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Balco Q2: Weak order intake with lower than expected gross margin - SEB

Balco's Q2 report came in weaker than we expected; concerns regarding price inflation and customers unwilling to invest in new projects seem to be the theme of the report. CEO Mr. Lundahl believes that the weak order intake will stabilise as the macro environment and interest rates stabilise. The margin decline was mainly due to the loss of projects in Norway, which ignited a restructuring of the Norwegian organisation.

Balco's Q2 report came in weaker than we expected; concerns regarding price inflation and customers unwilling to invest in new projects seem to be the theme of the report. CEO Mr. Lundahl believes that the weak order intake will stabilise as the macro environment and interest rates stabilise. The margin decline was mainly due to the loss of projects in Norway, which ignited a restructuring of the Norwegian organisation.
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