Overview
Sweden railway maintenance firm's Q1 net sales rose 24% yr/yr to SEK 152.1 mln
Q1 operating profit rose to SEK 19.2 mln, with EBIT margin at 12.6%
Company winding down UK operations after years of declining volumes
Outlook
Railcare expects full-year Contracting segment volume to be somewhat lower than last year
Company expects relining operations full-year volume to be in line with previous year
Result Drivers
CONTRACTING SEGMENT - Strong improvement in Swedish Contracting operations, driven by extended snow clearance contract and early start to contracting works, supported profit and margins
TRANSPORT SEGMENT - Increased volume from clearance locomotives offset lower contracting transport services, resulting in stable performance
WORKSHOP ACTIVITY - Higher number of external assignments at Skelleftehamn workshop and high volumes at Långsele workshop contributed to results
Company press release: ID:nMFN4RDNMM
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
SEK 152.10 mln
Q1 EBIT
SEK 19.20 mln
Analyst Coverage
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 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.)