Exel Composites - Clearly above estimates
Exel’s Q2 report didn’t disappoint as both revenue and profitability clearly topped estimates. Growth was driven by a new aerospace application within the Transportation customer industry. Exel leaves guidance unchanged, which now appears cautious, but the company seems set to advance on its improving track.
- Exel Q2 revenue grew by 13.5% y/y to EUR 38.1m, compared to the EUR 36.8m/35.7m Evli/consensus estimates. Growth in North America was an important contribution, which stemmed from a new aerospace application in the Transportation customer industry.
- Wind power landed at EUR 6.5m vs our EUR 8.7m estimate, while Buildings and infrastructure was EUR 8.9m vs our EUR 9.2m estimate. Equipment and other industries amounted to EUR 5.9m, compared to our EUR 6.1m estimate.
- Adjusted EBIT was EUR 3.1m vs the EUR 2.4m/2.2m Evli/consensus estimates. Adjusted EBIT margin was therefore a very decent 8.2%. The US unit’s performance continued to improve. Exel has been able to adjust its sales prices to reflect higher raw materials, logistics and energy prices.
- Order intake amounted to EUR 37.0m in Q2, down by 14.9% y/y but flat q/q as there were large Wind power last year which were later cancelled.
- Exel guides revenue in 2022 to be at last year’s level while adjusted operating profit will increase compared to 2021 (unchanged).