Exel Composites - Decent results
Exel Composites’ Q3 top line exceeded expectations while operating margin remained at a good level and absolute profitability increased y/y.
- Exel Composites’ Q3 revenue was EUR 26.0m (up 10% y/y) vs the EUR 24.1m/23.4m Evli/consensus estimates.
- Wind power recorded EUR 7.8m in revenue, compared to our EUR 6.5m estimate. Asia-Pacific developed strong, where Q3 revenue increased to EUR 6.8m from EUR 4.3m.
- Adjusted EBIT amounted to EUR 2.0m, in comparison to the EUR 2.3m/2.0m Evli/consensus estimates. Adjusted operating margin was thus 7.8% vs our 9.5% estimate. According to Exel profitability was negatively impacted by the uneven distribution of revenues across business units, and together with the pandemic production efficiency and profitability were impaired especially in the US business unit.
- Q3 order intake declined by 10% to EUR 24.5m mainly due to a partial cancellation of a large order in the US booked in Q1. Exel nevertheless says underlying demand across all customer industries has slightly improved recently.
- Exel reinstates FY ’20 guidance and expects revenue to increase or to remain at previous year’s level, while adjusted operating profit is set to increase. In our view the guidance is rather unsurprising.