Infrea AB (INFREA) AI Stock Analysis

• Market Cap: kr496.46M
• Dividend Yield: 3.51%
• Average Volume (3M): 13.64K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.29
• Revenue Growth: 7.83%
• EPS Growth: N/A
• Country: SE
• Employees: 507
• Sector: Technology
• Sector Strength: 88
• Industry: Asset Management
• EPS (TTM): 2.12
• Shares Outstanding: 30,088,408
• 10 Day Avg. Volume: 10,558
• 30 Day Avg. Volume: 13,643
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 7.51
• 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): 1.4
• Revenue Forecast (FY): kr2.15B

• Rating: 65 Neutral
• Price Target: kr16.50 ▲(16.20% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is led by attractive valuation (low P/E and a ~3.2% dividend yield) and constructive technical trend (price above major moving averages with moderate momentum). These positives are tempered by mixed financial performance: leverage has improved and cash flow remains positive, but 2025 revenue declined and profitability/margins have been volatile and very thin.

Positive Factors

Improved balance sheet

A materially lower debt-to-equity ratio strengthens financial resilience and reduces interest burden, giving Infrea more flexibility to bid on public projects, withstand contract timing mismatches, and fund working capital. This balance-sheet improvement supports durability across the next several quarters.

Consistent positive cash generation

Repeated positive operating and free cash flow indicate the core contracting business converts project work into cash, enabling reinvestment, modest shareholder distributions, and buffer for overruns. Sustained cash generation underpins operational continuity and funding of backlog over months.

Diversified contracting revenue streams

A mix of fixed/unit contracts, recurring maintenance, and subcontract coordination provides revenue diversification and utilization smoothing. Recurring maintenance and service work can stabilize activity between large projects, supporting steadier utilization and long-term capacity planning.

Negative Factors

Thin profitability margins

Margins near breakeven leave little room for cost inflation, subcontractor issues, or project delays. In contracting, tiny gross and operating margins increase the probability that single-project cost overruns materially impact reported earnings and cash, weakening durable profitability.

Choppy free cash flow

Although FCF is positive, a large year-over-year drop and low OCF-to-revenue ratio signal volatile cash conversion. That variability can constrain reinvestment, reduce cushion for bid security or retention, and impair ability to fund working capital during multi-quarter project cycles.

Inconsistent returns and earnings power

Fluctuating returns make future profitability and capital allocation outcomes uncertain. Management may face tougher borrowing or investment trade-offs, and investors/customers may see performance unpredictability, limiting confidence in sustainable earnings over a 2-6 month horizon.

Infrea AB Business Overview & Revenue Model

Company Description

Infrea AB is a publicly owned investment manager. The firm invests in infrastructure. The firm was formerly known as Grand Capital. Infrea AB is based in Stockholm, Sweden.

How the Company Makes Money

Infrea AB generates revenue through multiple channels, primarily by offering subscription-based software services and consultancy fees for its digital infrastructure solutions. The company partners with municipalities and private enterprises to implement smart city projects, which often involve long-term contracts. Additionally, Infrea benefits from government grants and incentives aimed at promoting sustainable development and digital innovation. The combination of these revenue streams, along with strategic partnerships with technology providers and infrastructure firms, contributes significantly to its earnings.

Infrea AB Financial Statement Overview

Summary

Balance sheet is a relative strength with meaningfully lower leverage (debt-to-equity down to ~0.31) and ROE turning positive (~9.2%) in 2025. Offsetting this, revenue declined in 2025 (down 6.7% YoY) and profitability has been volatile, with extremely thin reported gross/operating margins (~0.6%) and inconsistent net results. Cash flow is consistently positive, but declined in 2025 (FCF down 37.1% YoY), limiting confidence in earnings durability.

Income Statement

Revenue has been broadly flat over the last few years and turned down in 2025 (down 6.7% year over year). Profitability is volatile: the company swung from losses in 2023–2024 to a profit in 2025, but 2025 shows extremely thin gross and operating profitability (gross profit margin ~0.6% and operating margin ~0.6%), which is a notable deterioration versus prior years. EBITDA margin has held in the mid-single-digits, but the sharp compression in reported gross/operating profitability and inconsistent net results weigh on the score.

Balance Sheet

Leverage has improved meaningfully, with debt-to-equity declining from ~0.71 (2023) to ~0.31 (2025), supporting balance-sheet resilience. Equity has also grown versus earlier years, and 2025 returns on equity are positive (~9.2%) after negative returns in 2023–2024. The main weakness is that overall returns remain modest and have been inconsistent across years, suggesting earnings power is not yet stable.

Cash Flow

Cash generation is generally positive, with operating cash flow and free cash flow positive in each year shown, and free cash flow in 2025 covering most of net income (~0.89x), which supports earnings quality. However, cash flow is choppy: operating cash flow and free cash flow fell in 2025 (free cash flow down 37.1% year over year), and operating cash flow relative to revenue remains low (~15.4% in 2025). This variability tempers the score despite consistent positivity.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.07B	2.08B	2.01B	2.09B	1.26B
Gross Profit	13.30M	703.90M	706.20M	472.20M	335.10M
EBITDA	91.20M	106.60M	98.30M	164.90M	81.60M
Net Income	63.00M	-8.00M	-7.60M	68.30M	6.20M
Balance Sheet
Total Assets	1.28B	1.38B	1.34B	1.36B	1.10B
Cash, Cash Equivalents and Short-Term Investments	218.00M	155.80M	66.90M	125.00M	106.70M
Total Debt	215.50M	360.40M	401.50M	376.50M	336.30M
Total Liabilities	593.90M	741.90M	775.30M	784.40M	612.80M
Stockholders Equity	685.70M	637.60M	563.60M	575.20M	488.80M
Cash Flow
Free Cash Flow	56.70M	79.90M	11.20M	102.30M	3.70M
Operating Cash Flow	63.90M	99.70M	30.40M	135.00M	34.10M
Investing Cash Flow	140.50M	-7.10M	-4.00M	-88.50M	-138.70M
Financing Cash Flow	-142.10M	-3.80M	-84.50M	-28.20M	100.20M

Infrea AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:INFREA, the sentiment is Positive. The current price of 14.2 is below the 20-day moving average (MA) of 15.84, below the 50-day MA of 14.87, and below the 200-day MA of 14.26, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 60.77 is Neutral, neither overbought nor oversold. The STOCH value of 90.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:INFREA.

Infrea AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CASE	71 Outperform	kr727.37M	17.29	―	―	34.18%	242.91%
INFREA	65 Neutral	kr496.46M	7.85	―	3.51%	7.83%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SEAF	54 Neutral	kr343.63M	-85.96	―	―	-1.52%	-43.08%
STWK	50 Neutral	kr136.65M	-5.78	―	―	5.41%	20.99%
NAXS	49 Neutral	kr381.84M	-15.80	―	8.78%	―	―
ATIN	46 Neutral	kr231.57M	-4.02	―	―	―	―