We were expecting EDAG would have a difficult Q2, as the company is very European and services mostly the automotive sector. However, we had not anticipated a decline of this scale: revenues were down by 32.6% in Q2. Unsurprisingly, the EBIT margin was significantly in negative territory (-14.4%).
Assystem Bounced Back in June
As expected, Assystem suffered in Q2 2020: revenues declined by 13.7% yoy CC/CS during the quarter. Staffing was down by 16.3%, while Energy & Infrastructure did somewhat better (-13.3%). The core nuclear engineering business was down by 10.1% (our estimate).
Alten Does Better than Expected in Q2. H2 Outlook Is Uncertain
Alten announced better than expected revenues in Q2 with a CC/CS decline of 18.4% (we expected -23%), after a growth of 4.0% in Q1. During H1, the decline was 7.3% (guidance: -9%).
Sweco Demonstrates Its Resilience Despite COVID-19
Sweco had already demonstrated its resilience in Q1, with a +4% organic growth. In Q2, despite COVID-19, the company remained in positive territory (+2%). The performance is a surprise, as Sweco is very sensitive to the number of working days.
Earnings Preview: Revenues of Alten to Plunge in Q2
ER&D’s largest pure-play globally, Alten, will be announcing its Q2 2020 revenue by the end of July. The company had a very decent Q1, with a 4% CC/CS revenue growth. However, it warned that revenues would be down by ~22% in Q2.
AFRY Hit by Collapse in Automotive Engineering Demand in Q2
No surprise. AFRY had a terrible Q2 2020: revenues were down by 9.2% yoy at CC/CS. The Industry and Digital Solutions Division led the decline (with revenues down yoy at 16.3% at CC/CS). The Division suffered in the automotive sector, whose revenues collapsed by 40% during the quarter.