* Record-high order backlog of EUR 160m * Sales EUR 42.6m, adj. EBIT 1.0m * Trading at 12-8x '27e-'28e
ANNONS
Q3 results
Cavotec reported better Q3 results, improving orders, sales and earnings on undemanding comps last year. Order intake came in at EUR 46.8m (+23% vs. ABGSCe 38.1m, +29% y-o-y), for a R12m b-t-b of 1.2x. One MoorMaster and one shore power order were pre-announced in the quarter, with a combined value of EUR 13m. Sales came in at EUR 42.6m (+12% vs. ABGSCe 37.9m), +19% y-o-y (organic growth +17%). Adj. EBIT was EUR 1.0m (vs. ABGSCe EUR 0.2m), for a margin of 2.4% (ABGSCe 0.4%). Growth was driven by Ports & Maritime (+27%, y-o-y, +21% vs. ABGSCe), where EBIT rose to EUR 1.5m (0.3m) for a margin of 6.0%, in line with our estimate. The EBIT beat came from Industry, with EBIT of EUR 1.9m (2.0m LY) at a 10.6% margin (7.0% ABGSCe). Management flags intensified competition in vessel-side shore power products, which is weighing on margins.
Estimates and outlook
The Q3 numbers in isolation imply EBIT adj. +9% '27e. Management reiterates positive outlook following the strong order backlog, and also highlights that the cost-saving and improvement initiatives are going according to plan.
Valuation
The share has returned -1% L10D (vs. OMXSALLS +4%), and is currently trading at 12x-8x '27e-'28e EV/EBIT adj. on our pre-report estimates. The company is hosting a conference call at 10:00 CET.
