Raute - Revenue and EBIT low, orders high
Raute’s Q2 revenue and EBIT were clearly worse than we expected, however order intake was well above our estimate. It is always unclear how well single quarter order intake extrapolates, but if new orders remain near the EUR 40m level seen in Q2 Raute will be able to fill the gap left by Russian business relatively quickly.
- Q2 revenue declined by 16.5% y/y and amounted to EUR 29.6m vs our EUR 38.0m estimate. Project revenue was EUR 12.7m, compared to our EUR 23.0m estimate, while services revenue was EUR 16.9m vs our EUR 15.0m estimate.
- EBIT was EUR -15.1m vs our EUR -10.7m estimate. The result was burdened not only by the write-offs related to Russian projects but inefficiencies due to the reorganization of work. Cost inflation remained a significant profitability headwind.
- Order intake came in at EUR 40m, compared to our EUR 30m estimate. Project orders were EUR 21m vs our EUR 15m estimate, while services orders amounted to EUR 19m vs our EUR 15m estimate. There were no single large orders, however modernization orders were at a high level and included a significant EUR 10m Latvian order.
- Order book was EUR 104m at the end of Q2, including EUR 16m in Russian orders.