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Q2 resultsInission delivered a strong Q2, with adj. EBITA of SEK 41m +5% vs. our estimate with a 6.4% margin (4.5%) on sales of SEK 635m (3% below ABGSCe, but still +19% y-o-y). Order intake of SEK 719m was up 39% and 5% above our forecast for a book-to-bill of 1.13x. Inission Power (Enedo) drove the beat, with EBITA reaching SEK 3.8m (-4.7m) against our SEK 2.3m, representing a 3.1% margin in its third straight profitable quarter. Cash flow was held back by inventory built-up; this was partly seasonal, but also partly due to safeguarding against PCB and component shortages. Estimate changesWe raise '26e-'28e adj. EBITA by 1%/2%/2%, mainly on a stronger Inission Power margin, as the turnaround in that segment continues to exceed our expectations. Our H2 estimate implies SEK 215m of sales per month, the middle of the company's flagged SEK 210-220m range. Management left the FY'26 sales guidance of SEK 2,300-2,500m at a >6% EBITA margin unchanged. However, on the call, they said that this was mainly out of prudence and that they are confident of reaching SEK 2.5bn. They added that there is a good chance of exceeding this target. We forecast SEK 2,588m at 6.9%. Outlook and valuationThe near-term margin case rests on Inission Power, which management expects to improve further in H2 compared to H1. The M&A pipeline is at a record and the CEO reiterated the ambition to close a deal this year. We raise our fair value range to SEK 60-100 (55-95). The share is trading at 14x-10x '26e-'28e P/E vs. a 10-year median of 13x-9x and Nordic EMS peers at 15x-12x. |