Revenue came in at SEK216, missing Redeye estimates (RRe) by 4%. However, the quarter was heavily weighted by FX headwinds. Thus, on a like-for-like basis, sales were only 1% below our estimate. Security grew 16% in constant currencies and represented 45% of sales. Network declined 3% and came in 3% below expectations on a currency-adjusted basis. EBITDA came in at SEK72m, which was only 1% below estimates, while EBITDAC came in at 5% below estimates and landed at SEK48m. However, the EBITDAC margin was in line.

Enea continues to build momentum, signing a three-year agreement with a Tier-1 network operator in North America for the Stratum offering for 2025-2027. The committed contract value is USD17.7m (~SEK190m) with potential extensions up to USD21.3m (~SEK230m). Existing orders are incorporated in the new agreement. Thus, the incremental value ranges between USD5m-9m.

Redeye increased its estimates and its fair value range from SEK60-170 with a Base Case of SEK110 to SEK65-180 with a Base Case of SEK120. Enea is valued at an EV/S 2025e of 2.2x and an EV/EBITDAC on 2025e of 9.4x, with good margins and mid-single-digit-to-low double-digit growth. We calculate that the buyback program has been close to fully utilized, which may reduce the share's momentum. Enea will host a capital markets day on 4 December, where we expect updated targets that may catalyze the share.