Prevas - Waiting for volumes to follow

• Signs of stabilisation but pricing remains pressured
• We leave our estimates broadly unchanged
• Trading ~25% below Nordic peers

A stabilising market, but pricing remains the challenge

The technical consulting market has been weaker for longer than most expected. We believe conditions are gradually stabilising, although a meaningful recovery in volumes will likely take time. As reflected in recent market KPIs, Sweden is showing tentative signs of improvement, while Denmark remains challenging following large layoffs at major corporates. We therefore expect Denmark to remain a headwind despite Prevas' continued capacity adjustments. We estimate Q2 sales of SEK 407m, corresponding to flat y-o-y growth, driven primarily by acquisitions, while organic growth is likely to remain slightly negative. We estimate adj. EBITA of SEK 28m, corresponding to a 6.9% margin (6.5% in Q2'25), as continued cost discipline should partly offset persistent pricing pressure and higher salary costs following the annual wage revisions.

Limited changes to estimates

We make only limited changes to our estimates. Defence demand remains strong, supported by long project durations and high barriers to entry, while the company's EAM offering continues to gain traction through long-term customer relationships.

Trading 25% below its peers

Prevas is trading at 8x EV/EBITA on our '26 estimates, around 25% below the Nordic engineering consultancy peer group, despite offering higher margins and stronger long-term growth prospects, in our view. Near-term visibility remains limited, and pricing pressure is likely to persist until demand improves more meaningfully. However, we continue to believe that Prevas' niche positioning, high degree of specialisation and exposure to structurally growing end-markets should allow the company to outperform peers once the consulting cycle turns.