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Sweden's Railcare Q1 sales rise

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

MetricBeat/MissActualConsensus Estimate
Q1 SalesSEK 152.10 mln
Q1 EBITSEK 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 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.)

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