Cavotec: Encouraging margins and cash flow - ABG

1% org. sales (ABGSCe 19%), 4.1% margin (ABGSCe 3.8%)
Q3 in isolation would yield limited estimate revisions
Small positive due to margins, cash flow and gearing


Q3 details

Better-than-expected backlog, lower sales growth, but higher margins and cash flow. The order backlog declined 11% y-o-y and -3% q-o-q to EUR 137m (+4% vs. ABGSCe 132m). Revenues grew 1% y-o-y organically (ABGSCe 19%) to EUR 42m (-14% vs. ABGSCe 49m) as Ports & Maritime grew 4% while Industry declined 7%. EBIT reached EUR 1.7m (-7% vs. ABGSCe 1.8m), for a margin of 4.1% (ABGSCe 3.8%, 1.3% Q3'22). Net debt decreased from EUR 23m to 21m, as lease adj. FCF was EUR ~3m, which yielded a R12m ND/EBITDA of 2.8x. Looking ahead, the CEO highlighted a EUR ~7m shore power order won in early Q4, and that the focus on growing profitably has resulted in a normalisation of the order backlog, while customers carefully evaluate their investment decisions due to the current macroeconomic environment.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/cavotec/Equity-research/2023/11/cavotec---encouraging-margins-and-cash-flow/