Vaisala - Strong start to the year and outlook update
Vaisala’s Q1 result beat our and consensus expectations. Both Bu’s performed better than expected thanks to good market environment. As a result of strong start to the year, Vaisala raises lower limit of its business outlook for 2021: net sales will be in the range of 380–400 MEUR and EBIT in the range of 35–45 MEUR (earlier was net sales 370-400 and EBIT 30-45). Outlook update did not come as a surprise and our 2021e estimates were already within new guidance.
- Group level results: Q1 net sales increased by 5% to 92 MEUR (86.5 Evli / 85.7 cons). Q1 EBIT came in at 8.1 MEUR (5.9 Evli / 5.0 cons), resulting in 8,8% EBIT-margin (Q1’20: 5.2 MEUR, 6% EBIT-margin)
- Gross margin was 54,8% vs. 56,4% last year.
- Orders received were 106.1 MEUR vs. 88.7 MEUR last year. Orders received grew by 18%; 15% in W&E and 22% in IM. Order book was 155.4 MEUR vs. 141.6 MEUR in Q1’20.
- Weather & Environment (W&E) net sales increased by 1% to 52.2 MEUR vs. 47 MEUR our expectation. W&E EBIT was -0.9 MEUR (-2.6 MEUR Evli). W&E’s orders received grew by 15%. Orders received increased in renewable energy and ground transportation market segments, whereas orders received in meteorology market segment were at previous year’s level. Aviation market improvement has stalled, and orders received in this segment decreased compared to previous year.
- Industrial Measurements (IM) net sales grew 12% to 39.7 MEUR vs. 39.5 MEUR our expectation. IM EBIT was 9.4 MEUR (8.9 MEUR Evli), resulting in 23,8% EBIT-margin (Q1’20: 21,4%). IM order intake growth was 22%. Increase in orders received was strong in all market segments. Relative growth was strongest in power industry applications, although its share of orders received was still below 10%.
- As a result of strong start to the year, Vaisala raises lower limit of its business outlook for 2021: net sales will be in the range of 380–400 MEUR and EBIT in the range of 35–45 MEUR (earlier was net sales 370-400 and EBIT 30-45).