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AFRY AB Class B
(AFRY)
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Rating:60Neutral
Price Target:
kr107.00
▼(-18.82% Downside)
Action:Reiterated
Date:07/16/26
The score is held back primarily by weak technicals (price below all key moving averages and negative MACD) and notable income-statement risk signals (sharp TTM revenue contraction and negative gross profit margin), despite strong cash generation and manageable leverage. Valuation is supportive (mid-teens P/E and high dividend yield), and the latest earnings call points to improving setup via record backlog growth and better cash flow, but near-term organic growth remains negative and leverage is still elevated.
Positive Factors
Cash generation
Very strong operating and free cash flow that closely tracks reported earnings provides durable internal funding. This cash conversion supports debt service, dividends, selective M&A and investments in digital/efficiency platforms, reducing reliance on external financing over the medium term.
Negative Factors
Revenue collapse & gross margin anomaly
A very large TTM revenue contraction and reported negative gross margin are structural red flags: loss of scale and project-level profitability can erode pricing power, reduce fixed-cost absorption, and require sustained remediation to restore sustainable margins and earnings quality.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Very strong operating and free cash flow that closely tracks reported earnings provides durable internal funding. This cash conversion supports debt service, dividends, selective M&A and investments in digital/efficiency platforms, reducing reliance on external financing over the medium term.
Read all positive factors
AFRY AB Class B (AFRY) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr11.57B
Dividend Yield5.84%
Average Volume (3M)228.53K
Price to Earnings (P/E)14.7
Beta (1Y)0.86
Revenue Growth-5.02%
EPS Growth-15.85%
CountrySE
Employees17,301
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)6.98
Shares Outstanding108,961,400
10 Day Avg. Volume124,467
30 Day Avg. Volume228,528
Financial Highlights & Ratios
PEG Ratio-0.61
Price to Book (P/B)1.34
Price to Sales (P/S)0.66
P/FCF Ratio7.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
kr200.00Price Target Upside51.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)10.19
Revenue Forecast (FY)kr25.15B
AFRY AB Class B Business Overview & Revenue Model
Company Description
Afry AB provides engineering, design, and advisory services for the infrastructure, industry, and energy sectors in the Nordics, North America, South America, Asia, rest of Europe, and internationally. It operates through Energy, Industry, and Tra...
How the Company Makes Money
AFRY primarily makes money by selling time- and expertise-based professional services (consulting/engineering/advisory) to clients, with revenue recognized as services are delivered. Key revenue streams typically include: (1) Engineering and advis...
AFRY AB Class B Earnings Call Summary
Earnings Call Date:Jul 15, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call presents a cautiously optimistic outlook: AFRY completed its restructuring, reports record backlog growth (notably in energy), improving utilization and strong operational cash flow, and identifies clear strategic growth areas (data centers, energy, mining/metals). However, the company faces near‑term headwinds including negative adjusted organic growth (-5.3%), market price pressure in specific segments (automotive, parts of buildings), and temporary leverage resulting from recent transactions and dividends. While current profitability gains are not yet fully realized, the structural actions, backlog quality, and efficiency initiatives suggest upside over the medium term.Positive Updates
Record Order Backlog Growth
Order backlog reached SEK 22.4 billion, an 8% year‑over‑year increase and a 4.2% sequential increase; company states this is the highest-ever reported backlog.
Negative Updates
Negative Adjusted Organic Sales Growth
Adjusted organic sales growth was -5.3% (calendar adjusted) in Q2, reflecting strategic capacity reductions and lower volumes; total sales declined -2.4% year‑over‑year with Q2 net sales at SEK 6.5 billion.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Order Backlog Growth
Order backlog reached SEK 22.4 billion, an 8% year‑over‑year increase and a 4.2% sequential increase; company states this is the highest-ever reported backlog.
Read all positive updates
Company Guidance
AFRY's forward guidance emphasized a shift from restructuring to organic growth while the restructuring program is now closed: expect leverage to remain ~3x in Q3 and to finish the year at or below the financial target as restructuring costs phase out in H2; the company targets a 74% utilization rate by 2028 and aims to grow the order backlog toward SEK 30 billion in the strategy period. Operationally, management said roughly 50% of the SEK 22.4 billion backlog (up 8% YoY, 4.2% sequential) should convert to revenue within 12 months; energy backlog has surpassed SEK 7 billion (up 18% YoY). Q2 metrics: net sales SEK 6.5 billion (total growth -2.4%, adjusted organic -5.3%), EBITDA excluding IAC SEK 434 million (margin 6.7%; rolling 12‑month EBITDA margin 7.3%), utilization 73.5% (rolling 12 at 72.6%), rolling 12‑month net sales SEK 25.2 billion, operational cash flow in Q2 roughly SEK 500 million stronger than prior year, available liquidity SEK 4.3 billion and net debt SEK 4.7 billion; Q2 included SEK 54 million of IAC restructuring costs and SEK 15 million of AMC transaction costs.AFRY AB Class B Financial Statement Overview
Summary
Income Statement
53
Neutral
Balance Sheet
66
Positive
Cash Flow
77
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.17B | 25.76B | 27.16B | 26.98B | 23.55B | 20.10B |
| Gross Profit | -2.98B | 1.65B | 21.46B | 5.08B | 20.49B | 16.22B |
| EBITDA | 2.39B | 2.50B | 2.92B | 2.79B | 2.26B | 2.37B |
| Net Income | 791.00M | 800.00M | 1.23B | 1.10B | 974.00M | 1.13B |
Balance Sheet | ||||||
| Total Assets | 28.31B | 27.04B | 28.30B | 28.17B | 28.00B | 25.91B |
| Cash, Cash Equivalents and Short-Term Investments | 1.20B | 1.38B | 1.27B | 1.17B | 1.09B | 2.11B |
| Total Debt | 7.30B | 6.61B | 7.25B | 7.86B | 7.80B | 7.65B |
| Total Liabilities | 15.56B | 14.36B | 15.15B | 15.72B | 15.82B | 14.92B |
| Stockholders Equity | 12.75B | 12.68B | 13.13B | 12.45B | 12.18B | 10.99B |
Cash Flow | ||||||
| Free Cash Flow | 2.42B | 2.13B | 1.86B | 1.65B | 891.00M | 1.38B |
| Operating Cash Flow | 2.50B | 2.22B | 1.99B | 1.79B | 1.04B | 1.50B |
| Investing Cash Flow | -938.00M | -329.00M | -383.00M | -756.00M | -873.00M | -1.21B |
| Financing Cash Flow | -1.13B | -1.68B | -1.47B | -942.00M | -1.01B | -12.00M |
AFRY AB Class B Technical Analysis
Neutral
131.80
Price Trends
107.87
Negative
112.87
Negative
127.20
Negative
Market Momentum
-0.94
Negative
50.67
Neutral
90.69
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:AFRY, the sentiment is Neutral. The current price of 131.8 is above the 20-day moving average (MA) of 103.98, above the 50-day MA of 107.87, and above the 200-day MA of 127.20, indicating a neutral trend. The MACD of -0.94 indicates Negative momentum. The RSI at 50.67 is Neutral, neither overbought nor oversold. The STOCH value of 90.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:AFRY.
AFRY AB Class B Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | kr48.36B | 21.22 | 18.15% | 2.78% | 5.87% | 7.65% | |
69 Neutral | kr26.90B | 19.13 | ― | 2.74% | 1.66% | 26.04% | |
68 Neutral | kr109.76B | 16.65 | 10.96% | 3.18% | -5.70% | 6.78% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | kr27.79B | 12.87 | 12.81% | 3.32% | 2.19% | 36.51% | |
60 Neutral | kr11.57B | 14.73 | 6.19% | 4.09% | -5.02% | -15.85% | |
48 Neutral | kr15.10B | 214.94 | 1.00% | 4.17% | -10.38% | -95.01% |
* Industrials Sector Average
SE:AFRY
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AFRY AB Class B Corporate Events
AFRY Maintains Profitability Amid Lower Sales and Growing Order Backlog
Jul 15, 2026
AFRY reported a solid order backlog of SEK 22.4 billion at the end of the second quarter of 2026, underscoring continued demand for its engineering and consulting services despite softer top-line trends. The company’s utilization rate improv...
AFRY schedules July 15 presentation of Q2 2026 results
Jul 1, 2026
Engineering and advisory group AFRY, which focuses on enabling the energy and industrial transition and strengthening societal resilience, operates through a network of roughly 18,000 experts worldwide and combines global reach with deep local and...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.