CAF to supply 88 buses to Swedish transport operator Nobina for €50 million

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Intermoney: According to various media reports, Nobina, one of Sweden’s leading transport operators, has awarded CAF (Buy P.O. €42) the supply of 88 electric buses of various Urbino intercity and city models for the regions of Skåne, Värmland, and the city of Malmö. The total amount of this order will exceed €50 million. CAF continues to consolidate its position in Sweden, following several contracts won last year, including the supply of 55 Urbino 15 LE electric buses for the same operator to operate in Stockholm, and 23 electric buses for the city of Kristianstad.

Assessment: Positive news, although of relative impact due to the size of the contract, which would not represent even 5% of Solaris’ total portfolio and would be less than 1% of CAF’s total. With this contract, CAF’s backlog exceeds €14bn and order intake is above €1bn. They expect to grow 10% in revenues this year and improve their EBIT vs. 2023.

By 2026 they expect to reach revenues of €4.8bn (+25% vs. 2023), EBIT of €300m (+67% vs. 2023) and keep debt at around 2.2x EBITDA. We maintain our buy recommendation with a P.O. of €42/share.

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