* Q3 EBITDA NOK 14m vs ABGSCe NOK 9m * Awaiting stabilised markets * Only minor adjustments to estimates expected Q3: EBITDA of NOK 14m vs ABGSCe NOK 9m Sales increased 2% y-o-y, driven by strong development in the UK and Ireland (127% growth). Total revenues came in at NOK 320m, vs our NOK 358m. GP was -4% vs. our estimate, but StrongPoint had a solid GM of 45% (ABG 42.0%). EBITDA came in at NOK 14m vs. ABGSCe NOK 9m, on higher gross margin. The EBITDA margin landed at 4.3% (vs. ABGSCe 2.5%). This is up y-o-y (Q3'24 3.9%). EPS came in at NOK 0.38 vs. ABGSCe NOK 0.31. Cash flow from operations was stronger compared to Q2, at NOK 23m vs NOK 20m. Net debt came in at NOK 44.9m vs NOK 73.6m in Q2. No changes on outlook: StrongPoint states that they see continued improvement in both EBITDA and recurring revenue. The long term ambitions are healthy revenue growth and an EBITDA margin >10%. Awaiting stabilised markets The EBITDA margin is still pressed at ~2.7% (LTM), which compares to the company's long-term target of an EBITDA margin >10%. It remains a waiting game, but performance has improved in '25, with LTM EBITDA of NOK 36m. StrongPoint has now delivered five consecutive quarters of positive EBITDA, which is a step in the right direction from the negative results in Q4’23-Q2’24. Although a small positive, we see this as an encouraging development, and may indicate that the worst has past. With disposable funds of NOK 112m, we argue StrongPoint is in a decent position to await improved markets. Estimates largely unchanged The markets remain challenging, but estimates have already come down, and are thus likely to remain largely unchanged.
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