AFRY AB Class B (AFRY) AI Stock Analysis

• Market Cap: kr15.21B
• Dividend Yield: 4.09%
• Average Volume (3M): 228.53K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.83
• Revenue Growth: -3.73%
• EPS Growth: -22.34%
• Country: SE
• Employees: 18,091
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 3.19
• 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: kr209.97
• Price Target Upside: 55.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 12.51
• Revenue Forecast (FY): kr26.09B

• Rating: 59 Neutral
• Price Target: kr143.00 ▲(5.85% Upside)
• 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

Strong cash generation and liquidity

AFRY's positive free cash flow growth and stronger operating cash flow provide durable funding for project execution, acquisitions and restructuring. Healthy liquidity (SEK 3.8bn) reduces refinancing risk and supports multi-quarter investments in digital and sustainable engineering projects.

Solid balance sheet and equity ratio

A manageable debt-to-equity position and a solid equity ratio underpin AFRY's financial resilience. This structural balance-sheet strength supports bidding for large infrastructure contracts, cushions cyclical downturns and preserves strategic optionality for capex and M&A over the next several quarters.

Order backlog growth and strategic framework wins

An expanding order backlog and a national-grid framework agreement increase revenue visibility and recurring consultancy demand. Long-term public-sector frameworks and project wins anchor steady work volumes, improving predictability for resource planning and supporting stable revenue over coming quarters.

Negative Factors

Declining net sales / revenue growth

Sustained revenue contraction signals weaker demand in key markets and reduces scale economics. Persisting top-line decline strains margin recovery efforts, heightens reliance on backlog conversion, and requires sustained commercial execution to restore multi-quarter organic growth.

Eroding gross profit margin

A material drop in gross margin points to structural cost pressures or pricing erosion in project work. Lower project-level profitability reduces operating leverage, leaves less room for reinvestment, and makes EBITA margins more sensitive to volume swings and competitive tendering.

Ongoing restructuring costs and execution risk

Large, multi-quarter restructuring charges will consume cash and management attention while implying operational change is needed. Execution risk is heightened: benefits must materialize to offset near-term cost drag, or margins and return metrics may remain depressed through the restructuring period.

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 generates revenue through a diversified model primarily based on consulting services, engineering solutions, and project management fees. The company's key revenue streams include contracts with public and private sector clients for infrastructure projects, energy consulting, and industrial engineering services. Additionally, AFRY benefits from long-term partnerships with various stakeholders in the energy and infrastructure sectors, which facilitate ongoing projects and recurring revenue. The company's emphasis on sustainability and innovation also attracts clients seeking to meet regulatory requirements and improve operational efficiency, further bolstering its earnings.

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	7.49B	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: Neutral
• Last Price: 135.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 135.1 is above the 20-day moving average (MA) of 134.32, below the 50-day MA of 143.03, and below the 200-day MA of 154.74, indicating a neutral trend. The MACD of -3.61 indicates Negative momentum. The RSI at 47.14 is Neutral, neither overbought nor oversold. The STOCH value of 70.98 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SKA.B	68 Neutral	kr114.40B	20.12	10.45%	3.18%	6.02%	26.26%
SWEC.B	65 Neutral	kr52.10B	23.41	18.65%	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	kr31.33B	22.41	10.55%	3.26%	-4.93%	10.91%
AFRY	59 Neutral	kr15.21B	19.13	6.97%	4.09%	-3.73%	-22.34%
BRAV	57 Neutral	kr21.52B	17.48	―	4.22%	-4.21%	10.63%
NCC.B	54 Neutral	kr19.59B	151.80	20.30%	4.17%	5.68%	27.52%

AFRY AB Class B Corporate Events

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.

AFRY Appoints Richard Beard as EVP of Transportation & Places

AFRY has appointed Richard Beard as the new Executive Vice President and Head of the Global Division Transportation & Places, effective January 19, 2026. Richard Beard brings over 35 years of leadership experience in consulting and engineering, with a strong background in strategic business development and transformational change. His appointment is expected to drive growth and enhance collaboration within the division, benefiting AFRY’s operations and stakeholders.

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.