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1. Company Snapshot

1.a. Company Description

Afry AB provides engineering, design, and advisory services for the infrastructure, industry, energy, and digitalization sectors in Sweden, Finland, Norway, Switzerland, Denmark, Germany, and internationally.The company operates through five divisions: Infrastructure, Industrial & Digital Solutions, Process Industries, Energy, and Management Consulting.The company offers architecture and design services; automation and manufacturing solutions; automotive and mobility services; building solutions for airports, culture and sports facilities, high security facilities, hospitals, healthcare and research, hotels and restaurants, and housing facilities; defense technology systems; digital solutions, and information and communication technology services; and engineering and consulting services for energy and power applications.


It also offers environmental and sustainability solutions; services for food, life science, and pharmaceutical industries; management consulting services; solutions for processing industries, including mining and metals, food and beverage, pulp and paper, chemical, and forest industries; product development services; project management services; transport infrastructure services; and solutions for water management.The company was formerly known as ÅF Pöyry AB (publ) and changed its name to Afry AB in June 2021.Afry AB was founded in 1895 and is headquartered in Stockholm, Sweden.

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1.b. Last Insights on AFRY

Afry AB's recent performance is driven by its robust energy division growth, which has strengthened the company's position despite market headwinds. The company's strategic focus on core sectors, such as energy and infrastructure, has also contributed to its resilience. Additionally, Afry AB's dividend yield of up to 6.5% makes it an attractive option for investors seeking stability and income in uncertain market conditions. The company's commitment to regular payouts, as highlighted in recent articles, underscores its ability to navigate economic uncertainty and fluctuating market performance.

1.c. Company Highlights

2. Afry's Q3 Results: Stable Performance Amidst Restructuring

Afry delivered a stable Q3 performance, with a reported net sales decline of 5.1% year-over-year to SEK 5.7 billion, while the EBITA margin improved to 6.4%. The company's EBITDA, excluding items affecting comparability, stood at SEK 362 million. The actual EPS came out at '1.21', significantly lower than the estimated '3.65'. The order backlog increased 3.6% to SEK 20.4 billion, or 5.3% when adjusted for currency effects, indicating a solid foundation for future growth.

Publication Date: Nov -29

📋 Highlights
  • Improved EBITA Margin:: 6.4% EBITA margin despite 5.1% year-over-year net sales decline to SEK 5.7 billion.
  • Order Backlog Growth:: 3.6% increase to SEK 20.4 billion (5.3% adjusted for currency effects).
  • Restructuring Costs:: SEK 31 million in Q3, with total expected costs of SEK 200-300 million from Q3 2025 to Q2 2026.
  • Energy Division Performance:: High project activity with 9.8% profitability despite negative sales growth due to currency effects.
  • Industry Division Recovery:: Improved profitability year-over-year amid challenging markets, driven by capacity adjustments.

Segmental Performance

The Energy division saw high project activity, but negative total sales growth due to significant currency effects and short-term regional variations, reporting a solid profitability level of 9.8%. The Industry division experienced a challenging market but improved profitability year-over-year due to ongoing capacity adjustments and improved utilization. The restructuring agenda continued in Q3, with reported restructuring costs of SEK 31 million, and the company estimates total restructuring costs of SEK 200-300 million from Q3 '25 to Q2 '26.

Restructuring and Cost Optimization

The company is undergoing a significant restructuring program, with costs estimated at SEK 200-300 million, aimed at improving utilization rates and profitability. The leadership within Transportation is undergoing a transition, with an acting solution in place and a recruitment process for a successor. Employee sentiment remains positive, with a good understanding of the strategic direction and commitment among employees.

Valuation and Outlook

Afry's current valuation metrics indicate a 'P/E Ratio' of 19.34, 'P/B Ratio' of 1.42, and 'P/S Ratio' of 0.66. The 'EV/EBITDA' stands at 8.75, suggesting a relatively reasonable valuation. Analysts estimate next year's revenue growth at 3.4%. The company's guidance for the full year is expected to be higher than last year, driven by a high activity level and currency-related effects. Overhead costs are expected to normalize over the next few quarters, with no significant effects from the restructuring program on the group's materiality.

Key Project Wins and Future Prospects

The company secured key project wins in Q3, including a pre-feasibility study for the Sakatti mining project in Finland and a strategic framework agreement with Svenska Kraftnät in Sweden. The order book shows broad-based development with no segment without orders, although Energy had a relatively stronger order book. The company will present its new strategic direction and plans at its Capital Markets Day on November 4, which is expected to provide further clarity on its future prospects.

3. NewsRoom

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Afry AB (FRA:B3Y1) Q3 2025 Earnings Call Highlights: Strong Order Backlog and Improved ...

Oct -24

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3 Global Dividend Stocks Yielding Up To 9.7%

Sep -30

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European Dividend Stocks To Consider For Your Portfolio

Aug -25

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Afry AB (FRA:B3Y1) Q2 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...

Jul -16

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European Dividend Stocks To Consider In June 2025

Jun -30

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3 European Dividend Stocks Offering Yields Up To 4.4%

May -02

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Afry AB (FRA:B3Y1) Q4 2024 Earnings Call Highlights: Navigating Market Challenges with ...

Feb -08

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3 Reliable Dividend Stocks Offering Up To 6.5% Yield

Feb -07

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.11%)

6. Segments

Infrastructure

Expected Growth: 5%

Afry AB's Infrastructure segment growth is driven by increasing demand for sustainable and digitalized infrastructure solutions, government investments in transportation and energy projects, and the need for efficient project management and consulting services. Additionally, the company's strategic acquisitions and partnerships have expanded its service offerings and geographic reach, contributing to its 5% growth.

Industrial & Digital Solutions

Expected Growth: 4%

Afry AB's Industrial & Digital Solutions segment growth is driven by increasing demand for digitalization and automation in industries, expansion into new geographies, strategic acquisitions, and a strong order backlog. Additionally, the segment benefits from the growing need for sustainable and efficient solutions, as well as investments in research and development to stay ahead in the competitive landscape.

Process Industries

Expected Growth: 3%

Afry AB's Process Industries segment growth is driven by increasing demand for sustainable solutions, digitalization, and automation in industries such as pulp and paper, chemicals, and pharmaceuticals. Additionally, the company's strong project execution capabilities, strategic partnerships, and investments in R&D contribute to its growth.

Energy

Expected Growth: 4%

Energy from Afry AB's 4% growth is driven by increasing demand for renewable energy solutions, government incentives for sustainable infrastructure, and strategic partnerships with key industry players. Additionally, Afry's diversified energy portfolio and expansion into emerging markets contribute to its growth momentum.

Management Consulting

Expected Growth: 3%

Afry AB's Management Consulting segment growth is driven by increasing demand for digital transformation, operational efficiency, and strategic advisory services. The company's expertise in industries such as energy, infrastructure, and industrial sectors also contributes to its growth. Additionally, Afry's strong project management capabilities and ability to deliver complex projects efficiently further supports its growth.

Group Common

Expected Growth: 2%

Afry AB's Group Common segment growth is driven by increasing demand for digitalization and electrification in the industrial sector, coupled with the company's strategic acquisitions and investments in emerging technologies. Additionally, the segment benefits from a strong order backlog and a growing presence in the Nordic region, contributing to a growth rate of 2.

7. Detailed Products

Digitalization and IT

Afry provides digital solutions and IT services to industries such as energy, infrastructure, and industrial processes.

Innovation and R&D

Afry offers innovation and R&D services to help clients develop new products, services, and processes.

Project Management

Afry provides project management services for large-scale projects in industries such as energy, infrastructure, and industrial processes.

Urban Planning and Design

Afry offers urban planning and design services to help cities and municipalities develop sustainable and resilient infrastructure.

Water and Environment

Afry provides water and environmental services to help clients manage water resources, mitigate environmental impacts, and develop sustainable solutions.

Industry and Process

Afry offers industry and process services to help clients optimize industrial processes, improve efficiency, and reduce costs.

8. Afry AB's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Afry AB is moderate, as there are some alternative products and services available in the market, but they are not highly attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers for Afry AB is low, as the company has a strong brand reputation and customers are loyal to its products and services.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Afry AB is moderate, as the company has a diverse supplier base and is not heavily dependent on a single supplier.

Threat Of New Entrants

The threat of new entrants for Afry AB is high, as the industry is attractive and there are low barriers to entry, making it easy for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry for Afry AB is high, as the industry is highly competitive and there are many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 34.24%
Debt Cost 6.20%
Equity Weight 65.76%
Equity Cost 10.58%
WACC 9.08%
Leverage 52.07%

11. Quality Control: Afry AB passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Multiconsult

A-Score: 6.5/10

Value: 5.6

Growth: 7.6

Quality: 5.8

Yield: 8.8

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Kier

A-Score: 5.3/10

Value: 7.1

Growth: 4.9

Quality: 3.8

Yield: 1.9

Momentum: 9.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Afry

A-Score: 5.1/10

Value: 6.2

Growth: 5.2

Quality: 5.2

Yield: 6.2

Momentum: 3.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
MT Højgaard Holding

A-Score: 5.0/10

Value: 6.6

Growth: 4.4

Quality: 5.2

Yield: 1.2

Momentum: 10.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Costain

A-Score: 5.0/10

Value: 6.3

Growth: 4.4

Quality: 5.5

Yield: 2.5

Momentum: 8.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Trakcja

A-Score: 4.5/10

Value: 8.0

Growth: 3.6

Quality: 4.6

Yield: 0.0

Momentum: 8.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

156.6$

Current Price

156.6$

Potential

-0.00%

Expected Cash-Flows