The report was strong, beating our estimates across the board. Net sales came in 36% higher than expected, while EBITDA was almost five times higher than expected. This marks three consecutive EBITDA-positive quarters. However, we remain cautious about extrapolating the trend as Gasporox had an order backlog of at least SEK8.5m for delivery during H1’23. We suspect a large part of this was delivered in Q1.

Gasporox continues to expand geographically, primarily in the US, adding three distributors during the quarter and one after the quarter end, according to its LinkedIn page. Most of these remain small with little online presence. Consequently, we do not anticipate a significant immediate impact on Gasporox’s sales from these new partnerships. During the quarter, Gasporox continued to expand its product offering, launching its HMI software due to customer requests. Our view is that the software enhances the comprehensiveness of the product offering and reduces the friction associated with selling machines. Over time, we view additional software as a way to improve Gasporox’s value proposition and increase its product stickiness.

While the report was strong, we believe the strong order backlog contributed to the results, likely resulting in a weaker Q2’23. Thus, we have lowered our Q2’23 net sales estimate by cSEK1.3m. Otherwise, we are keeping our existing estimates. Our base case implies an EV/EBITDA multiple of 13x for 2025e. This aligns with the peer group, which we find is fair. Gasporox is set to showcase a new product, AutoMAP, which will be presented at Interpack in May. This could act as a catalyst for the share. Otherwise, we expect continued strong performance and order announcements to be the main catalysts.