<a id="bm-comp-b2680866-339f-457b-b275-733284aa2e83" name="bm-comp-b2680866-339f-457b-b275-733284aa2e83" class="BMCustomAnchor"></a><table><tr><td bm-component-id="b2680866-339f-457b-b275-733284aa2e83" style="vertical-align: top; width:100.000000%;"><ul><li>2% sales beat &amp; adj. EBIT SEK 45m vs. ABGSCe 29m</li><li>Announces restructuring programme of SEK 20m p.a.</li><li>Consensus estimate revisions likely in positive low teens</li></ul></td></tr></table><a id="bm-comp-dc15c65f-77b1-4f12-8682-1a35ce2222bd" name="bm-comp-dc15c65f-77b1-4f12-8682-1a35ce2222bd" class="BMCustomAnchor"></a><table><tr><td bm-component-id="dc15c65f-77b1-4f12-8682-1a35ce2222bd" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">Q3'25 report</h3><p>The Q3 report was above expectations on sales and adj. EBIT. Sales amounted to SEK 895m (2% vs ABGSC 879m), for an organic growth of -0.4% (1.6pp vs ABGSC -2.0%). Adj. EBIT came in at SEK 45m (53% vs ABGSC 29m), for a margin of 5.0% (1.7pp vs ABGSC 3.4%). Sales were driven by strong organic growth in North Europe (10%), while the Nordics and South Europe declined by -3.6% and -4.9%. The fire in Spain negatively affected South Europe sales, and included expenses in COGS of SEK 50m, affecting the GP. The adj. gross margin of 28.7% was ~0.4pp below our estimate. Adj. EBIT was better than expected, as it included SEK 44m in fire-related NRIs. Apart from this, the operating margin was strengthened partly due to a better sales mix. The CEO comments on a slightly more positive trend in the organic market. Cash flow from operations was SEK 48m (vs. ABGSCe 6m) due to a strong EBITDA and a higher than expected release in NWC (SEK -19m vs. ABGSCe -45m).</p><h3 class="bm-h3">Restructuring programme to save SEK 20m p.a.</h3><p>Last night Midsona <a data-bm-trackable="false" href="https://www.midsona.com/press-releases-single?slug=midsona-ab-publ-announces-a-restructuring-program-to-accelerate-margin-improvement" target="_blank">announced a restructuring programme</a> to accelerate its margin improvement. The programme is expected to save SEK ~20m p.a. with full run-rate impact starting Q1'26. Moreover, the implementations costs are expected to be SEK ~15m. SEK 20m would mechanically add 13-12% to our unrevised '26e-'27e adj. EBIT, adding ~0.5pp to the margin. However, we note that our estimates already included significant efficiency improvements from '26e and that a full addition of SEK 20m p.a. would place the '27e adj. EBIT margin at 5%, 3pp below the targeted 8%. The programme excludes ongoing cost adaptations regarding the recent <a data-bm-trackable="false" href="https://abg-portal.bluematrix.com/links2/doc/pdf/699b2d04-f248-4b87-a420-cb6aed8c4af3?id=YWxpY2UuYmVlckBhYmdzYy5zZTo3Og==" target="_blank">fire in its Spanish factory</a>. On the market in general, the CEO commented on continued global uncertainty and delayed recovery, however, positive signs were seen that strengthens Midsona's conviction in future sales growth.</p><h3 class="bm-h3">Likely positive consensus EBIT estimate revisions</h3><p>The share, which is has traded relatively flat YTD, is trading at ~9x-7x '25e-'26e EV/EBITA on our unrevised estimates. Our initial understanding of the report as well as a mechanical calculation suggest that consensus' EBIT estimates for '25e-'26e could be positive within the low teens. The company will host a presentation of the Q3 report at CET 11.00 (<a data-bm-trackable="false" href="https://midsona.events.inderes.com/q3-report-2025/register" target="_blank">link</a>).</p><table id="bm-img-a398938e-69a3-4cf8-b08a-b1feb1ede7aa" 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="a398938e-69a3-4cf8-b08a-b1feb1ede7aa" bm-img-original-height="424" bm-img-original-width="800" bm-img-svg="image:image_upload/91101_71d69980-4adf-43a2-bd1a-a2876ad0e2f1.svg" bm-img-width-hint="100%" id="bm-id-fe75288c-b292-45f6-a918-dfb61dec441c" src="https://abgsc.bluematrix.com/images/image_upload/91101_71d69980-4adf-43a2-bd1a-a2876ad0e2f1_727.png" svg="/nas/web/clients/abgsc/images/image_upload/91101_71d69980-4adf-43a2-bd1a-a2876ad0e2f1.svg" width="727" alt="" title="" /></td></tr><tr><td class="xslt-img-source">Source: ABG Sundal Collier, Company data.</td></tr></table></td></tr></table>