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GOMspace: Feedback from ABGSC Investor Day - ABG

On track for FY’22 targets
Expects TAM to increase by 100% FY’22-’24
Attractive 5y EBIT margin horizon
Strong order backlog to support FY’22 targets

Today ABGSC hosted the GomSpace CEO Niels Buus at our Investor Day seminar. During the presentation, we learned that GomSpace remains on track to reach its FY’22 goals, supported by a very strong order backlog going into the year (SEK ~500m vs. the FY’22 revenue guidance of SEK 264m-292m). Of course, to drive growth during the company’s current “technology focus” phase, new employees are required. The company is gradually gaining more employees, but still requires more.

Moving towards high growth and high earnings
GomSpace wants to move from a high growth/low earnings technology focused stage to a high growth/high earnings stage. Management plans to do this by utilising the company’s technological platforms and strengths, moving into more constellation manufacturing (e.g. a potential Indra order of +200 satellites, to be delivered between 2024-2027, if won) and by extending its service-oriented offerings. Currently GomSpace’s revenue split is 30/70 manufacturing (high margin) / engineering (low margin, but provides technology for the company). The company’s vision is to reach a 60/40 split between 2022 and 2026.

Improved sales mix and scale to drive margin improvements
The vison for an improved sales mix, combined with the company’s high expectations for future market growth to drive scalability (it expects the total addressable market to increase by 100% between FY’22 and FY’24 vs. ABGSCe GomSpace revenue growth of 67.5%), provides an attractive 5-year horizon for EBIT margin improvements.

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