Nederman Q3 profit, margin decline as sales fall

Nederman Holding AB

Wed 07:10

Overview
Sweden environmental tech firm's Q3 orders rose 12% currency-neutral, but sales fell 2%
Adjusted EBITA and net profit declined yr/yr as margins narrowed
Company says strong order intake driven by investments and expansion into new industries

Outlook
Company expects a strong finish to the year, citing solid order backlog and pipeline
Nederman sees potential positive earnings impact if SEK remains weak against the USD
Company says customers remain cautious on major investments due to uncertain macro environment

Result Drivers
ORDER INTAKE - Co said strong inflow of both small and medium-sized orders and larger projects across all divisions drove Q3 orders
INVESTMENTS IN PRODUCTION AND LOGISTICS - Co said investments in production and logistics, especially in US and Europe, helped secure larger orders and improve profitability
EXPANSION INTO NEW INDUSTRIES - Co said adapting offerings and acquisitions enabled entry into defence, pharmaceutical, metal recycling and semiconductor sectors

Company press release: ID:nWkr6l6lCR

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
 
SEK 1.42 bln
 
Q3 EPS
 
SEK 1.68
 
Q3 Net Income
 
SEK 59.10 mln
 
Q3 Adjusted EBITA
 
SEK 131.10 mln
 
Q3 Adjusted EBITA Margin
 
9.20%
 
Q3 Orders
 
SEK 1.41 bln
 

Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the environmental services & equipment peer group is "buy."
Wall Street's median 12-month price target for Nederman Holding AB is SEK160.00, about 13.5% above its October 20 closing price of SEK141.00
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads
Oct 21 - Sweden's Husqvarna slightly misses Q3 sales estimates amid weak demand
Oct 21 - Sweden's SKF misses Q3 sales, operating profit estimates
Oct 21 - Sweden's HMS Networks Q3 sales rise 15%, meet expectations

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)