Cavotec: Profitability improvements, but lower orders - ABG

Q3 sales EUR 44m (+5% y-o-y), order intake EUR 36m (-5% y-o-y)
Margin improvements but slight decline in orders
We raise '24e-'26e sales +2% and EBIT EUR +1-2m


Seventh quarter of EBIT improvements

Cavotec reported Q3 sales of EUR 44m, +5% y-o-y (+4.8% org., 0.3% FX). We had expected higher orders in the quarter, and order intake was slightly lower both y-o-y (-5%) and q-o-q (-10%) at EUR 36m. As a result of the company's change programmes, however, profitability and margins continued to improve both q-o-q and y-o-y, with EBIT of EUR 3m (2m in Q3'23) for a margin of 7% (4% in Q3'23). FCF lease-adj. was negative at EUR -1.8m due to lower customer pre-payments and increased receivables, but should improve in the coming quarters as the company continues to focus on its working capital.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/cavotec/Equity-research/2024/11/cavotec---profitability-improvements-but-lower-orders/