<a id="bm-comp-24a72e43-6d0c-4114-9a23-6bd1ce92d128" name="bm-comp-24a72e43-6d0c-4114-9a23-6bd1ce92d128" class="BMCustomAnchor"></a><table><tr><td bm-component-id="24a72e43-6d0c-4114-9a23-6bd1ce92d128" style="vertical-align: top; width:100.000000%;"><ul><li>Better than feared, sales still down 20% y-o-y, but margin held up well</li><li>Near-term market and programme shut-down headwinds persist</li><li>But new installations very strong, we raise '25e-'26e EBIT by ~6%</li></ul></td></tr></table><a id="bm-comp-b1a31e56-5fe3-4490-b774-3f1678db9d89" name="bm-comp-b1a31e56-5fe3-4490-b774-3f1678db9d89" class="BMCustomAnchor"></a><table><tr><td bm-component-id="b1a31e56-5fe3-4490-b774-3f1678db9d89" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3"><font color="#000000">Q3 results</font></h3><p>The Q3 numbers beat our lowered expectations, with the beat mainly driven by higher sampling cup sales, which we thought would come down more ahead of lower Q4 production, but also somewhat higher equipment sales. With headwinds from the previously announced programme shut-down, 10-20% lower volume reductions at most EU and NA OEMs due to the softening commercial vehicle market, and a weaker USD, sales were down 20% y-o-y, but the adj. EBIT margin of 40.6% only came down 0.9pp y-o-y, due to reduced opex.</p><h3 class="bm-h3"><font color="#000000">Estimates and outlook</font></h3><p>While near-term headwinds from the programme shut-down and a softer commercial vehicle market remain, the growth outlook for '25e looks strong, as the Traton Group 13 litre engine continues to ramp, a new 13 litre cylinder block for First Automotive Works in China starts production, and the company is delivering on its guidance of a strong installation outlook. In Q3 alone, installation orders were SEK 9m, compared to the historical annual average of SEK 8m. We raise '25e-'26e EBIT by ~6% on the lower opex, and a strengthened USD.</p><h3 class="bm-h3"><font color="#000000">Valuation</font></h3><p><font color="#000000">With the share trading at 22-14x '24e-'26e P/E, we maintain our fair value range of SEK 115-145, based on historical P/E multiples and our DCF valuation, which we think are the most appropriate valuation methods for SinterCast.</font></p></td></tr></table>