• Orders +43%, sales -3% vs. ABGSCe
• EBIT adj. EUR 3.8m, for a margin of 8.3% (vs. ABGSCe 3.3m, 7%)
• Strong order intake, book-to-bill above 1 (1.35)

Q4 results

Cavotec reported strong order intake of EUR 61m (+43% vs. ABGSCe 43m), +52% y-o-y, driven to a large extent by shore power orders in the Ports & Maritime segment. Sales came in at EUR 45m (-3% vs. ABGSCe 47m), -15% y-o-y. The company continued to improve its profitability and EBIT adj. came in strong at EUR 3.8m (+15% vs. ABGSCe 3.3m), for a margin of +8% (ABGSCe +7%). The company writes that EBIT has been adjusted for non-recurring costs related to the investigation of potentially moving its registered office from Switzerland to Sweden. Additionally, FCF lease adj. came in at EUR 0.92m (-25% vs. ABGSCe 1.2m).

Estimates and outlook

On numbers alone, '24e-'26e sales change by -1%, and EBIT adj. changes by +4%. We are encouraged to see that Cavotec's order intake momentum has picked up and for the quarter the company showed a book-to-bill >1 (~1.35) for the first time since Q1'23. The company received several significant orders during the quarter (EUR 17.5m announced), suggesting a resurgence in momentum.

Valuation

The share has returned +11% L3M (vs. peer median +5% and OMXSALLS +11%), and is currently trading at 44x-14x '24e-'26e P/E on our pre-report estimates vs. the peer median of 19x-17x. The company will host a conference call of the Q4 results at 10:00 CET.