Exel Composites - Q3 profit hit harder than estimated
Exel’s top line continued to grow very fast in Q3, while the ramp-up of a Wind power product in the US impacted profitability more than estimated. Exel expects profitability improvement already for Q4 and specifies guidance.
- Q3 revenue grew by 28.2% y/y and amounted to EUR 33.4m, compared to the EUR 30.4m/30.6m Evli/consensus estimates. Europe and North America drove growth in Q3.
- Wind power was EUR 8.6m vs our EUR 9.0m estimate. Buildings and infrastructure amounted to EUR 8.1m, compared to our EUR 6.8m estimate.
- Adjusted EBIT was EUR 0.1m vs the EUR 1.9m/1.7m Evli/consensus estimates. EBIT margin amounted to 0.3% vs our 6.3% estimate. The low profitability was due to the ramp-up of a specific high-volume carbon fiber Wind power product. The current US labor market situation also poses its own challenges, and the poor profitability seen in the US masks profitable growth in the other regions.
- Q3 order intake was EUR 24.6m and increased by 0.2% y/y. There were some cancelled orders.
- Exel guides FY ’21 revenue to increase significantly and adjusted operating profit to decrease (unchanged). Exel specifies FY ’21 revenue to amount to EUR 125-135m and adjusted operating profit EUR 5.8-7.0m. The midpoints imply EUR 32.1m revenue and EUR 1.4m adj. EBIT for Q4 (vs the respective EUR 31.7m and EUR 2.3m estimates).