Nexam Chemical - Record sales and first positive EBIT

• Record quarterly sales: SEK 60m (+11% y-o-y), +9% vs. ABGSCe
• EBIT positive at SEK 0.14m (vs. ABGSCe -1.8m)
• Recycling now ~17% of sales (+76% growth y-o-y)

Q2 results

Nexam reported record high quarterly sales at SEK 60m (+9% vs. ABGSCe 55m), +11% y-o-y. Growth was driven by Recycling (SEK 10.2m, +76% y-o-y, first quarter above SEK 10m), with Performance Chemicals up 16% and Performance Masterbatch up 7%, while High Temperature remained soft on North American destocking. EBIT turned positive for the first time in the company's history at SEK 0.14m (vs. ABGSCe -1.8m), for a margin of +0% (ABGSCe -3%).

Estimates and outlook

On numbers alone, '26e-'28e sales change by +2%, and EBIT adj. changes by SEK +1.9m. Management sees "favourable conditions" for continued strong Recycling growth in H2, supported by a growing pipeline and new distributors in France and Turkey, but flags Q3 as the seasonally weaker holiday quarter.

Valuation

The share has returned +19% L3M (vs. peer median +5% and OMX Stockholm Allshare +3%), and is currently trading at 1.5x-1.2x '26e-'28e EV/Sales on our pre-report estimates vs. the peer median of 1.3x-0.7x. The company will host a presentation of the Q2 results at 09:30 CEST.