- Strong Q2; sales +148% y-o-y and positive EBIT - We make small EBIT revisions - Strong near-term outlook, 32x-16x '25e-'26e EV/EBIT
ANNONS
Strong Q2 results
With sales +148% y-o-y and EBIT of SEK 27m (vs. SEK -17m in Q2'24), Ovzon delivered a strong Q2. This improvement was driven by recent contracts; in particular the SEK 1bn order from the Swedish Defence Materiel Administration (FMV), which has been a real game changer for Ovzon. We estimate that only ~SEK 65m of the 24-month contract has so far been recognised, and it should also be noted that another SEK 72m follow-up contract was signed after the end of the quarter. This means that the SEK 1.2bn Q2 backlog provides a strong outlook and comparably good visibility of estimates. Importantly, Ovzon demonstrated significant operational leverage on improved sales, driven by a 20pp GM expansion (due to increased capacity on Ovzon-3) and rigorous opex control.