Nexam Chemical: Weaker Q1, likely better from here - ABG

Q1 sales lower than expected due to weak end-markets in lightweight
Expect positive EBIT margins in H2'25e
Trading at 1.4x-0.9x EV/Sales


Sales lower than expected, but gross margin higher

Q1 sales were SEK 49m, -7% y-o-y and 7% below our expectations. The lightweight segment (within Performance Chemicals) remains weak and sales came in at SEK 8.7m (vs. 19.7m in Q1'24, -56% y-o-y), while Masterbatch continues to hold its own, growing for the fourth consecutive quarter (+5 y-o-y). EBIT was lower at SEK -2.8m (vs. ABGSCe -0.1m), as a consequence of lower volumes. However, thanks to continued cost control, the gross margin increased for the ninth consecutive quarter to 48% (45%) and we expect the company to maintain these levels going forward.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/nexam-chemical/Equity-research/2025/4/nexam-chemical---weaker-q1-likely-better-from-here/