SinterCast: Near-term headwinds, strong mid-term outlook - ABG

Better than feared, sales still down 20% y-o-y, but margin held up well
Near-term market and programme shut-down headwinds persist
But new installations very strong, we raise '25e-'26e EBIT by ~6%


Q3 results

The Q3 numbers beat our lowered expectations, with the beat mainly driven by higher sampling cup sales, which we thought would come down more ahead of lower Q4 production, but also somewhat higher equipment sales. With headwinds from the previously announced programme shut-down, 10-20% lower volume reductions at most EU and NA OEMs due to the softening commercial vehicle market, and a weaker USD, sales were down 20% y-o-y, but the adj. EBIT margin of 40.6% only came down 0.9pp y-o-y, due to reduced opex.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/sintercast/Equity-research/2024/11/sintercast---near-term-headwinds-strong-mid-term-outlook/