Detection Technology: Positioned to grow more - Evli

DT already achieved a strong year in terms of profitability, and although earnings growth may no longer continue quite that steep going forward there’s still potential due to MBU.

Earnings gains now more challenging without sales growth

DT’s EUR 31.6m Q4 revenue was in line with the EUR 32.0m/31.5m Evli/cons. estimates, and the EUR 5.2m EBITA was also not a big surprise relative to the EUR 4.8m/5.2m Evli/cons. estimates. Q4 EBITA improved by EUR 0.6m y/y, driven by better productivity and continued favorable sales mix (higher share of SBU relative to MBU). DT already achieved cost reductions some time ago and so in our view EBITA may not grow much further in Q1’25 as temporary issues within the SBU market limit growth, however we believe the expected double-digit growth from Q2 onwards should again help profitability to improve by almost EUR 1m y/y every quarter.

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