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Christian Berner Tech Trade: We raise estimates on continued improvements - ABG

Another strong quarter, order intake up 33%, EBITA margin 9.8%
Marks the fourth quarter in a row with profitability improvements
Long-term EBITA margin up to 8% (7%), fair value up to SEK 35-45


Q3: Strong on all items

Order intake was SEK 241m in Q3, up 33% y-o-y, while sales was SEK 224m, up 12% y-o-y (11% org.), as the Energy & Environment segment grew 37% organically. Adj. EBITA was SEK 22m (17m) for a margin of 9.8% (8.7%), marking a record for the company. The profitability improvement was driven by the E&E segment, which delivered a margin of 17.1%, while the Technology & Distribution segment had a margin of 6.8%. Adj. net income was SEK 14m (12m), for a margin of 6.4% (6.0%), which converted into adj. EPS of SEK 0.77 (0.64). The lease adj. FCF of SEK 33m (10m) was also very strong, boosted by SEK 12m (-6m) in NWC release.
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