Cavotec: A step in the right direction - ABG

Solid Q4, despite tough comps
Strong orders (+52% y-o-y) and profitability improvements
14x-9x '25e-'27e EV/EBIT


Orders picking up

Despite tough comps from Q4'23, Cavotec delivered a solid Q4. The company reported sales of EUR 45m, down 15% y-o-y but up 3% q-o-q. Order intake was particularly strong in the quarter, at EUR 62m (vs. ABGSCe 43m), +52% y-o-y, implying a book-to-bill of 1.35x, the highest level since Q1'23. Orders were largely driven by orders within shore power, with strong demand in Europe, driven by regulations (EUR 17.5m announced orders in Q4). We find it positive that order intake is picking up after a period of a lower book-to-bill. In terms of profitability, the company's increased focus on operational efficiency enabled it to increase its EBIT margin to 8%, the highest level since Q4'19, driven by strong margins in the PM segment (EBITDA margin of 17.6%).

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