Cavotec - Sales miss, but orders rebound - ABG
This is a third party research report and does not necessarily reflect our views or values
Stronger order intake, but lower sales
Cavotec reported order intake of EUR 44m (+7% vs. ABGSCe 41m), +10% y-o-y. However, sales came in lower than expected at EUR 36m (-17% vs. ABGSCe 43m), -16% y-o-y. Management writes that increased global economic uncertainty has made customers more cautious, leading to postponed orders with shorter lead times that would typically have been booked and invoiced within the year. EBIT adj. also declined at EUR -0.38m (vs. ABGSCe 3.4m), for a margin of -1% (ABGSCe +8%), mainly driven by the lower sales but also ramp-up costs ahead of major P&M deliveries. In addition, EBIT also included a one-off EUR 0.34 m cost for relocating the registered office to Sweden. FCF lease adj. came in at EUR -1.4m (-15% vs. ABGSCe -1.7m).
Estimates and outlook
On numbers alone, '25e-'27e sales change by -4%, and EBIT adj. changes by SEK -3m. Management remains confident in the company’s long-term growth, citing strong market fundamentals driven by electrification and climate goals. However, they note short-term uncertainty, with customers remaining cautious due to interest rates and tariffs, impacting short-lead-time orders.
Valuation
The share has returned +18% L3M (vs. peer median +38% and OMXSALLS +9%), and is currently trading at 26x-16x '25e-'27e P/E on our pre-report estimates vs. the peer median of 21x-16x. The company is hosting a conference call at 10:00 CEST.
Cavotec reported order intake of EUR 44m (+7% vs. ABGSCe 41m), +10% y-o-y. However, sales came in lower than expected at EUR 36m (-17% vs. ABGSCe 43m), -16% y-o-y. Management writes that increased global economic uncertainty has made customers more cautious, leading to postponed orders with shorter lead times that would typically have been booked and invoiced within the year. EBIT adj. also declined at EUR -0.38m (vs. ABGSCe 3.4m), for a margin of -1% (ABGSCe +8%), mainly driven by the lower sales but also ramp-up costs ahead of major P&M deliveries. In addition, EBIT also included a one-off EUR 0.34 m cost for relocating the registered office to Sweden. FCF lease adj. came in at EUR -1.4m (-15% vs. ABGSCe -1.7m).
Estimates and outlook
On numbers alone, '25e-'27e sales change by -4%, and EBIT adj. changes by SEK -3m. Management remains confident in the company’s long-term growth, citing strong market fundamentals driven by electrification and climate goals. However, they note short-term uncertainty, with customers remaining cautious due to interest rates and tariffs, impacting short-lead-time orders.
Valuation
The share has returned +18% L3M (vs. peer median +38% and OMXSALLS +9%), and is currently trading at 26x-16x '25e-'27e P/E on our pre-report estimates vs. the peer median of 21x-16x. The company is hosting a conference call at 10:00 CEST.