‘Hard to make business profitable’, ‘limited synergies’
Timo Heinonen, an equity analyst covering the company at Handelsbanken, told us that ultimately the company had to get storage out of its profit and loss reporting because of the dilutive effect it was having on group margins.
And while the deal may seem odd or less favourable for the company, from a wider group perspective it made sense.
“They tried to divest it conventionally but failed,” he said, alluding to the strategic review launched in 2023 but ended in early 2025. “Demand is pretty weak at the moment. It used to be a US-dominated business, but with everything happening, they had to find new markets, but those markets are crowded and price pressure is intense.”
“It’s primarily a software business, so they have to invest in R&D all the time to stay with the competition. But it’s hard to make the business profitable, so it’s diluting the group profitability.”
