Drillcon AB (DRIL) AI Stock Analysis

• Market Cap: kr198.92M
• Dividend Yield: 6.35%
• Average Volume (3M): 13.85K
• Price to Earnings (P/E): 3848.0
• Beta (1Y): <0.01
• 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: 49 Neutral
• Price Target: kr4.50 ▲(15.68% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is held back mainly by deteriorating 2025 financial performance (near-zero net income, sharply negative free cash flow, and higher debt) and very weak earnings-based valuation (extremely high P/E). Technicals are somewhat supportive with the price above major moving averages, but mixed momentum limits the upside to the overall score.

Positive Factors

Service-based contract business model

A pure service contracting model creates recurring, project-based revenue tied to multi-week/month contracts and billed on time/materials or per-meter terms. This reduces inventory risk and supports steady revenue when utilization and pipeline are stable, a durable source of cash generation for months ahead.

Historically healthy margins (2023–2024)

Prior years' healthy margins indicate the business can combine pricing power with cost control in normal cycles. That track record suggests structural ability to restore profitability if volumes recover, supporting medium-term margin sustainability through operational leverage on rigs and crews.

Manageable leverage through 2024

Moderate historical leverage and stable equity provide balance-sheet capacity to fund capex and seasonal working-capital swings. This financial headroom supports bidding for multi-period contracts and accessing financing if needed, improving resilience across the next several months.

Negative Factors

Weak revenue and near-zero net income in 2025

A swing to materially weaker revenue and near-break-even net income reduces earnings buffers and limits retained earnings for reinvestment. For a service firm reliant on utilization, prolonged weaker demand can compress margins, increase vulnerability to fixed costs, and strain medium-term profitability recovery.

Sharp negative free cash flow in 2025

Volatile and recently negative FCF raises reliance on external financing to fund operations or capex. This limits the company's ability to self-fund fleet maintenance or growth, increases financing costs, and reduces operational flexibility over the next several months if cash conversion doesn't normalize.

Rising debt in 2025 while earnings fell

Increasing debt amid declining earnings heightens leverage risk and interest burden just as operating performance weakens. This combination tightens liquidity, raises refinancing and covenant risk, and constrains strategic options such as fleet investment or absorbing prolonged demand softness over the medium term.

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 makes money primarily by selling contract drilling services to customers in mining and construction. Revenue is generated through service contracts where the company is paid for performing drilling work (e.g., exploration drilling for mining companies and drilling related to underground mining or construction projects). Pricing is typically based on agreed commercial terms such as time and materials (e.g., hourly/day rates for rigs and crews) and/or production-based compensation (e.g., per meter drilled), often with additional billable items such as mobilization/demobilization, standby time, consumables, and logistics depending on contract structure. Earnings are influenced by factors such as utilization of drilling rigs and crews, contract duration and project pipeline, operational efficiency and cost control (labor, fuel/energy, maintenance, and tooling), and overall demand tied to mining exploration budgets and mining/construction activity. Specific data on material partnerships or customer concentration is not available: null.

Drillcon AB Financial Statement Overview

Summary

Financials are mixed: revenue and profitability weakened in 2025 with net income near break-even, while free cash flow turned sharply negative and debt rose, reducing flexibility despite previously healthier 2023–2024 results.

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: Positive
• Last Price: 3.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 3.89 is below the 20-day moving average (MA) of 4.07, below the 50-day MA of 4.13, and below the 200-day MA of 4.11, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 53.15 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	kr2.49B	59.05	9.66%	0.82%	3.86%	-28.91%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RAIL	55 Neutral	kr656.18M	17.42	―	2.45%	4.27%	-3.28%
NORB.B	50 Neutral	kr658.24M	28.32	2.34%	―	4.24%	29.69%
DRIL	49 Neutral	kr198.92M	3,848.05	―	6.35%	-4.44%	-68.88%
ELTEL	48 Neutral	kr1.33B	58.96	0.72%	―	-6.38%	―
SALT.B	46 Neutral	kr813.22M	-12.66	-39.97%	―	11.85%	6.39%