9% above our estimate. With a margin of 25.2%, 7.3pp above our estimate, EBIT adj. was 53% above our estimate, driven by the higher than expected series production revenues and a milder negative FX hedge revaluation effect than we had forecast.
Estimate changes
The Q1 numbers in isolation imply EBIT adj. comes up 5%. The return to production growth in March lends welcome support to the company's outlook for recovery and growth this year. The company continues to view upcoming new production programmes favourably, reiterating its ambition for 8m EEs in '31, and specifying that this should correspond to revenue well in excess of SEK 200m.
Company valuation
Over the past three months, the share has returned -4%, compared to the +1% of the OMX Stockholm Allshare. The share is currently trading at 20x-13x '26e-'28e P/E, compared to its 10-year historical median of 22x-15x.