Analyst Group

Analyst Group Comment on Borgestad’s Q3-26 Report

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Positiv

Sammanfattning

Borgestad rapporterade ett starkt Q3-2026 med ökad omsättning och EBIT-marginal inom Höganäs Borgestad-segmentet. Efter kvartalets slut slutfördes en sale-leaseback-transaktion i Bjuv, vilket möjliggjorde en extrautdelning till aktieägarna.

Analys

Bolaget visade förbättrad operationell prestation med en EBIT-marginal på 15,9% i Höganäs Borgestad, vilket beskrivs som det starkaste underliggande kvartalet någonsin. Trots en minskad orderbok i refraktärsegmentet, indikerar ledningen bred marknadsförbättring. Sale-leaseback-transaktionen frigör kapital och möjliggör en mer ändamålsenlig produktionssetup, vilket analytikern ser som en positiv marginaldrivare. Den extrautdelningen på 1,50 NOK per aktie reflekterar en aktieägarorienterad kapitalallokering.

VD-ord

Något tydligt VD-ord kunde inte identifieras i rapportunderlaget.

Nyckeltal

Revenue Q3-26
NOK 374.1m (353.5)
EBITDA Q3-26
NOK 72.1m (64.7)
Refractory EBIT margin Q3-26
15.9% (14.9%)
Refractory order book Sep 30, 2026
NOK 106m (145)
Extraordinary dividend
NOK 1.50 per share

Insikter

  • • Ledningen betonar att 10% EBIT-mål är inom bolagets kontroll, delvis genom att avveckla en förlustbringande svensk dotterbolag.
  • • Sale-leaseback-transaktionen ger en initial hyresfri period och minskad yta, vilket möjliggör en långsiktig produktionssetup.
  • • Den extrautdelningen och förväntan om fortsatt utdelning av överskottslikviditet indikerar en aktieägarvänlig kapitalallokering.
Fundamental påverkan · Positiv · 6/10
Materiell påverkan

Den operationella förbättringen och kapitalfrigöringen från sale-leaseback-transaktionen förväntas positivt påverka marginaler och aktieägarvärde.

NegativNeutralPositiv
−100+10

Borgestad ASA (“Borgestad”, “the Group” or “the Company”) published on October 30, 2026, the Company’s quarterly presentation for the third quarter of 2026. Höganäs Borgestad returned to revenue growth in the quarter, and on a lower cost base this lifted the segment’s EBIT margin to 15.9%, in what the Company describes as the strongest underlying quarter in Höganäs Borgestad’s history. After the end of the quarter, the Bjuv sale-leaseback was completed, which enabled an extraordinary dividend of NOK 1.50 per share.

Borgestad ASA (“Borgestad”, “the Group” or “the Company”) published on October 30, 2026, the Company’s quarterly presentation for the third quarter of 2026. Höganäs Borgestad returned to revenue growth in the quarter, and on a lower cost base this lifted the segment’s EBIT margin to 15.9%, in what the Company describes as the strongest underlying quarter in Höganäs Borgestad’s history. After the end of the quarter, the Bjuv sale-leaseback was completed, which enabled an extraordinary dividend of NOK 1.50 per share.

The following are some key financial metrics that we have chosen to highlight in connection with the report:

  • Revenue of NOK 374.1m (353.5) in Q3-26, corresponding to a YoY increase of 5.8%, approximately 5% above our estimate of NOK 355m
  • EBITDA of NOK 72.1m (64.7), corresponding to an EBITDA margin of 19.3% (18.3%) and a YoY increase of 11.5%, in line with our estimate of NOK 73m
  • Refractory EBIT of NOK 56.3m (49.6), corresponding to an EBIT margin of 15.9% (14.9%), lifting the adjusted LTM EBIT margin to 7.5% (6.2%)
  • Refractory order book of NOK 106m (145) as of September 30, 2026
  • Rental income at Agora Bytom of NOK 20.0m (20.1), corresponding to an increase of 8.4% YoY measured in EUR, while EBITDA increased to NOK 10.8m (10.3) at a margin of 54% (51%)
  • Completion of the Bjuv sale-leaseback on October 14, after the end of the quarter, with an estimated accounting gain of SEK 112.6m to be recognized in Q4-26
  • Extraordinary dividend of NOK 1.50 per share, corresponding to a yield of approximately 8.7% based on the latest closing price of NOK 17.2

SummaryBorgestad delivered a strong Q3-26 report, and after the end of the quarter it completed the Bjuv sale-leaseback, which has already translated into an extraordinary dividend to shareholders. Operationally, Höganäs Borgestad returned to revenue growth on a lower cost base. Revenue of NOK 374.1m came in approximately 5% above our estimate of NOK 355m. Group EBITDA of NOK 72.1m, up 11.5% YoY, was in line with our estimate of NOK 73m, as lower personnel and other expenses offset a higher share of materials and subcontracting. In the refractory segment, revenue growth of 6.3% converted into EBITDA growth of 13.4%, and the EBIT margin of 15.9% lifted the adjusted LTM EBIT margin to 7.5% (6.2%). The Company states that Höganäs Borgestad is on track for its mid-term target of at least 10%, and management emphasized during the presentation that the target is based on current market conditions and is largely within the Company’s own control. One concrete lever is the discontinuation of a loss-making Swedish subsidiary, which has burdened LTM EBIT by approximately SEK 12m; excluding it, the adjusted LTM EBIT margin amounts to approximately 9.1%. Refractory EBITDA of NOK 96.3m after nine months is already essentially at our full-year estimate of NOK 97.6m.

The softer datapoint in the report is the refractory order book of NOK 106m (145). The order book is followed by many investors and can be read as an indication of lower visibility into the seasonally weaker winter quarters, but in our view it does not necessarily reflect the underlying trend. Management describes the market improvement as broad-based across all three countries and most customer segments, and pointed out during the presentation that the order book only captures signed orders, while a large part of the business is expected but not yet contracted. In the Real Estate segment, Agora Bytom grew rental income by 8.4% YoY in EUR, although a weaker EUR masked the growth in NOK, and EBITDA increased to NOK 10.8m at a margin of 54% (51%).

After the end of the quarter, on October 14, the Bjuv sale-leaseback was completed. The transaction releases approximately SEK 139m in three instalments over two years, of which 60% was received at completion. Beyond the capital release, the completion starts a transition in Höganäs Borgestad’s production. The leaseback secures continued production in Bjuv for up to five years, rent-free for the first two, while the leased area is reduced by approximately one third. This allows the Company to decide on and implement its long-term production setup on operational rather than time-driven grounds. In our view, a footprint adapted to actual volumes adds a margin driver toward the 10% target that is not reflected in our estimates.

The transaction has, furthermore, already translated into a return to shareholders. The Board has resolved an extraordinary dividend of NOK 1.50 per share, approximately NOK 52m in total. This corresponds to a yield of approximately 8.7% based on the latest closing price of NOK 17.2 and to three times the ordinary dividend of NOK 0.50 per share for 2025, and brings total dividends since May 2025 to NOK 2.80 per share, approximately NOK 100m. In Analyst Group’s view, this reflects a shareholder-oriented capital allocation, where value realized at asset level reaches shareholders just over two weeks after completion, in line with the Company’s communicated intention to distribute the majority of the proceeds upward through the structure. Management furthermore stated that Borgestad expects to continue distributing excess cash to shareholders if current performance continues. Net interest-bearing debt stood at 2.5x (2.9x) adjusted LTM EBITDA before the proceeds, and approximately SEK 56m of the purchase price is still to be received in 2027 and 2028, so the distribution leaves the Group’s financial flexibility intact. As neither the transaction nor the dividend is included in our estimates, Analyst Group considers the development to represent upside to our published assumptions, which in our view motivates a higher valuation of Borgestad’s shares.

Read Analyst Group’s comment on the report here

About Analyst Group: One of the Nordics’ leading equity research boutiques with focus on small and medium-sized listed companies.Read more about Analyst Group This is a press release from Analyst Group regarding the publication of a comment on Borgestad. Readers may assume that Analyst Group has received compensation for making the comment. The Company has not been given an opportunity to influence the parts where Analyst Group has had opinions about the Company, future valuation or anything else that could be considered a subjective assessment.