Ahead of Solwers' Q1 2025 report, we cut our EBIT estimates by 9-11% for 2025-27 as we expect a somewhat slower recovery in organic sales growth as well as only a gradual and prolonged profitability improvement from the weak 2024 (burdened by one-off costs). The company posted an EBIT margin of 3.5% in 2024, and we expect a rebound to 4.3% in 2025 and ~5% in 2026-27. Our DCF- and peer-based fair value range declines slightly to EUR 3.7-4.4 (3.8-4.5), including EUR 0.6 per share for the present value of unannounced acquisitions. We believe Solwers will continue its M&A-driven strategy; it is about to expand into the Polish market, and we foresee further margin improvement potential once the market recovers in Solwers' operating countries. However, we do not believe the market in Finland and Sweden will recover materially until late 2025 at the earliest. Marketing material commissioned by Solwers.
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