Flash Comment: Underlying profit ahead of our estimate (Nordea)
Sdiptech’s Q2 2021 report was overall ahead of our estimates, driven by both focus segments Water & Energy (W&E) and Special Infrastructure Solutions (SIS). Net sales grew by 38% y/y during the quarter to SEK 665m, outperforming our estimate by SEK 86m (+15%). Organic sales growth y/y was +15.7% (we expected +7%). EBITA* (EBITA adjusted for earn-outs, divestment loss and M&A costs) reached SEK 121m, up 46% y/y and 4% q/q, which was 7% above us, despite the EBITA* margin being 1.7 pp below our expectations (up 0.8 pp y/y). Organic EBITA* growth was -8% y/y. The divestments within Property Technical Services (PTS) during Q2 resulted in a capital loss of SEK 20m (mainly goodwill), which Sdiptech adjusts for in EBITA*. The beat in Q2 alone represents upgrades to our full year 2021E EBITA* of 1.5%. Estimates changes: we expect to upgrade our sales estimates by 4-6% but less for EBITA* owing to the weaker margin.