Cavotec: 48% org sales, but negative EBIT - ABG

Higher sales, but also higher losses
Solid demand outlook, some caution on margins
Margins and neg. FCF to remain in focus


Q4 details

The order backlog grew 49% y-o-y and -4% q-o-q to EUR 147m (% vs. ABGSCe 151m). Revenues grew 48% y-o-y organically (ABGSCe 46%) to EUR 47m (% vs. ABGSCe 46m) as the delivery pace improved from the backlog. EBIT reached EUR -1.6m (ABGSCe -0.4m). Net debt increased from EUR 24m in Q3'22 to 30m (vs. R12m EBITDA of 2m and a Q4 cash balance of 9.6m), as lease adj. FCF from continuing operations was negative at -4m. The total impact from working capital changes was positive, but inventories and receivables increased due to the higher level of deliveries, while FCF from discontinued operations continued to have a negative impact of -5m. Looking ahead, the CEO sees solid demand, and aims to now fully focus on generating "satisfactory profitability". However, long lead times and prices on existing orders could still have an impact on upcoming deliveries.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/cavotec/Equity-research/2023/2/cavotec---48-org-sales-but-negative-ebit/