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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 Q4 Results: A Step in the Right Direction

AFRY's Q4 2025 results showed a mixed bag, with revenues coming in at SEK 6.6 billion and an EBITA margin of 8.7%, an improvement from 8.3% last year. However, EPS came out at SEK 1.94, significantly lower than estimates of SEK 3.5. The company's restructuring efforts are expected to yield benefits in the coming quarters, with Bo Sandstrom mentioning that they see "12-month paybacks on those savings".

Publication Date: Feb -24

📋 Highlights
  • EBITA Margin Improvement:: Q4 EBITA margin reached 8.7%, up from 8.3% in the prior year, driven by operational efficiency and restructuring efforts.
  • Order Backlog Growth:: Adjusted order backlog increased 5.4% year-over-year, with strong contributions from Energy and Transportation & Places divisions.
  • Dividend Proposal:: Board proposed a dividend of SEK 6 per share for 2025, reflecting a solid financial position and confidence in future performance.
  • New Client Contracts:: Secured significant agreements, including a project management contract with MEPCO and a framework deal with Vattenfall, boosting strategic positioning.
  • Utilization Rate Target:: Aimed to improve full-year utilization to 74% by 2028, up from mid-2025 levels, through restructuring and resource management initiatives.

Financial Performance

The company's financial performance was impacted by global uncertainty and currency effects, with a calendar-adjusted EBITA margin in line with last year. Despite this, AFRY saw an improvement in the EBITA margin and utilization rate in Q4, as well as a strengthened order backlog and strong cash flow. The order backlog improved 5.4% adjusted for currency, a positive sign for future growth.

Segment Performance

AFRY's global divisions have unique dynamics, with Energy having a stable order backlog and strong profitability, while Industry has been impacted by global macroeconomic and geopolitical uncertainty. Transportation & Places has seen capacity adjustments, but has an exciting strategic journey ahead. The company has won several significant new client contracts, including a project management services contract with MEPCO and a framework agreement with Vattenfall.

Valuation

With a P/E Ratio of 18.16 and a Dividend Yield of 4.68%, AFRY's valuation appears reasonable. The company's ROE is 6.31%, and ROIC is 6.01%, indicating a decent return on equity and invested capital. The EV/EBITDA ratio is 8.02, which is relatively low. Analysts estimate next year's revenue growth at 5.5%, which could lead to a re-rating of the stock if the company can deliver on its growth prospects.

Outlook

AFRY is committed to a profitability uplift and will secure the right mix in the order backlog. Despite price pressure in some segments, they're diligent about not letting in a poor mix. The company is also monitoring AI closely, seeing it as a mid- or long-term topic that affects different disciplines or focus areas rather than specific segments or sectors. With a strong order backlog and a solid financial position, AFRY is well-positioned for future growth.

3. NewsRoom

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Afry AB (AFXXF) Q4 2025 Earnings Call Highlights: Strategic Restructuring and Strong Financial ...

Feb -08

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Top European Dividend Stocks To Consider In December 2025

Dec -30

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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

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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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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: 5.7/10

Value: 5.1

Growth: 7.4

Quality: 5.5

Yield: 8.8

Momentum: 1.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Afry

A-Score: 5.5/10

Value: 6.7

Growth: 5.2

Quality: 5.5

Yield: 6.9

Momentum: 4.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Kier

A-Score: 5.4/10

Value: 7.1

Growth: 4.9

Quality: 3.9

Yield: 3.1

Momentum: 8.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Costain

A-Score: 5.1/10

Value: 6.1

Growth: 4.4

Quality: 5.5

Yield: 2.5

Momentum: 8.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
MT Højgaard Holding

A-Score: 4.9/10

Value: 7.0

Growth: 4.4

Quality: 5.5

Yield: 1.2

Momentum: 9.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Trakcja

A-Score: 4.2/10

Value: 4.3

Growth: 3.7

Quality: 5.0

Yield: 0.0

Momentum: 9.5

Volatility: 2.7

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

128.3$

Current Price

128.3$

Potential

-0.00%

Expected Cash-Flows