<a id="bm-comp-db8b311f-d5ad-4d83-ad08-24d03678cb29" name="bm-comp-db8b311f-d5ad-4d83-ad08-24d03678cb29" class="BMCustomAnchor"></a><table><tr><td bm-component-id="db8b311f-d5ad-4d83-ad08-24d03678cb29" style="vertical-align: top; width:100.000000%;"><ul><li>Q2e: Wood acquisition drives sales and earnings growth</li><li>We cut adj. EBITA by 4-1% for '24e-'25e</li><li>Fredrik Valentin announced as new CEO, starting Jan '25</li></ul></td></tr></table><a id="bm-comp-ac243d60-b501-453c-83e2-72bffb35a63f" name="bm-comp-ac243d60-b501-453c-83e2-72bffb35a63f" class="BMCustomAnchor"></a><table><tr><td bm-component-id="ac243d60-b501-453c-83e2-72bffb35a63f" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">Q2e: EBITA growth driven by Wood acquisition</h3><p>We expect Alcadon to deliver Q2 net sales of SEK 427m, up 15% y-o-y, of which +6% organic. The majority of the growth stems from the newly-acquired Wood Communications (consolidated 2 April). However, we also expect a pick-up in organic growth, driven by continued strong growth in data centres while fibre-to-the-home (FTTH) sales should stabilise at a low level. The Wood acquisition is also margin-accretive, and this results in our estimated Q2 adj. EBITA of SEK 33.3m, up 56% y-o-y, for a margin of 7.8% (5.8%).</p><h3 class="bm-h3">We lower adj. EBITA by 4-1% for '24e-'25e</h3><p>We continue to expect gradual sequential improvements in the FTTH market, albeit slower than we previously estimated, and as such we mainly lower our estimates for the FTTH-heavy German and Danish markets. At the group level, this makes for negative adj. EBITA revisions of 4% for '24e and 1% for '25e.</p><h3 class="bm-h3">Trading at 9-7x '24e-'25e EV/EBITA (adj.)</h3><p>The share is currently trading at 9x '24e EV/EBITA (adj.), but with more normalised demand in certain end-markets in '25e this drops to 7x. Meanwhile, we estimate a '24e-'26e adj. EBITA CAGR of 17%. Finally, Alcadon recently announced the appointment of Fredrik Valentin as its new President and CEO, and he will assume the position in January 2025. Most recently, Mr. Valentin was the Divisional Head of Workplace Safety at Bergman & Beving, where he gained experience in a decentralised, M&A-focused business model somewhat similar to Alcadon's, and therefore we conclude the appointement looks to be a good fit.</p></td></tr></table>