Overview
Sweden chemical ID firm's Q1 net sales fell sharply yr/yr, with negative EBITDA and EBIT
Serstech secured 10 mln SEK loan to support inventory build-up amid supply chain risks
Outlook
Company anticipates positive cash flow and a solid EBITDA margin for full-year 2026
Serstech expects coming quarters to be substantially stronger than the first quarter
Result Drivers
GROSS MARGIN IMPROVEMENT - Co said fully operational in-house production contributed to higher Q1 gross margin (72% vs 61% in 2025)
ORDER VARIABILITY - Co said Q1 sales were in line with its own expectations and expects coming quarters to be substantially stronger due to large orders from returning customers
INVENTORY BUILD-UP - Co is increasing inventory of components and finished goods to mitigate risk of supply shortages amid geopolitical uncertainty
Company press release: ID:nGNE6yfHzz
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
SEK 6.53 mln
Q1 EPS
-SEK 0.03
Q1 EBIT
-SEK 6.52 mln
Q1 EBITDA
-SEK 4.28 mln
Analyst Coverage
Wall Street's median 12-month price target for Serstech AB is SEK0.80, about 84.3% above its April 27 closing price of SEK0.43
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.)