Sweden's Sweco tops Q2 revenue estimates on strong end-market demand
Sweden's Sweco tops Q2 revenue estimates on strong end-market demand
Overview
Sweden architecture and engineering firm's Q2 revenue rose 9%, beating analyst expectations
Q2 EBITA increased 7% yr/yr but missed analyst estimates
Company cites improved efficiency, higher fees, and acquisitions as drivers of results
Outlook
Sweco says demand remains strong in infrastructure, water, environment, energy, security and defence
Company plans to focus on growth segments, internal efficiency and M&A going forward
Sweco aims to stay at forefront of emerging trends and technology, including executing on AI strategy
Result Drivers
EFFICIENCY GAINS - Improved internal efficiency and a higher billing ratio supported Q2 financial performance
HIGHER FEES - Increases in average fees contributed to revenue and EBITA growth, particularly in Sweden and the Netherlands
ACQUISITIONS - Recent acquisitions, including Projektengagemang and Platom, added to Q2 results
Company press release: ID:nWkr6JbPZK
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | SEK 8.57 bln | SEK 8.48 bln (4 Analysts) |
Q2 EPS |
| SEK 1.66 |
|
Q2 Net Income |
| SEK 601 mln |
|
Q2 EBITA | Miss | SEK 864 mln | SEK 881.83 mln (4 Analysts) |
Q2 EBIT |
| SEK 844 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction & engineering peer group is "buy"
Wall Street's median 12-month price target for Sweco AB (publ) is SEK185.00, about 39.4% above its July 16 closing price of SEK132.70
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 18 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.)