AFRY AB Class B (AFRY) AI Stock Analysis

• Market Cap: kr13.69B
• Dividend Yield: 4.09%
• Average Volume (3M): 228.53K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 0.78
• Revenue Growth: -3.73%
• EPS Growth: -22.34%
• Country: SE
• Employees: 18,091
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 3.31
• Shares Outstanding: 108,961,400
• 10 Day Avg. Volume: 124,467
• 30 Day Avg. Volume: 228,528
• PEG Ratio: -0.61
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 7.97
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: kr210.00
• Price Target Upside: 59.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 12.51
• Revenue Forecast (FY): kr26.02B

• Rating: 59 Neutral
• Price Target: kr127.00 ▼(-3.64% Downside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven primarily by solid cash flow and manageable balance-sheet risk, supported by earnings-call indicators of operational stabilization (margin improvement and stronger backlog). These positives are tempered by a clearly weak technical trend and recent fundamental softness (declining revenue/net income) alongside ongoing restructuring and headwinds.

Positive Factors

Consistent Free Cash Flow

AFRY's recurring positive free cash flow and its improvement in 2025 indicate the business converts earnings to cash reliably. Durable cash generation supports reinvestment, dividend continuity, deleveraging and flexibility to fund restructuring paybacks or selective bids over a multi‑year horizon.

Manageable Leverage & Strong Equity Base

Reported leverage around mid‑0.5x–0.7x and a stable equity base provide balance‑sheet resilience. This structural financial strength lowers refinancing risk, supports countercyclical investment and preserves capacity to absorb restructuring costs while maintaining strategic bids and client service levels.

Order Backlog and Market Position

A growing backlog (+5.4% adj.) combined with notable contracts and high ENR industry rankings underpin durable demand and market leadership in key verticals. Strong backlog and reputation improve medium‑term revenue visibility and support cross‑selling across energy, infrastructure and industry segments.

Negative Factors

Declining Organic and Reported Sales

Sustained negative organic growth and declining reported sales weaken scale and utilization, pressuring margins and fee negotiating leverage. If demand recovery is slow, structural top‑line erosion could impair long‑term margin restoration and prolong the payback timeline for restructuring investments.

Restructuring Costs and Execution Risk

Planned personnel‑led restructuring yields medium‑term run‑rate savings but requires near‑term cash outlays and execution across divisions. High end of cost guidance and implementation complexity raise execution risk; delayed or lower-than-expected savings would prolong earnings recovery and cash efficiency gains.

Margin Volatility and Division-Level Weakness

Volatile gross margins and specific division sales weakness point to inconsistent project mix and pricing pressure. Structural margin variability undermines predictability of profitability, complicates capacity planning and could erode client pricing power if competitive or macro pressures persist.

AFRY AB Class B Business Overview & Revenue Model

Company Description

Afry AB provides engineering, design, and advisory services for the infrastructure, industry, energy, and digitalization sectors in Sweden, Finland, Norway, Switzerland, Denmark, Germany, and internationally. The company operates through five divisions: Infrastructure, Industrial & Digital Solutions, Process Industries, Energy, and Management Consulting. The company offers architecture and design services; automation and manufacturing solutions; automotive and mobility services; building solutions for airports, culture and sports facilities, high security facilities, hospitals, healthcare and research, hotels and restaurants, and housing facilities; defense technology systems; digital solutions, and information and communication technology services; and engineering and consulting services for energy and power applications. It also offers environmental and sustainability solutions; services for food, life science, and pharmaceutical industries; management consulting services; solutions for processing industries, including mining and metals, food and beverage, pulp and paper, chemical, and forest industries; product development services; project management services; transport infrastructure services; and solutions for water management. The company was formerly known as ÅF Pöyry AB (publ) and changed its name to Afry AB in June 2021. Afry AB was founded in 1895 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

AFRY primarily makes money by selling professional services—engineering, consulting, design, and project services—under client contracts. Revenue is mainly generated from (1) time-and-materials consulting assignments where clients pay based on billable hours and agreed rates for AFRY’s specialists, and (2) fixed-price or milestone-based project delivery where AFRY is paid per deliverable, stage, or completion of defined project scope. A significant portion of earnings comes from long-running framework agreements and repeat business with large industrial companies and public authorities that procure ongoing engineering and advisory capacity. AFRY also earns revenue from multidisciplinary project work that combines advisory/strategy, engineering/design, and project management across sectors such as energy, infrastructure, and process industries. If any material revenue contributions from software licensing, proprietary products, or specific named partnerships are required, they are null.

AFRY AB Class B Financial Statement Overview

Summary

Cash generation is a key strength with consistently positive and improving free cash flow, and leverage is described as manageable. Offsetting this, revenue and net income weakened in 2025, ROE softened, and gross margin volatility reduces confidence in earnings consistency.

Income Statement

Revenue has been broadly stable but is losing momentum (near-flat in 2024 and down in 2025), which is a near-term headwind. Profitability is moderate for the sector with EBIT and EBITDA margins generally in the mid-to-high single digits, but net profit has declined versus 2024 (lower net margin). A key concern is the large year-to-year volatility in reported gross margin, which reduces confidence in earnings quality/consistency even though operating margins look steadier.

Balance Sheet

Leverage looks manageable with debt-to-equity consistently around the mid-0.5x to ~0.7x range, suggesting no outsized balance-sheet strain. Equity has remained sizable and relatively stable, supporting resilience. Returns on equity have been decent but have softened in 2025 versus prior years, indicating weaker profitability translating to lower shareholder returns.

Cash Flow

Cash generation is a relative strength: free cash flow has been positive every year provided and improved again in 2025, and free cash flow is close to net income, suggesting earnings are broadly cash-backed. Operating and free cash flow rebounded strongly after a weaker 2022, although cash flow growth has been volatile year-to-year, which introduces some planning risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	25.76B	27.16B	26.98B	23.55B	20.10B
Gross Profit	1.65B	21.46B	5.08B	18.66B	16.19B
EBITDA	2.50B	2.92B	2.79B	2.26B	2.37B
Net Income	800.00M	1.23B	1.10B	974.00M	1.13B
Balance Sheet
Total Assets	27.04B	28.30B	28.17B	28.00B	25.91B
Cash, Cash Equivalents and Short-Term Investments	1.38B	1.27B	1.17B	1.09B	2.11B
Total Debt	6.61B	7.25B	7.86B	7.80B	7.65B
Total Liabilities	14.36B	15.15B	15.72B	15.82B	14.92B
Stockholders Equity	12.68B	13.13B	12.45B	12.18B	10.99B
Cash Flow
Free Cash Flow	2.13B	1.86B	1.62B	891.00M	1.38B
Operating Cash Flow	2.22B	1.99B	1.79B	1.04B	1.50B
Investing Cash Flow	-329.00M	-383.00M	-756.00M	-873.00M	-1.21B
Financing Cash Flow	-1.68B	-1.47B	-942.00M	-1.01B	-12.00M

AFRY AB Class B Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 131.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:AFRY, the sentiment is Negative. The current price of 131.8 is above the 20-day moving average (MA) of 128.61, below the 50-day MA of 136.45, and below the 200-day MA of 151.51, indicating a bearish trend. The MACD of -3.62 indicates Positive momentum. The RSI at 30.81 is Neutral, neither overbought nor oversold. The STOCH value of 11.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:AFRY.

AFRY AB Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SKA.B	68 Neutral	kr99.84B	14.19	10.45%	3.18%	6.02%	26.26%
SWEC.B	65 Neutral	kr47.99B	24.43	18.52%	2.20%	2.79%	14.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PEAB.B	61 Neutral	kr27.92B	17.86	10.55%	3.26%	-4.93%	10.91%
AFRY	59 Neutral	kr13.69B	21.23	6.31%	4.09%	-3.73%	-22.34%
BRAV	57 Neutral	kr19.83B	14.91	―	4.22%	-4.21%	10.63%
NCC.B	54 Neutral	kr18.23B	151.66	1.79%	4.17%	5.68%	27.52%

AFRY AB Class B Corporate Events

AFRY Sets 2026 AGM to Decide on Governance, Dividend and New Share Mandate

AFRY AB has convened its 2026 Annual General Meeting for 28 April at its Solna head office, giving shareholders the option to participate either in person, by proxy, or via postal voting in line with its Articles of Association. Shareholders must be registered with Euroclear Sweden by 20 April and confirm their participation or submit postal votes by 22 April, with specific procedures for nominee-registered and corporate shareholders.

The AGM agenda covers the approval of the annual and consolidated financial statements, discharge of liability for the board and CEO, approval of the remuneration report, and decisions on dividend allocation. Shareholders will also vote on board and auditor elections, board and auditor remuneration, a performance-based long-term cash programme for 2026, and an authorization for the board to issue new shares, measures that collectively shape AFRY’s governance, capital structure, and long-term incentive framework for the coming years.

The most recent analyst rating on (SE:AFRY) stock is a Buy with a SEK134.00 price target. To see the full list of analyst forecasts on AFRY AB Class B stock, see the SE:AFRY Stock Forecast page.

AFRY Highlights Sustainability Focus in 2025 Annual and Sustainability Report

AFRY has released its Annual and Sustainability Report 2025, emphasizing its promise to unlock transitions toward a more sustainable and resilient society. The report underlines AFRY’s role in delivering long-lasting solutions that support generational change, reinforcing its strategic positioning as a key partner for clients seeking sustainability-driven transformation.

By highlighting its blend of global capabilities and local market insight, AFRY positions the new report as a showcase of how its sector expertise translates into practical, future-oriented projects. The communication strengthens the company’s brand around “Making Future,” signaling continued commitment to sustainability as a core driver of its operations and relationships with stakeholders.

The most recent analyst rating on (SE:AFRY) stock is a Buy with a SEK210.00 price target. To see the full list of analyst forecasts on AFRY AB Class B stock, see the SE:AFRY Stock Forecast page.

AFRY Holds Dividend Steady Despite Lower 2025 Sales and Earnings

AFRY AB reported weaker financial results for the fourth quarter and full year 2025, with net sales falling 6.2% in the quarter and 5.2% for the year, and negative organic growth after calendar adjustments. Profitability softened year-on-year, as EBITA and earnings per share declined, although the EBITA margin excluding items affecting comparability improved slightly in the fourth quarter, indicating some efficiency gains from ongoing efforts to focus, simplify and harmonise the business. Despite lower earnings, the Board proposes maintaining the dividend at SEK 6.00 per share, signalling confidence in the company’s financial resilience and its long-term strategy to improve operations in a challenging market environment.

The most recent analyst rating on (SE:AFRY) stock is a Hold with a SEK153.00 price target. To see the full list of analyst forecasts on AFRY AB Class B stock, see the SE:AFRY Stock Forecast page.

AFRY to Present 2025 Year-End Results on 5 February 2026

AFRY has announced that it will present its year-end report for 2025 on Thursday, 5 February 2026 at 10:00 CET, led by President and CEO Linda Pålsson and CFO Bo Sandström, with the report itself to be published earlier that morning. Investors, analysts and media can follow the event live via a Teams meeting, which allows questions during a Q&A session, or via a YouTube webcast, and all related materials and the recorded presentation will be made available afterward on the company’s investor relations website, underscoring AFRY’s continued emphasis on transparency and proactive engagement with the financial market.

The most recent analyst rating on (SE:AFRY) stock is a Hold with a SEK168.00 price target. To see the full list of analyst forecasts on AFRY AB Class B stock, see the SE:AFRY Stock Forecast page.