<a id="bm-comp-8048305f-7f54-4405-bd10-4a5acec28875" name="bm-comp-8048305f-7f54-4405-bd10-4a5acec28875" class="BMCustomAnchor"></a><table><tr><td bm-component-id="8048305f-7f54-4405-bd10-4a5acec28875" style="vertical-align: top; width:100.000000%;"><ul><li>Q3 softer due to sizeable customer trimming '25 volumes</li><li>'25e-'27e sales cut by 11-6% and '26e-'27e EBIT by 12-8%</li><li>We believe I-Tech remains strongly positioned to grow market share</li></ul></td></tr></table><a id="bm-comp-0b16c873-f0ca-44cc-ac74-e31d65a4afee" name="bm-comp-0b16c873-f0ca-44cc-ac74-e31d65a4afee" class="BMCustomAnchor"></a><table><tr><td bm-component-id="0b16c873-f0ca-44cc-ac74-e31d65a4afee" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">Growth dampened by customer volume cuts</h3><p style="text-align:left;">I-Tech reported weaker than expected Q3 sales of SEK 41m (-18% vs. ABGSCe, +0.5% y-o-y, +10% org.) and EBIT of SEK 11m (vs. ABGSCe at 16m, +18% y-o-y) for a margin of 27% (23%). The weaker growth was mainly due to a key customer reducing its planned volumes for '25 due to financial constraints. On a positive note, the gross margin continued to improve, to 57% (52%), although it decreased slightly sequentially due to changes in the customer and producer mix. Looking ahead, management anticipates further improvements through margin-enhancing initiatives.</p><h3 class="bm-h3" style="text-align:left;">Estimate changes and outlook</h3><p>We cut '25e-'27e sales by 11-6% and '26e-'27e EBIT by 12-8%. While we expect continued growth among I-Tech’s other customers, including CMP, PPG, Jotun, and Kansai Paints, to partially offset the reduced volumes from the sizeable customer, we still anticipate a net negative impact on '25e- organic growth. Consequently, we lower our '25e organic growth to 5% (previously 18%). For '26e we expect we expect a partial recovery in the customer's volumes and for continued growth among smaller customers to support +25% organic growth.</p><h3 class="bm-h3" style="text-align:left;">Trading at '25e-'27e EV/EBIT of 20x-8x</h3><p>Although we have lowered our estimates, we still anticipate that I-Tech will continue to increase its market share driven by growth among other customers and additional product launches. I-Tech expects to announce new strategic collaborations in the coming quarters. The company is actively developing opportunities both directly linked to Selektope, aimed at expanding its use through new formulations and customer products, and in adjacent technologies such as complementary additives and binder systems. The company is trading at 20x-8x EV/EBIT on '25e-'27e, and 25x-13x P/E, i.e. ~50-30% below the peer median.</p></td></tr></table>