No real progress in Q1 Market to turn positive in '25e, according to report Turnaround delayed, '25e EBITA down 26%
ANNONS
Q1: Sales -11% y-o-y, adj. EBITA margin of 4.2% (8.3%)
Projektengagemang's (PE) Q1 numbers saw similar development as in the Q4 report, with a sales decline of 11% y-o-y and underlying profitability (adj. EBITA margin) lower than last year. There was some slight progress q-o-q, however, as sales contracted more slowly and profitability improved, although it was still down around 4pp y-o-y. Sales were SEK 195m (218m) and adj. EBITA was SEK 8.1m (18.2m); we expected SEK 200m and 13.4m, respectively. The deviation was primarily driven by a lower number of FTEs and higher-than-expected personnel expenses per FTE. We are within a long downturn for the Swedish contracting market that started in '23, but according to Veidekke's latest market update, there are positive signs going into '25e. The company sees the Swedish contracting market increasing by 2% in '25e and a further 10% in '26e, which is a slightly slower recovery than previously anticipated.
