Attendo (OM:ATT) Lifts Profit Margins Despite Flat Sales—What Does This Signal for Future Growth?

• Attendo AB (publ) recently completed the repurchase of 1,563,391 shares for SEK 106.24 million, finalizing its buyback program initiated in July, and reported third-quarter results showing net income of SEK 333 million on revenue of SEK 4,784 million for the period ended September 30, 2025.
• Despite slightly lower sales year-over-year, the company posted a substantial increase in profitability, with basic earnings per share rising from SEK 1.50 to SEK 2.24 for the quarter.
• We'll examine how Attendo's robust earnings growth, despite revenue pressure, reshapes its investment outlook and margin improvement expectations.

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Attendo Investment Narrative Recap

To be a shareholder in Attendo, you need confidence in the company’s ability to drive margin growth through operational efficiencies and capacity expansion in a challenging regulatory and contract environment. The recent buyback and robust Q3 earnings highlight strong short-term profitability, but do not materially alter the ongoing risk from terminated home care and outsourcing agreements that continue to weigh on reported sales. The most relevant recent announcement is the Q3 earnings release, which showed improved net income and earnings per share despite year-over-year declines in revenue, an important indicator for those watching near-term margin trends and underlying profitability. However, while earnings momentum grabs attention, investors should also be aware that continued contract exits and flat sales raise critical questions about long-term growth if...

Read the full narrative on Attendo (it's free!)

Attendo's narrative projects SEK 20.5 billion in revenue and SEK 896.1 million in earnings by 2028. This requires 2.2% yearly revenue growth and a SEK 332.1 million earnings increase from the current earnings of SEK 564.0 million.

Uncover how Attendo's forecasts yield a SEK83.50 fair value, a 5% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community submitted a single fair value estimate of SEK69 for Attendo, showing no diversity but also suggesting a lower outlook than professional benchmarks. Against a backdrop of terminated contracts and flat revenue, these singular perspectives underline how investor expectations may differ, see how community members assess the company's future direction for yourself.

Explore another fair value estimate on Attendo - why the stock might be worth as much as SEK69.00!

Build Your Own Attendo Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Attendo research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Attendo research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Attendo's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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