<a id="bm-comp-c7e66677-e939-4a57-baf0-2404d95f60fa" name="bm-comp-c7e66677-e939-4a57-baf0-2404d95f60fa" class="BMCustomAnchor"></a><table><tr><td bm-component-id="c7e66677-e939-4a57-baf0-2404d95f60fa" style="vertical-align: top; width:100.000000%;"><ul><li>Sales SEK 42m (vs. ABGSCe 49m), Perf. Chemicals main miss</li><li>EBIT SEK -6.6m vs. ABGSCe -2.6m, despite a gross margin of 49%</li><li>Recycling still strong at +66% y-o-y, pipeline up to 164 projects</li></ul></td></tr></table><a id="bm-comp-704ca058-0352-4972-96eb-6c83a98f884d" name="bm-comp-704ca058-0352-4972-96eb-6c83a98f884d" class="BMCustomAnchor"></a><table><tr><td bm-component-id="704ca058-0352-4972-96eb-6c83a98f884d" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">Q3 results</h3><p>Nexam reported sales of SEK 42m (-15% vs. ABGSCe 49m), -9% y-o-y. Q3 is seasonally the weakest quarter due to holiday shutdowns at customers, and management notes a cautious restart after the summer this year. Performance Masterbatch grew 2% and was in line with our estimate, while Performance Chemicals fell 20% y-o-y (-29% vs. ABGSCe). High Temperature was still hit by the inventory adjustment at its largest customer, and Lightweight was low after larger deliveries in Q2. Recycling grew 66% y-o-y to SEK 9.3m. The gross margin was 49% (ABGSCe 48%), but lower sales and higher costs took EBIT to SEK -6.6m (ABGSCe -2.6m).</p><h3 class="bm-h3">Estimates and outlook</h3><p>On numbers alone, '26e-'28e sales change by -3% and adj. EBIT by SEK -4m. Management expects the HT inventory adjustment to be completed by year-end. The Recycling pipeline grew to 164 projects in development/proof-of-concept (145 in Q2), with 14 (12) technically approved and 31 (28) customers in commercial business. First orders came in from the new distributors in France and Turkey.</p><h3 class="bm-h3">Valuation</h3><p>The share has returned -30% L3M (vs. peer median -17% and OMX Stockholm Allshare +3%), and is currently trading at 1.1x-0.9x '26e-'28e EV/Sales on our pre-report estimates vs. the peer median of 1.4x-0.7x. The company will host a <a data-bm-trackable="false" href="https://www.youtube.com/live/OW6JtIZ2Op0" target="_blank">presentation</a> of the Q3 results at 09:00 CEST.</p></td></tr></table><a id="bm-comp-4ca22d67-331a-4a35-ac30-6cd8b13ceb88" name="bm-comp-4ca22d67-331a-4a35-ac30-6cd8b13ceb88" class="BMCustomAnchor"></a><table><tr><td bm-component-id="4ca22d67-331a-4a35-ac30-6cd8b13ceb88" style="vertical-align: top; width:100.000000%;"><table id="bm-img-112ac753-5df5-49db-955d-3df66c9b8d08" 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="112ac753-5df5-49db-955d-3df66c9b8d08" bm-img-original-height="562" bm-img-original-width="646" bm-img-svg="image:image_upload/99503_d02574ff-af48-484b-a6f8-daa9e8fccfd6.svg" bm-img-width-hint="88.72%" id="bm-id-1934d8b4-79f2-4901-adb9-d024cfc21883" src="https://abgsc.bluematrix.com/images/image_upload/99503_d02574ff-af48-484b-a6f8-daa9e8fccfd6_645.png" svg="/nas/web/clients/abgsc/images/image_upload/99503_d02574ff-af48-484b-a6f8-daa9e8fccfd6.svg" width="645" alt="" title="" /></td></tr><tr><td class="xslt-img-source">Source: ABG Sundal Collier Estimates, Company Data</td></tr></table></td></tr></table>