<a id="bm-comp-6b2cb3f2-9349-4601-a9a9-d94c830c3325" name="bm-comp-6b2cb3f2-9349-4601-a9a9-d94c830c3325" class="BMCustomAnchor"></a><table><tr><td bm-component-id="6b2cb3f2-9349-4601-a9a9-d94c830c3325" style="vertical-align: top; width:100.000000%;"><ul><li>3.5m EEs, sales -13% (-8% FX), EBIT margin 36.2% (+5.3% FX)</li><li>We cut '25-27e EBIT 6%/7%/1% on automotive market headwinds</li><li>Market recovery, FAW &amp; MAN ramp, Tupy order support '26e-'27e</li></ul></td></tr></table><a id="bm-comp-9c4143e1-6825-4620-9f71-1f47c4137e8c" name="bm-comp-9c4143e1-6825-4620-9f71-1f47c4137e8c" class="BMCustomAnchor"></a><table><tr><td bm-component-id="9c4143e1-6825-4620-9f71-1f47c4137e8c" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3"><font color="#000000">Q2 expectations</font></h3><p>We forecast EEs to come in at 3.5m in Q2, as we anticipate a seasonal up-tick in line with historical patterns from Q1's 3.1m. However, this still represents a 13% y-o-y decline, driven by the weakened automotive market and the program shutdown in H2'24. With SCs at 53k (57k) and equipment revenue of 2.4m (1.3m), we expect this will result in sales of SEK 30.7m, down 13% y-o-y, -8% of which is FX-related (due to weaker USD/SEK). On the adj. EBIT margin, we have 36.2% (37.2%), with a positive FX effect of 5.3% (0.6%).</p><h3 class="bm-h3"><font color="#000000">Estimate changes</font></h3><p>With headwinds persisting in the broader automotive market, we delay the demand recovery in our estimates, cutting '25e, '26e and'27e sales by 3%, 4% and 1%, respectively. Due to SinterCast's operating leverage, this in turn impacts adj. EBIT negatively by 6%, 7%, and 1%, respectively.</p><h3 class="bm-h3"><font color="#000000">Company valuation</font></h3><p>While SinterCast's market is seeing some near-term weakness, our long-term view of the company remains unchanged. The strong equipment revenue in '24 and even stronger pipeline in '25e, as well as the MAN and FAW production ramps (up to 1m EEs), should support growth estimates in '26e-'27e, in conjunction with an underlying market recovery. During the quarter, SInterCast's largest customer Tupy also announced a high-volume order for commercial vehicles in North America, which together with the previously announced Brazilian order should add 0.3m EEs per year at mature volume, with production starting in late '26e. On our updated estimates, the share is currently trading at a P/E of 24x, in line with its historical median of 23x.</p></td></tr></table>