Architects and Building could lift billing ratio

Q4: EBITA adj. -6% below expectations

Norva24 (Buy, TP: SEK37.00) - Still not firing on all cylinders

The Q4 results were mixed, with the German project business (to be discontinued) weighing on performance. We have tweaked our EPS forecasts post-Q4, and await Norva24’s CMD, where it will likely detail ambitious profitable growth targets for the coming strategy period. Demand in the fragmented European UIM service market remains strong, in our view supporting a financial model with the potential for a ‘buy-and-build’ sector roll-up. We reiterate our BUY and SEK37 target price.

ISS (Buy, TP: DKK183.00) - Buyback floodgate opened

ISS narrowly achieved its Q4 EBITA margin target of >5% and missed EBITA by 2%. We believe the results were decent, but that the company is not yet at a comfortable >5% margin position. The main positive was the DKK2.5bn buyback programme, double the consensus expectations. We reiterate our BUY and have raised our target price to DKK183 (171).

FLSmidth (Buy, TP: DKK430.00) - Earnings quality boost well on track

We have raised our 2025–2026e clean EBITA by c3% after solid Q4 beats on orders and clean EBITA (our 2025e sales and clean EBITA are a touch above the guidance). We reiterate our BUY and DKK430 target price, and continue to see improving earnings quality and an attractive valuation.