Arctic: Endur ASA - Firing on all cylinders

Research evidence excerpt

Arctic: Endur ASA - Firing on all cylinders

Positioned for scalable growth through M&A and organic expansion

Endúr continues its active M&A pace with two new acquisitions (Enviro Entreprenør and Wimo),

bringing recent deals to seven. Transactions are struck at an average of ~6.2x EV/EBIT, well below

Endúr’s ~12x, supporting accretion and value creation. Management reiterates a strong outlook,

with rising infrastructure and defence opportunities enabling greater selectivity and margin focus.

We expect the company to deliver strong organic growth in 2026 while continuing to pursue M&A,

targeting both bolt-on acquisitions and larger platform opportunities. Following the Q1 report and

the bolt-on acquisitions we increase our 2026-27 EBITA with 4-3%.

We reiterate our Buy recommendation with a TP of NOK 145 (140)

We reiterate our Buy recommendation with a TP of NOK 145. What we like about the equity

case is 1) a leading niche player in the Norwegian/Swedish infrastructure market, with proven

ability to manage project risk supported by a strong financial and project track record, 2) Solid

revenue visibility through a NOK ~8bn order backlog and a strong pipeline of projects with some

already won, but contingent on FID, 3) the acquisition of VAQ and Totalbetong Group, together

with the existing ownership of Artec Aqua, creates a comprehensive turn-key supplier, offering

complete project solutions and serving as a one-stop shop for land-based aquaculture facilities, 4)

the company should achieve strong FCF of ~10% in 2027, enabling continued deleveraging, further

consolidation of the infrastructure market, and potentially increased shareholder distributions

(potential for dividends of up to 20-40% of EPS) and 5) the potential for the company to divest