Solwers Q1 Results and Covenant Waiver Review

Solwers reported weak Q1 results with adjusted EBITA 51% below estimates, raising concerns about meeting debt covenants by June 30. Nordea has cut its EBIT forecasts for 2026-28 but maintains a fair value range of EUR 2.6-3.0.

Key Takeaways

• 1.Profitability in Q1 was significantly below estimates, with adjusted EBITA 51% lower than forecasted.
• 2.Management identified a risk regarding the original covenant threshold meeting for the June 30 testing date.
• 3.Nordea has cut EBIT estimates for 2026-2028 by 5-15% following the weak quarterly performance.

Table of Contents

• Weak Q1 and covenant waiver concerns
• 3% sales growth y/y, but organic growth negative
• We cut EBITA by 13% for 2026E and by 5% for 2027E-28E
• Fair value range virtually unchanged at EUR 2.6-3.0 (2.5-3.0)
• Valuation and estimate revisions
• M&A scenario
• Detailed estimates
• Reported numbers and forecasts
• Fair value and sensitivity
• Marketing material
• Analyst Shareholding

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