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Tempest Security: Weak margins but head over water - SEB

Tempest reported sales of SEK 117.1m (-0.7% vs SEB 118.0m) corresponding to a 7% growth y/y mostly driven by its core business segment Security Solutions which grew by 12% y/y. Earnings on the other hand was a bit below expectations, Adj. EBITDA was SEK 5m (-13% vs SEB 5.8m) as Tempest continues to struggle with profitability. While this year has started slow, the overall direction of the company is looking good, compared to 2020-21. We lower our mid-point to SEK 34 (36).

Tempest reported sales of SEK 117.1m (-0.7% vs SEB 118.0m) corresponding to a 7% growth y/y mostly driven by its core business segment Security Solutions which grew by 12% y/y. Earnings on the other hand was a bit below expectations, Adj. EBITDA was SEK 5m (-13% vs SEB 5.8m) as Tempest continues to struggle with profitability. While this year has started slow, the overall direction of the company is looking good, compared to 2020-21. We lower our mid-point to SEK 34 (36).
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