Hawk Infinity Software-Flat EBITDA on FX and softer service sales; deleveraging reiterated-05/26/2026

Research evidence excerpt

Hawk Infinity Software-Flat EBITDA on FX and softer service sales; deleveraging reiterated-05/26/2026

Hawk Infinity Software

CREDIT NEWSFLASH | 26 MAY 2026

Flat EBITDA on FX and softer service sales; deleveraging reiterated

Snowball reported PF EBITDA of NOK 1.085bn, below PASe EBITDA of NOK 1.123bn, due to FX headwinds and softer new

sales and projects, the latter of which management expects to improve from Q2 onwards. Furthermore, following the

acquisition completed in early April, PF leverage ended at 4.3x, broadly flat compared to the previous quarter. Positively,

management highlighted that this will most likely be the final acquisition, and reiterates focus on deleveraging, positioning

the company for a refinancing down the road. Overall, while operational performance was soft during the quarter, the credit

story remains unchanged in our view, supported by solid liquidity and improved visibility on deleveraging. As such, we

continue to find current pricing attractive.

Key bullets

• Snowball reported revenues of NOK 861m and EBITDA of NOK 220m. Adjusted for the acquisitions completed in Q1, pro forma LTM

revenues and adjusted EBITDA were NOK 3.68bn and NOK 1.085bn, respectively, reflecting modest y-o-y top-line growth, while EBITDA

remained flat (PASe EBITDA of NOK 1.123bn).

• The softer performance was attributed FX headwinds and softer new sales and project, particularly within certain IT and managed service

provider businesses. The company expects the latter to improve from Q2 onwards, suggesting that this was most likely a one-off soft

quarter.

• Reported leverage ended at 4.3x, broadly flat compared to the end of the previous quarter (PF-adjusted). Adjusted for the April acquisition,

leverage remained roughly unchanged at 4.3x (PASe 4.2x).