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Seafire: Q3 Strong cash flow, reduced leverage - SEB

Altough the organic sales growth was somewhat softer than our expectations (-5% vs. SEB at +2%), the adj. EBITA margin held up better than estimated at 8.2% vs. SEB at 5.8%, leading to adj. EBITA beating our expectations by 39%. Most notably, Seafire saw a significant release of net working capital in the quarter, leading to pro forma ND/EBITDA reducing to 2.1x, from 2.68x in Q2 2023.

Altough the organic sales growth was somewhat softer than our expectations (-5% vs. SEB at +2%), the adj. EBITA margin held up better than estimated at 8.2% vs. SEB at 5.8%, leading to adj. EBITA beating our expectations by 39%. Most notably, Seafire saw a significant release of net working capital in the quarter, leading to pro forma ND/EBITDA reducing to 2.1x, from 2.68x in Q2 2023.
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