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Raute: Profitability improved - Evli

Raute reached an already reasonable EUR 1.9m EBIT in Q3. Both revenue and profitability beat our estimates. Q3 order intake did not quite reach our estimate, but Raute’s order book touched an all-time high of EUR 150m.

- Raute’s Q3 revenue grew by 36% y/y to EUR 37.9m vs our EUR 36.0m estimate. Project deliveries amounted to EUR 23.1m, compared to our EUR 21.5m estimate. Technology services’ top line was EUR 14.8m vs our EUR 14.5m estimate. Raute estimates maintenance service sales to have been even higher without the pandemic travel restrictions.
- Q3 EBIT amounted to EUR 1.9m, compared to our EUR 1.4m estimate. The 5.1% operating margin topped our 3.9% estimate. The result was also weakened by a few unexpected cost items, including a large expense related to the repair of an important machine tool at Raute’s Nastola plant.
- Order intake was EUR 58m vs our EUR 63m estimate. Project deliveries orders amounted to EUR 37m while we expected EUR 46m. Technology services orders were EUR 21m, compared to our EUR 17m estimate. Modernization projects helped services’ order intake.
- Order book amounted to EUR 150m at the end of Q3 (EUR 62m a year ago).
Raute guides revenue to increase and operating profit to improve this year (unchanged).
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