Sweden's Gapwaves Q3 net sales fall on project revenue decline

Overview

• Sweden antenna technology firm's Q3 net sales fell 56% yr/yr as project revenue declined

• Company wrote down Sensrad investment and transferred 30% stake for SEK 1 after weak performance

• Product sales and antenna production volumes grew, driven by Valeo and new supply agreement in China

Outlook

• Gapwaves expects product sales growth and higher production volumes in coming quarters

• Company preparing for higher volumes from 2028 with new equipment for Valeo program

• Board is evaluating options to strengthen financial position and flexibility in near term

Result Drivers

• PROJECT REVENUE DECLINE - Co said net sales fell as sales of production equipment and project revenue were significantly lower than last year

• PRODUCT SALES GROWTH - Co said product sales are now its largest revenue stream, with steadily increasing production volumes laying foundation for continued growth

• VALEO DEMAND - Co said demand from Valeo continues to develop more strongly than expected, with larger orders and higher volumes

Company press release:

Key Details

Analyst Coverage

• Wall Street's median 12-month price target for Gapwaves AB is SEK20.00, about 43.5% above its October 21 closing price of SEK13.94

Reuters Recommended Reads

• Oct 21 - Sweden's Husqvarna slightly misses Q3 sales estimates amid weak demand

• Oct 21 - Sweden's SKF misses Q3 sales, operating profit estimates

• Oct 22 - Sweden's Mycronic Q3 sales beat estimates, lifts 2026 outlook

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.)