Instalco AB (INSTAL) AI Stock Analysis

• Market Cap: kr8.78B
• Dividend Yield: 2.67%
• Average Volume (3M): 619.25K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 1.04
• Revenue Growth: -3.68%
• EPS Growth: -48.79%
• Country: SE
• Employees: 6,199
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.50
• Shares Outstanding: 268,754,760
• 10 Day Avg. Volume: 663,472
• 30 Day Avg. Volume: 619,254
• PEG Ratio: -8.82
• Price to Book (P/B): 2.15
• Price to Sales (P/S): 0.51
• P/FCF Ratio: 6.86
• 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): 2.28
• Revenue Forecast (FY): kr14.27B

• Rating: 64 Neutral
• Price Target: kr33.00 ▲(27.61% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by mid-range financial performance—recent revenue and profit compression and weaker free-cash-flow momentum are partly offset by a meaningful 2025 deleveraging. Technicals are a clear positive with strong trend/momentum signals, while valuation is a modest headwind due to a higher P/E and only moderate yield.

Positive Factors

Balance-sheet deleveraging

A material debt reduction in 2025 meaningfully strengthens Instalco's financial flexibility over the medium term. Lower leverage reduces interest-service pressure, increases headroom for acquisitions or cyclical shocks, and supports capital allocation choices (capex, maintenance, bolt-ons) without requiring immediate operational improvement.

Decentralized service-led model

Instalco’s decentralized network of specialized subsidiaries creates durable local market positions, recurring service revenue, and cross-selling across electrical, HVAC and ventilation disciplines. This structure supports consistent aftermarket demand, reduces single-site operational risk, and makes bolt-on acquisitions easier to integrate long term.

Historically solid cash conversion

Across multiple years Instalco converted a high share of earnings into free cash flow, demonstrating structural cash-generative ability from project plus service mix. Sustained cash conversion supports reinvestment, debt paydown and resilience through cycles, even if near-term FCF is volatile.

Negative Factors

Top-line slowdown

A reversal from multi-year expansion to slight revenue decline indicates weakening demand or pricing pressure in core installation markets. Persistent top-line softness reduces economies of scale, limits cross-sell upside, and makes restoring margin and cash generation harder without structural market or commercial changes.

Margin / earnings compression

Falling net income versus the 2023 peak suggests margin pressure from higher costs, mix shifts, or pricing limits. Compressed profitability reduces retained earnings and free cash flow, weakening the company's ability to self-fund growth, absorb shocks, and maintain investment in service capabilities over the medium term.

Volatile free-cash-flow momentum

Sharp swing to negative FCF in 2025 highlights operational or working-capital volatility that can recur. Inconsistent cash generation increases refinancing and execution risk, complicates capital allocation, and reduces the margin of safety for debt repayment or acquisitive growth even if balance-sheet leverage has recently improved.

Instalco AB Business Overview & Revenue Model

Company Description

Instalco AB (publ) provides installation services in the heating and plumbing, electrical, ventilation, cooling, and industrial areas in Sweden and rest of Nordic. The company is involved in the designing, project planning, and assembly services for electricity; alarms and monitoring; data network and control of technical equipment; energy optimization through integrated property automation; charging posts for electric cars; remote reading; control technology and automatics; and related service and maintenance services to construction firms, property companies, government agencies, local authorities and regions, and housing and industrial companies. It also provides heating and plumbing services, including installation of district heating, natural gas, heat pumps, and comfort cooling; pipe replacement and preventative maintenance; water treatment and water consumption; sprinkler systems, and new construction; and ongoing repairs, service and maintenance, ROT work, and project planning services. In addition, the company offers ventilation services, such as installation and solutions for indoor climate, air treatment, and mandatory ventilation inspection; control technology and automatics; property automation; and project planning services. Future, the company engages in the installation of cooling and heating equipment, food, process, and comfort cooling services; and technical consulting services, as well as pipe installation, cooling installation, electric power installation, infrastructure, automation, instrumentation, emission control, exhaust gas cleaning, project planning, energy, and safety services. The company was formerly known as Instalco Intressenter AB (publ) and changed its name to Instalco AB (publ) in May 2019. Instalco AB (publ) was founded in 2013 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Instalco generates revenue primarily through its installation and maintenance services in electrical, plumbing, and HVAC sectors. The company operates through a decentralized structure, allowing its subsidiaries to pursue local projects and build strong relationships with clients. Key revenue streams include contracts for new construction projects, ongoing maintenance agreements, and retrofitting existing systems to improve energy efficiency. Instalco also benefits from partnerships with various suppliers and manufacturers, enabling access to advanced technologies and enhancing service offerings. Additionally, the company's focus on sustainability and energy efficiency positions it favorably in a market increasingly driven by environmental considerations.

Instalco AB Financial Statement Overview

Summary

Results show a clear post-2023 slowdown: revenue turns slightly negative in 2024–2025 and net income falls notably versus 2023, indicating margin/earnings compression. Offsetting this, the balance sheet improves materially with a sharp 2025 debt reduction, and operating/free cash flow has been generally solid historically, though free cash flow momentum weakens sharply in 2025.

Income Statement

Revenue expanded strongly from 2020–2023, but growth turned slightly negative in 2024 and 2025, signaling a cooldown after a strong run. Profitability also looks pressured: net income dropped notably in 2024–2025 versus 2023, and operating profit levels are lower than the 2023 peak. Positives include continued profitability and a still-solid EBITDA level, but the recent margin and earnings compression keeps the score mid-range.

Balance Sheet

Leverage was elevated in 2021–2024 with debt running around or above equity, but 2025 shows a sharp reduction in total debt, which materially improves financial flexibility. Equity has remained relatively stable and the asset base has held steady, supporting balance sheet resilience. The main watch-out is that the prior years’ higher leverage suggests sensitivity if operating performance weakens again, though the deleveraging trend is a clear positive.

Cash Flow

Cash generation is generally solid: operating cash flow and free cash flow were healthy and, in most years, free cash flow covered a large portion of net income (roughly ~0.87–0.98 in 2020–2024). However, free cash flow growth has been volatile—strong in 2022–2023, then negative in 2024 and sharply negative in 2025—suggesting more uneven conversion or working-capital swings. Overall cash flow quality is decent, but the recent downturn in free cash flow momentum tempers the score.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.60B	13.69B	14.28B	12.06B	8.89B
Gross Profit	551.00M	7.23B	7.06B	5.88B	4.34B
EBITDA	1.09B	1.24B	1.46B	1.13B	912.00M
Net Income	343.00M	345.00M	601.00M	520.00M	546.00M
Balance Sheet
Total Assets	10.27B	10.31B	10.72B	9.57B	7.59B
Cash, Cash Equivalents and Short-Term Investments	348.00M	208.00M	267.00M	631.00M	696.00M
Total Debt	658.00M	3.66B	3.72B	3.13B	2.34B
Total Liabilities	6.87B	6.93B	7.33B	6.42B	5.09B
Stockholders Equity	3.23B	3.21B	3.21B	2.94B	2.48B
Cash Flow
Free Cash Flow	1.01B	821.00M	890.00M	689.00M	584.00M
Operating Cash Flow	1.01B	946.00M	999.00M	753.00M	610.00M
Investing Cash Flow	-348.00M	-297.00M	-1.29B	-1.08B	-971.00M
Financing Cash Flow	-487.00M	-706.00M	-85.00M	240.00M	657.00M

Instalco AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:INSTAL, the sentiment is Positive. The current price of 25.86 is below the 20-day moving average (MA) of 32.27, below the 50-day MA of 28.48, and below the 200-day MA of 25.98, indicating a bullish trend. The MACD of 1.98 indicates Positive momentum. The RSI at 56.98 is Neutral, neither overbought nor oversold. The STOCH value of 19.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:INSTAL.

Instalco AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BYGGP	72 Outperform	kr2.01B	14.95	―	1.24%	4.25%	127.31%
INSTAL	64 Neutral	kr8.78B	20.20	8.12%	2.67%	-3.68%	-48.79%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AFRY	59 Neutral	kr14.97B	21.23	6.97%	4.09%	-3.73%	-22.34%
VESTUM	51 Neutral	kr3.48B	-24.33	-0.85%	―	-27.41%	49.11%
NORB.B	50 Neutral	kr724.06M	28.32	1.98%	―	4.24%	29.69%
FG	46 Neutral	kr1.22B	-14.32	―	―	8.40%	-101.19%

Instalco AB Corporate Events

Instalco Wins SEK 45 Million Nursing Home Installation Contract in Örnsköldsvik

Instalco subsidiaries Alf Näslunds Eltjänst and Inlands Luft have won a contract worth about SEK 45 million to deliver comprehensive technical installations for the new Kusthöjden nursing home in Örnsköldsvik. The deal strengthens Instalco’s footprint in Northern Sweden’s public sector construction market and highlights its role in complex, multi-technology projects.

The assignment, awarded by contractor Rekab Entreprenad, covers electrical, heating, plumbing, ventilation, control and automation systems, including power, lighting, security, data and backup power solutions. As part of Örnsköldsvik municipality’s long-term investment in modern, sustainable care environments, the project will serve around 55 residents, run from spring 2026 to late 2027, and aims to be certified as a Sustainable Instalco Project, underscoring the group’s sustainability profile.

The most recent analyst rating on (SE:INSTAL) stock is a Hold with a SEK27.00 price target. To see the full list of analyst forecasts on Instalco AB stock, see the SE:INSTAL Stock Forecast page.

Instalco Ends 2025 on Stronger Footing as Margin Push Gains Traction

Instalco reported a stronger finish to 2025, with fourth-quarter net sales up 4.4% to SEK 3.77 billion and EBITA rising 39.2%, lifting the margin to 7.2% as operational improvements started to bear fruit and organic growth turned positive. For the full year, net sales were broadly flat and profitability remained below 2024 levels, but cash flow improved, net debt stayed stable, and the board proposed a lower dividend, while management intensified a group-wide efficiency programme, tightened capital allocation, and advanced its German Fabri platform through acquisitions, signalling a focus on margin expansion and long-term value creation into 2026.

CEO Per Sjöstrand highlighted that the Instalco 2.0 improvement programme has raised profitability ambitions, sharpened accountability in the decentralised structure, and strengthened financial discipline, enabling better resilience amid uneven market conditions. With a solid order backlog, a strong employee engagement score, and selective investment plans, Instalco enters 2026 with cautious confidence, prioritising execution, margin improvement, and continued development of its international platform despite expected regional and seasonal volatility.

The most recent analyst rating on (SE:INSTAL) stock is a Hold with a SEK27.00 price target. To see the full list of analyst forecasts on Instalco AB stock, see the SE:INSTAL Stock Forecast page.

Instalco wins SEK 130 million HVAC contract for Sturekvarteret redevelopment in central Stockholm

Instalco’s subsidiary LG Contracting has secured a SEK 130 million contract for heating and plumbing installations in the extensive renovation and redevelopment of Sturekvarteret around Stureplan in central Stockholm. The project, commissioned by Peab and Sturegallerian AB, covers the Sturegallerian shopping center with its retail, office and residential premises and involves integrating modern, energy‑efficient systems into historically significant buildings. LG Contracting will deliver a technologically advanced substation and a hybrid heating solution combining district heating and heat pumps, with cooling provided through free cooling tied to the district cooling network, using both visible and concealed installations to respect the site’s architecture. Sustainability, reuse and historical conservation are central to the assignment, which has already begun and is scheduled for completion in 2027, underscoring Instalco’s role in complex, high‑profile urban redevelopment projects in the Nordics.

The most recent analyst rating on (SE:INSTAL) stock is a Hold with a SEK27.00 price target. To see the full list of analyst forecasts on Instalco AB stock, see the SE:INSTAL Stock Forecast page.

Instalco Sets Date for Q4 and Full-Year 2025 Earnings Presentation

Instalco AB has announced that it will publish its fourth-quarter and full-year 2025 results on 12 February 2026 at around 07:30 CET, followed by a live webcast and teleconference presentation at 09:30 CET hosted by President and CEO Per Sjöstrand and CFO Christina Kassberg. The company is providing online access to the event and making the report and presentation materials available for download on its investor relations website, underlining its ongoing focus on transparency and accessibility for analysts and investors ahead of a key financial update.

The most recent analyst rating on (SE:INSTAL) stock is a Hold with a SEK23.50 price target. To see the full list of analyst forecasts on Instalco AB stock, see the SE:INSTAL Stock Forecast page.

Instalco Secures SEK 68 Million Contract for Solna Link Project

Instalco’s subsidiary, Ohmegi Elektro AB, has secured a contract with Skanska for electrical installations in the Solna Link office complex near Stockholm. The project, valued at approximately SEK 68 million, involves high sustainability standards and is expected to be completed by Q4 2027, enhancing Instalco’s industry positioning and collaboration with Skanska.

The most recent analyst rating on (SE:INSTAL) stock is a Hold with a SEK23.50 price target. To see the full list of analyst forecasts on Instalco AB stock, see the SE:INSTAL Stock Forecast page.