Alfa Laval Earnings: Marine Segment's Turnaround Yields Strong Profit Growth for the Group

Wide-moat Alfa Laval delivered impressive adjusted EBITA growth of 36% during the third quarter. Its EBITA margin expansion of 200 basis points to 16.7% was driven by restructuring initiatives in the marine and energy segments, as well as a favorable sales mix to higher-margin services. Its organic order intake grew 2% during the third quarter; management expects it to be at a similar level in the fourth quarter. While we expect to update our estimates in our model, we don't expect our SEK 312 fair value estimate to change materially.