Drillcon AB (DRIL) AI Stock Analysis

• Market Cap: kr173.94M
• Dividend Yield: 6.35%
• Average Volume (3M): 13.85K
• Price to Earnings (P/E): 3900.0
• Beta (1Y): 0.07
• Revenue Growth: -4.44%
• EPS Growth: -68.88%
• Country: SE
• Employees: 283
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.14
• Shares Outstanding: 44,600,000
• 10 Day Avg. Volume: 13,830
• 30 Day Avg. Volume: 13,845
• PEG Ratio: -38.57
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.42
• P/FCF Ratio: -4.26
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: kr4.50 ▲(15.68% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is primarily constrained by weakening 2025 financial performance, especially the sharp drop in profitability and free cash flow alongside higher debt. Technicals provide a moderate tailwind with prices above key moving averages and positive MACD. Valuation is a balancing factor: the high P/E offsets the attractive dividend yield.

Positive Factors

Service-based contract drilling model

Drillcon's core business is providing contract drilling services to mining and construction clients, a recurring service model tied to multi-month project contracts. This asset-backed service orientation creates durable revenue streams tied to exploration and infrastructure cycles and supports stable long-term client relationships and repeat business.

Consistent positive operating cash flow

Sustained positive operating cash flow across 2023–2025 indicates the core drilling operations generate cash even amid volatility. Persistent operating cash generation supports working capital needs, routine maintenance and debt service, giving management flexibility to navigate cyclical industry demand without immediate reliance on external financing.

Historically moderate leverage

Debt-to-equity in the ~0.5–0.8 range historically implies a conservative capital structure relative to asset intensity. Stable equity and moderate leverage provide capacity to absorb cyclical shocks, access credit if needed, and finance fleet or working capital investments without eroding solvency under typical market cycles.

Negative Factors

Revenue volatility and recent contractions

Revenue volatility and consecutive contractions through 2024–2025 reduce visibility into utilization and backlog. For a contract services provider, unpredictable top-line flows complicate crew/rig deployment and fixed-cost absorption, increasing unit-cost risk and making multi-period planning and margin preservation more difficult over a 2–6 month horizon.

Sharp profit deterioration in 2025

Net income declining to near break-even materially erodes retained earnings and reduces the company's ability to self-finance growth or fleet renewal. Persistently thin net profitability tightens cushions against downturns, constrains reinvestment, and can force trade-offs between maintenance capex and short-term liquidity needs, harming long-term competitiveness.

Free cash flow swung sharply negative in 2025

A sharp negative free cash flow outturn in 2025 signals elevated capex or working-capital needs that outpaced operating cash generation. Negative FCF increases dependence on borrowing or equity raises, elevates refinancing and liquidity risk, and may limit capital spending on fleet upkeep, affecting long-term service capacity and reliability.

Drillcon AB Business Overview & Revenue Model

Company Description

Drillcon AB (DRIL) is a Swedish company specializing in drilling and blasting services for the mining and construction sectors. The company operates primarily in Scandinavia and offers a range of core products and services including underground drilling, rock excavation, and associated services aimed at optimizing the efficiency and safety of drilling operations. Drillcon is committed to sustainable practices and incorporates advanced technologies to enhance its service delivery.

How the Company Makes Money

Drillcon AB generates revenue primarily through contracts for drilling and blasting services in the mining and construction industries. The company typically engages in both short-term and long-term projects, which provide a steady stream of income. Key revenue streams include service fees for drilling operations, project management fees, and sales of related materials and equipment. Drillcon also benefits from partnerships with mining companies, construction firms, and government projects, which can lead to recurring business opportunities. Additionally, the company invests in advanced drilling technology, allowing it to offer specialized services that can command higher fees, further enhancing its profitability.

Drillcon AB Financial Statement Overview

Summary

Financials are mixed and weakened in 2025: revenue contracted, net income fell to near break-even, and free cash flow turned sharply negative despite positive operating cash flow. Leverage remains manageable, but rising debt alongside weaker earnings reduces flexibility.

Income Statement

Revenue has been volatile, with a strong rebound in 2021–2023 followed by contractions in 2024 and 2025. Profitability also weakened sharply in 2025: EBIT and EBITDA stayed positive, but net income fell to near break-even after solid profitability in 2023–2024. Margins were healthy in 2023–2024, but the 2025 profit drop signals execution and/or cost pressure risk.

Balance Sheet

Leverage looks manageable overall: debt-to-equity was moderate in 2021–2024 (roughly ~0.5–0.8) and equity remained fairly stable, supporting the asset base. However, total debt rose in 2025 versus 2024 while earnings fell sharply, which reduces balance-sheet flexibility if the weaker profitability persists.

Cash Flow

Cash generation has been inconsistent. Operating cash flow was strong in 2023–2024 and remained positive in 2025, but free cash flow swung materially from strong positive in 2023 to modest positive in 2024 and sharply negative in 2025. This pattern suggests elevated investment needs and/or working-capital swings, increasing reliance on financing during weaker periods.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	394.57M	416.38M	472.86M	413.97M	374.07M
Gross Profit	8.34M	25.49M	411.83M	352.63M	326.60M
EBITDA	41.42M	60.08M	61.02M	38.79M	22.50M
Net Income	43.00K	20.01M	20.99M	3.64M	-6.87M
Balance Sheet
Total Assets	406.13M	362.81M	349.04M	355.30M	323.49M
Cash, Cash Equivalents and Short-Term Investments	37.22M	51.27M	56.46M	19.60M	10.30M
Total Debt	130.50M	92.51M	83.51M	111.15M	75.48M
Total Liabilities	235.78M	190.71M	184.24M	209.15M	182.82M
Stockholders Equity	170.34M	172.10M	164.80M	146.15M	140.67M
Cash Flow
Free Cash Flow	-38.85M	5.00M	66.23M	-22.96M	-56.61M
Operating Cash Flow	34.08M	43.14M	73.46M	1.27M	-665.00K
Investing Cash Flow	-72.93M	-38.14M	-6.64M	-24.23M	-53.31M
Financing Cash Flow	26.60M	-8.64M	-27.61M	34.91M	16.27M

Drillcon AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:DRIL, the sentiment is Negative. The current price of 3.89 is below the 20-day moving average (MA) of 4.15, below the 50-day MA of 4.06, and below the 200-day MA of 4.13, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 41.07 is Neutral, neither overbought nor oversold. The STOCH value of 20.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:DRIL.

Drillcon AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SVIK	69 Neutral	kr2.35B	63.02	5.48%	0.82%	3.86%	-28.91%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RAIL	55 Neutral	kr698.39M	17.55	―	2.45%	4.27%	-3.28%
DRIL	53 Neutral	kr173.94M	3,900.00	―	6.35%	-4.44%	-68.88%
NORB.B	50 Neutral	kr724.06M	25.32	1.98%	―	4.24%	29.69%
ELTEL	48 Neutral	kr1.45B	242.52	0.72%	―	-6.38%	―
SALT.B	46 Neutral	kr884.73M	-11.65	-40.77%	―	11.85%	6.39%