SinterCast: Another production record, NRI hurts margin - ABG

Revenue SEK 40.4m, up 35% y-o-y, adj. EBIT margin 41% (44%)
Accounts for income tax from Q4'23, pays cash taxes from late '27e
'23e-'25e adj. EBIT down 9-3%, but outlook intact


Q3: EEs and SCs as preannounced, -2.4m NRI

As preannounced, EEs hit a record 4.2m (3.6m), and sampling cups were strong as well at 63k (45k). Revenue was 40.3m, up 35% y-o-y (4% FX). EBIT was 14.3m (13.0m) for a margin of 36% (44%), but adjusted for NRIs of SEK -2.4m (intangible impairment and severance payments related to Tracking Technologies), adj. EBIT was 16.7m (13.0m) for a margin of 41% (44%). This converted into net profit of SEK 14.2m (11.1m) and EPS of SEK 2.00 (1.57). The UAW strike had no effect on SinterCast volume in the quarter and the strikes at SinterCast's affected customers Ford and Stellantis have now been resolved.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/sintercast/Equity-research/2023/11/sintercast---another-production-record-nri-hurts-margin/