Cavotec: Seventh quarter of EBIT improvement - ABG

Orders -9%, sales +10% vs. ABGSCe
EBIT EUR 3m (vs. ABGSCe 2m), for a margin of 7%
Profitability improvements driven by P&M division


Q3: Profitability improvements

Order intake came in at EUR 36m (-9.3% vs. ABGSCe 40m), -5.4% y-o-y. Sales came in at EUR 44m (+10% vs. ABGSCe 40m), +5.1% y-o-y (+4.8% org.). EBIT improved and came in at EUR 3m (+49% vs. ABGSCe 2m), for a margin of 6.8% (ABGSCe +5.1%), driven by its Ports & Maritime segment. FCF lease adj. came in at EUR -1.7m (-142% vs. ABGSCe 4m), -150% y-o-y. We find it promising that the company demonstrated an improvement in profitability through increased cost control. However, FCF was negative due to lower customer pre-payments and increased receivables. Management states that the development of its working capital will remain a key focus area for the company.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/cavotec/Equity-research/2024/11/cavotec---seventh-quarter-of-ebit-improvement/