<a id="bm-comp-6e9a8d46-ccef-4bf2-b1cc-fa1defba94ee" name="bm-comp-6e9a8d46-ccef-4bf2-b1cc-fa1defba94ee" class="BMCustomAnchor"></a><table><tr><td bm-component-id="6e9a8d46-ccef-4bf2-b1cc-fa1defba94ee" style="vertical-align: top; width:100.000000%;"><ul><li>Q1 sales +40% y-o-y, +2% q-o-q, FCF negative</li><li>Cut '25e-'27e sales by 7% on weaker Q2 outlook</li><li>Market recovery and new products to support H2'25e</li></ul></td></tr></table><a id="bm-comp-a19a6f0a-5d15-4454-b5b9-dacbf5fa8936" name="bm-comp-a19a6f0a-5d15-4454-b5b9-dacbf5fa8936" class="BMCustomAnchor"></a><table><tr><td bm-component-id="a19a6f0a-5d15-4454-b5b9-dacbf5fa8936" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">New products and distributors to support H2'25e</h3><p>Energy Save reported Q1 sales of SEK 54m (+40% y-o-y, +2% q-o-q). EBIT was higher than expected at SEK -4m (vs. ABGSCe -7m) due to the company's newly implemented cost-cutting programme. We expect Q2 to be a weaker quarter (-31% q-o-q), due to inventory buildup among OEM customers, but we anticipate an upturn in H2'25e (est. ~40% y-o-y growth in H2'25e), driven by normalising inventory levels and a gradual market recovery. We expect higher volumes in H2'25e to drive EBIT growth, with positive margins and FCF anticipated in '26e. The company’s ~SEK 30m cash balance should provide sufficient support until then. Growth continues to be underpinned by the Aira partnership (we estimate revenues of ~SEK 200m for '25e). However, we expect both ES-branded sales and Commercial to gradually improve towards H2'25e with the help of the company's new product launches.</p><h3 class="bm-h3">Lower '25e-'27e sales amid soft Q2 outlook</h3><p>Due to the company's weak Q2 outlook, we lower '25e-'27e sales by 7%, but only lower '25e-'27e EBIT by 6-4% due to the company's increased focus on cost control.</p><h3 class="bm-h3">Waiting for the market recovery</h3><p>Although the company has recently invested in growth and has established more partnerships with new distributors, we believe that the main long-term driver for both volumes and profitability remains improving market conditions. We expect these conditions to gradually improve in H2'25e, supporting higher volumes for ES outside the Aira partnership and enabling the company to achieve positive EBIT by '26e. The company is currently trading at 0.4x-0.2x EV/Sales '25e-'27e and 5x-2x EV/EBIT '26e-'27e, ~50-90% below cleantech and HVAC peers. We maintain our fair value range of SEK 25-76.</p></td></tr></table>