<a id="bm-comp-141bf28f-e5cc-4325-b25a-c3ef108e6940" name="bm-comp-141bf28f-e5cc-4325-b25a-c3ef108e6940" class="BMCustomAnchor"></a><table><tr><td bm-component-id="141bf28f-e5cc-4325-b25a-c3ef108e6940" style="vertical-align: top; width:100.000000%;"><ul><li>Sales in line with cons, adj. EBITA -7% vs cons</li><li>Consensus EBITA estimate revisions slightly negative</li><li>Acquisitions back on the agenda again</li></ul></td></tr></table><a id="bm-comp-09e5145f-3ab8-48ac-ac8a-8ad3de3b12d8" name="bm-comp-09e5145f-3ab8-48ac-ac8a-8ad3de3b12d8" class="BMCustomAnchor"></a><table><tr><td bm-component-id="09e5145f-3ab8-48ac-ac8a-8ad3de3b12d8" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">Q4'24 outcome</h3><p>The Q4 report was mostly in line with expectations. Q4 sales came in at SEK 2,089m (0% vs ABGSCe 2,098m, 0% vs cons 2,099m), organic growth ~7% (vs 8% ABGSCe; vs 8% cons), gross margin at 31.5% (vs ABGSCe 31.0%, vs cons 31.1%) and adj. EBITA at 157m (0% vs ABGSCe 157m, -7% vs cons 168m). Humble's gross margin was slightly better than expected, but the capacity-increasing investments weigh on adj. EBITA, causing a slight miss vs consensus.</p><h3 class="bm-h3">Thoughts and outlook</h3><p>Organic growth is strong at 7% considering a tough comparable figure of 18%. While EBITA growth was hampered by a somewhat higher opex base, the gross margin is intact. This means that Humble can scale on EBITA once its opex investments are concluded. Interestingly, M&amp;A seems to be back on the agenda as the company is deleveraging. For Humble's platform companies (e.g., Solent), this should be positive as they will be allowed to grab additional market share and compound earnings at a higher rate. Our opinion on the business is unchanged but positive following the report.</p><h3 class="bm-h3">We expect minor, negative consensus estimate revisions</h3><p>The share is down ~8% YTD and is trading at ~9x '25e EV/EBITA on our unrevised estimates. Mechanically, EBITA consensus estimates should come down by low single-digits. Conference call at 10:00 CET (<a href="https://humble-group.events.inderes.com/q4-report-2024" target="_blank">link</a>).</p><table id="bm-img-1d746af6-1a09-4b57-9bc6-181f5e765de9" class="bm-img-table xslt-img-empty xslt-img-include"><tr><td class="xslt-img-caption">Deviation table</td></tr><tr><td><img bm-img-encrypt="1d746af6-1a09-4b57-9bc6-181f5e765de9" bm-img-original-height="313" bm-img-original-width="1142" bm-img-svg="image:image_upload/85655_3c3e3be0-d67a-4bb3-8034-e3f6a597bba9.svg" bm-img-width-hint="100%" id="bm-id-1d746af6-1a09-4b57-9bc6-181f5e765de9" src="https://abgsc.bluematrix.com/images/image_upload/85655_3c3e3be0-d67a-4bb3-8034-e3f6a597bba9_733.png" svg="/nas/web/clients/abgsc/images/image_upload/85655_3c3e3be0-d67a-4bb3-8034-e3f6a597bba9.svg" width="727" alt="" title="" /></td></tr><tr><td class="xslt-img-source">Source: ABG Sundal Collier, Company data, FactSet.</td></tr></table></td></tr></table>