BMK margin recovery continues - Q3 initial comment

HANZA reported a good Q3, with better underlying margin development than we expected. Sales of SEK2,487m were 2% above our estimate, while organic growth of 7% was in line. Reported EBITA of SEK223m was 16% above our estimate, but included a SEK30m positive revaluation of the acquisition purchase price for Milectria. Excluding this item, EBITA was broadly in line with our SEK192m forecast. This is despite other IAC totalling SEK-24m, versus our SEK-10m assumption, indicating a stronger underlying result. Adj. EBITA was SEK217m, 7% above our estimate, with an 8.7% margin, 40bps above our forecast. The highlight of the report was BMK, where the adj. margin increased to 9.2% from 7.5% in Q2, with integration completed three months ahead of plan. We expect positive consensus revisions and for the shares to outperform the market today.

Q3 adj. EBITA grew 126% Y/Y. Sales of SEK2,487m were 2% above our estimate, with organic growth of 7% in line. Adj. EBITA was SEK217m with an 8.7% margin, 40bps above our forecast. BMK’s margin improved to 9.2% from 7.5% in Q2, and 7.3% in Q1. Reported EBITA of SEK223m included net positive IAC of SEK6m, including a positive SEK30m purchase-price revaluation of SEK30m for Milectria. Change in inventories was SEK162m, reflecting production for new projects ahead of delivery and invoicing, which weighed on working capital.

We expect positive consensus revisions. We believe the stronger-than-expected BMK profitability supports consensus revisions. The Fortaco acquisition is expected to close on 2 November, while management repeated that its SEK14bn 2028 sales target is achievable without further acquisitions. We expect the shares to outperform the market today, having had a soft performance ahead of the report.

Conference call at 10:00 CET: https://events.inderes.com/hanza/q3-report-2026.