Q2 sales were SEK 4,151m (+1% vs. ABGSCe 4,110m), -5% y-o-y. Gross profit was SEK 156m (0% vs. ABGSCe SEK 156m), -5% y-o-y, while EBIT was SEK 52m (+4% vs. ABGSCe 50m), 36% y-o-y, mainly due to higher capitalised development costs. The gross margin of 3.75% contracted from 3.78% in Q1, probably in part due to a lower share of Norway-related sales.
Q2 thoughts
Ework has been operating in a weak market for the past few quarters and this trend continued in Q2. However, Ework has started to see some positive trends in demand, especially in the private sector. Furthermore, we stress that around 50% of the 10% y-o-y decline in orders was due to the lost (margin-dilutive) Vattenfall deal. In terms of segments, automotive and life science remain strong, while finance and retail are showing positive momentum. However, the public sector remains weak. Furthermore, Ework's recent cost savings are contributing well to earnings, with opex down 15% y-o-y. On the outlook, Ework reiterated its FY24 outlook: gradually improving growth rates throughout the year (positive in Q4), but slightly negative metrics for the full year. Furthermore, it expects >30% EPS growth in 2024.
Estimate changes
Based on the Q2 report and on a preliminary basis, we expect consensus to make small estimate revisions. There will be a conference call at 13.00 CET
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