Sweden's Enea Q2 sales fall on delayed deals
Sweden's Enea Q2 sales fall on delayed deals
Overview
Sweden telecom and cybersecurity software firm's Q2 net sales fell 2.6% yr/yr
Adjusted EBITDA margin dropped to 25.4% from 32.7% last year
Company says delayed customer decisions from geopolitical challenges weighed on Q2 sales
Outlook
Enea maintains 2026 guidance of single-digit currency-adjusted growth and adjusted EBITDA over 30%
Company targets average annual growth above 10% and adjusted EBITDA margin over 35% in 2028
Enea expects sales capacity investments to drive accelerated growth over time
Result Drivers
GEOPOLITICAL DELAYS - Co said geopolitical challenges, mainly in the Middle East, delayed customer decisions and negatively impacted Q2 net sales by SEK 7-10 mln
PORTFOLIO MIX - Growth portfolio net sales rose 11% currency-adjusted, but classic portfolio declined 29%, leading to overall flat sales
RECURRING REVENUE - Strong cash flow from operations mainly driven by higher contribution from recurring contracts
Company press release: ID:nMFN49qvtN
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 EPS |
| SEK 0.66 |
|
Q2 Net Income |
| SEK 12.50 mln |
|
Q2 Adjusted EBITDA | Miss | SEK 55.30 mln | SEK 61 mln (1 Analyst) |
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Enea AB is SEK92.50, about 34.8% above its July 14 closing price of SEK68.60
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)