* Orders +8%, sales +1%, adj. EBITA -9% vs. ABGSCe * Sees recovery amongst customers, Enedo profitable from Q1 * 14% organic growth and margin expansion in Inission segment Q3 results Orders were up 24% y-o-y and 8% above our estimate, continuing to show strength after three quarters of solid order growth. Sales grew 14% y-o-y and were 1% above our estimate. With a margin of 6.1%, 0.7pp below our estimate, EBITA adj. was 9% below our estimate. EBITA included non-recurring items with a negative margin impact of 0.7pp pertaining to cost saving measures in Enedo, which have now been concluded. The Inission segment performed well, growing 14% organically and increasing its adj. EBITA margin by 1.4pp y-o-y, while Enedo continued to struggle. There is a conference call at 09:00 CET: webcast Estimate changes The Q3 numbers in isolation imply EBITA adj. comes down 2%. Management states that it sees a clear recovery amongst customers in both segments, and expects Enedo will be back to profitability in Q1 now that the organisational changes have been concluded. Company valuation While adj. EBITA was 9% below our estimate, orders were good and sales in line, and we think that the more important takeaway from the report was the significant y-o-y improvement in the Inission segment and management's forecast of positive EBIT in Enedo from Q1. Over the past three months, the share has returned +12%, compared to the Nordic EMS peer median of -1% and the +5% of the OMX Stockholm Allshare. The share is currently trading at 14x-8.4x '25e-'27e P/E, compared to its 10-year historical median of 13x-8.7x and peers at 18x-12x.
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