Aspo - Earnings beat, guidance intact
Aspo’s Q1 EUR 8.8m comparable EBITA comfortably beat the estimates, while the company retains its previous guidance for now as demand is generally picking up from low levels.
- Aspo Q1 revenue from continuing operations was EUR 151.2m, compared to the EUR 152.4m/154.3m Evli/consensus estimates, while comparable EBITA amounted to EUR 8.8m vs the EUR 7.2m/7.8m Evli/consensus estimates.
- ESL revenue landed at EUR 42.8m, compared to the EUR 49.3m/49.0m Evli/consensus estimates, whereas comparable EBITA was EUR 4.1m vs the EUR 3.5m/3.6m Evli/consensus estimates. Contractual freight volume demand was somewhat softer than expected, but earnings improved thanks to performance improvement efforts (including the expiration of loss-making time-charter agreements). Demand is expected to be weak overall in H1’25, and contractual volumes are fairly low with low spot market pricing. Slow volume recovery is expected for H2’25.
- Telko revenue amounted to EUR 73.2m vs the EUR 69.2m/69.6m Evli/consensus estimates and comparable EBITA was EUR 4.4m, compared to the EUR 3.9m/4.3m Evli/consensus estimates. Completed acquisitions, continued organic growth and the absence of M&A costs helped profitability to improve. Sales prices were generally on a slightly higher level y/y and rather stable q/q. Positive sales margin development continued in Q1, mainly due to acquisitions. Uncertainty has postponed some customer projects. Stable market development is expected as demand slowly picks up.
- Leipurin revenue came in at EUR 35.2m, compared to the EUR 33.9m/34.3m Evli/consensus estimates. Comparable EBITA was EUR 1.5m vs the EUR 1.2m/1.3m Evli/consensus estimates. Overall volumes declined modestly, mainly in low-margin commodities, while average sales prices slightly increased. The earnings improvement was mainly driven by supply chain optimization in Sweden. The market is expected to be stable.
- Aspo guides FY’25 comparable EBITA to be in the range of EUR 35-45m (unchanged).