I-tech: Significant beat across the PL - ABG
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* Sales +27% vs. ABGSCe, EBIT SEK 19m vs. ABGSCe 9.8m
* A beat on all line items, despite very tough comps
* Gross margin 60% (56% LY), though may soften on raw material prices
Much stronger growth than expected
Sales came in above expectations at SEK 53m (+27% vs. ABGSCe 42m), -7% y-o-y (+7% org.). EBIT was SEK 19m (+89% vs. ABGSCe 9.8m), for a margin of +35% (ABGSCe +24%). EBIT adj. was SEK 19m (+89% vs. ABGSCe 9.8m), for a margin of +35% (ABGSCe +24%). Moreover, the gross margin continued to improve in the quarter to 60% (56% LY), however management flags that it may soften going forward due to cost increases in raw materials. I-Tech writes that all major customers continued to develop positively with offtake in line with or exceeding Q1'25. FCF lease adj. came in at SEK 8.5m (vs. ABGSCe 0.38m).
Estimates and outlook
On numbers alone, '26e-'28e sales change by +6%, and EBIT adj. changes by +18%. The company notes the global newbuilding orderbook hit a 17y high at the end of Q1, though pace of newbuild ordering slowed slightly in March on the Middle East conflict. Moreover, during the quarter, I-Tech announced it has received an extension of its regulatory approval in the EU until Dec '26, due to the ongoing process not being finalised within timeframe.
Valuation
The share has returned +44% L3M (vs. peer median +11% and OMXSSMAC +15%), and is currently trading at 16x-9.1x '26e-'28e P/E on our pre-report estimates vs. the peer median of 28x-16x.
* A beat on all line items, despite very tough comps
* Gross margin 60% (56% LY), though may soften on raw material prices
Much stronger growth than expected
Sales came in above expectations at SEK 53m (+27% vs. ABGSCe 42m), -7% y-o-y (+7% org.). EBIT was SEK 19m (+89% vs. ABGSCe 9.8m), for a margin of +35% (ABGSCe +24%). EBIT adj. was SEK 19m (+89% vs. ABGSCe 9.8m), for a margin of +35% (ABGSCe +24%). Moreover, the gross margin continued to improve in the quarter to 60% (56% LY), however management flags that it may soften going forward due to cost increases in raw materials. I-Tech writes that all major customers continued to develop positively with offtake in line with or exceeding Q1'25. FCF lease adj. came in at SEK 8.5m (vs. ABGSCe 0.38m).
Estimates and outlook
On numbers alone, '26e-'28e sales change by +6%, and EBIT adj. changes by +18%. The company notes the global newbuilding orderbook hit a 17y high at the end of Q1, though pace of newbuild ordering slowed slightly in March on the Middle East conflict. Moreover, during the quarter, I-Tech announced it has received an extension of its regulatory approval in the EU until Dec '26, due to the ongoing process not being finalised within timeframe.
Valuation
The share has returned +44% L3M (vs. peer median +11% and OMXSSMAC +15%), and is currently trading at 16x-9.1x '26e-'28e P/E on our pre-report estimates vs. the peer median of 28x-16x.