Sweden's Bravida Q3 net sales rise 9%, order backlog hits record

Overview

• Sweden technical solutions provider's Q3 net sales grew 9% yr/yr, organic growth also 9%

• Order backlog reached record SEK 24,216 mln, up 48% yr/yr

• Company completed Åslunds El acquisition during the quarter

Outlook

• Bravida expects to convert its record order backlog into continued growth and improve profitability

• Company says demand remains strong for data centres, infrastructure and defence projects, but new construction in Norway and southern Sweden is weak

• Bravida sees attractive long-term opportunities from digitalisation, electrification and increased infrastructure investment

Result Drivers

• ORDER INTAKE AND BACKLOG - Co said increased activity led to a 72% rise in order intake and record-high order backlog, positioning it for continued growth

• OPERATIONAL EFFICIENCY - Co said improved profitability in all markets was driven by higher volumes, transformation in Denmark, and focus on project implementation and operational efficiency

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction & engineering peer group is "buy"

• Wall Street's median 12-month price target for Bravida Holding AB is SEK150.00, about 5.5% above its October 22 closing price of SEK142.20

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads

• Oct 22 - Sweden's AFRY beats Q3 sales estimates on strong order backlog

• Oct 22 - Sweden's Sandvik Q3 revenue beats estimates on order growth

• Oct 21 - Bureau Veritas Q3 revenue up 10.1% on Buildings & Infrastructure unit strength

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)