Sweden's Ependion Q3 sales rise 22% on energy segment strength

By Reuters News


Overview

  • Sweden technology group's Q3 net sales rose 22% yr/yr, with broad-based growth

  • Q3 EBITA margin strengthened to 14.3% from 12.2%

  • Company attributes results to higher volumes, gross margins, and cost restraint


Outlook

  • Ependion says geopolitical uncertainty expected to persist, with potential short-term effects on business

  • Company remains focused on profitable growth through investments in technology and new markets

  • Ependion confident about remainder of 2026 and ability to deliver profitable growth for full year


Result Drivers

  • ENERGY SEGMENT - Co said Westermo's order intake was driven by strong development in the energy segment across several markets and product areas

  • MARINE AND MANUFACTURING DEMAND - Co said Beijer Electronics' order intake rose due to increased demand in the marine segment and manufacturing industry

  • COMPONENT MARKET STRAINS - Co said inventory levels were adversely affected by strained component market and uncertainty about future developments


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

SEK 664 mln

Q3 EPS

SEK 1.77

Q3 Net Income

SEK 56.90 mln

Q3 Orders

SEK 565 mln


Analyst Coverage

  • The one available analyst rating on the shares is "hold"

  • The average consensus recommendation for the integrated hardware & software peer group is "buy."

  • Wall Street's median 12-month price target for Ependion AB is SEK170.00, about 9.8% above its October 22 closing price of SEK154.80

  • The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 22 three months ago


Reuters Recommended Reads

  • Oct 23 - Sweden's Beijer Alma Q3 revenue up 11%, order bookings rise 22%

  • Oct 23 - Sweden's Indutrade Q3 EBITA slightly beats estimates on strong order intake, pricing

  • Oct 23 - Sweden's Momentum Group Q3 revenue up 8% on Industry business 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.)

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