Sweden's Troax Group Q3 EBITA beats on data centre demand

Overview

• Sweden industrial safety firm's Q3 sales rose 51% yr/yr

• Q3 EBITA beat analyst expectations

• One-off costs from North American production move impacted operating profit

Outlook

• Company sees continued strong demand in warehousing and data centre segments, especially in Europe and North America

• Company expects demand from automotive and construction segments to remain weak

• Troax Group notes uneven demand trends across regions and business segments

Result Drivers

• WAREHOUSING AND DATA CENTRES - Co said growth was driven by warehousing segment in Europe and data centre demand in North America and Europe

• AUTOMOTIVE AND CONSTRUCTION WEAKNESS - Co said demand from automotive industry in Europe and Asia, and construction segment, remained weak

• PRODUCTION RELOCATION COSTS - Co said one-off costs from North American production relocation affected operating profit

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", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for Troax Group AB (publ) is SEK163.00, about 12.3% above its October 28 closing price of SEK145.20

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads

• Oct 27 - Sweden's Alfa Laval Q3 sales rise on order intake

• Oct 28 - Sweden's Epiroc Q3 revenue up 10% on mining demand

• Oct 28 - Specialized equipment maker Terex Q3 sales beat on higher shipment volumes

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.)