Ovzon: Terminal sales dip, but Ovzon-3 ramps up - ABG
Strong SATCOM sales, but surprising setback in terminal sales '25e-'26e sales down 8-9% on FX headwinds Ovzon-3 continues to ramp up, providing good outlook for 2025
ANNONS
SATCOM sales more than doubled in Q1
After three consecutive quarters of improved sales and earnings, Q1 saw a small setback. Sales totalled SEK 90m, below our forecast of SEK 104m. However, this was mainly due to terminal sales (SEK 13m vs. ABGSCe of SEK 25m), which tends to be lumpy on a quarterly basis. Meanwhile, SATCOM sales were largely in line with our forecast and continued to grow strongly (+111% y-o-y) on the back of recent orders and easy comps. The majority of these sales were still related to the leased capacity business, but Ovzon-3 continues to ramp up, and we believe it generated sales of ~SEK 29m, compared to our estimate of ~SEK 17m in Q4. We note here that the SEK 185m 12-month order from SSC only contributed in March, so there is an additional 2 months of tailwind in Q2e. In addition, Ovzon announced a USD 1.7m order from a new NATO customer on 31 March, which will also contribute to Q2. Finally, FCF of SEK 54m was strong due to some prepayments, but we expect some headwinds to FCF in the coming quarters from a normalising NWC.
