Nordic Waterproofing: In line on org growth and EBIT – ABG


• EBIT SEK 143m (0% vs. ABGSCe 143m)
• No material cons EBIT revisions expected
• 11x ’23e EV/EBIT (adj.) on pre-Q2 numbers

Q2 outcome
Sales were SEK 1,292m (2% vs. ABGSCe 1,270m, 3% vs. FactSet cons. 1,256m), organic growth was -9% (ABGSCe -11%), of which vol/price split -14%/+5% (ABGSCe -15%/+4%). EBIT was 143m (0% vs. ABGSCe 143m, 3% vs. cons 139m), down 21% y-o-y, for a margin of 11.0% (ABGSCe 11.3%, cons 11.0%). Slight EBIT miss on Products & Solutions was offset by stronger Installation Services. Solid FCF at SEK 116m (81% of EBIT). While volume growth is still negative (largely due to prefab elements, which is ~90% newbuild exposure), we note that for H2
comps get easier.

Estimate changes
We expect no material changes to consensus EBIT for ’23e-’25e.

ABGSC Commissioned Research