Indutrade (AO) | Buy | Q2 preview: Set up for a sequential improvement

Research evidence excerpt

Indutrade (AO) | Buy | Q2 preview: Set up for a sequential improvement

ross Western Europe delaying installation activity, but the quarter (Q1) recovered through

February and March, with March ending strongly across orders, sales and profitability and April tracking the same rates. With a

good start to Q2, we believe there is a likelihood for a sequential improvement in organic growth (+2% in Q2 against 0% in Q1).

On margins, we expect group EBITA margin of 14.2% in Q2 (+44bps YoY). The expansion is mostly M&A-driven, combined with less

FX dilution and some operating leverage as organic growth turns positive. We are slightly ahead of consensus at 14.1%.

Current order book is tilted towards PE&W, which has slightly longer lead times of 6-12 months. The business area was the main

drag in Q1, but enters Q2 with a record-high order book and a book-to-bill of 114%. Management has guided for an order book

release in Q2, but with an ever stronger effect in Q3. PE&W could be a large swing factor this quarter depending on the timing of

deliveries. We expect +2% organic growth in Q2 in PE&W.

On Life Science we expect continued momentum. Q1 delivered +9% organic order intake and +2% organic growth, broad-based

across medtech, hospital equipment and single-use, with the Novo Nordisk comparison drag that suppressed 2025 now fully

normalised. We expect +4% organic growth in Q2.

I&E will be the other positive. The largest division carried good underlying momentum into Q2 and, together with LS and PE&W,

underpins the organic pick-up we model through the year. We expect +3% organic growth in Q2.

We are more cautious on I&C and T&SS and have taken a more conservative view on the pace of improvement in both, with some

of the recovery pushed into H2 and 2027E.