Detection Technology - Figures and outlook as expected
DT’s Q4 results were largely in line with estimates as revenue declined by 6% y/y while EBITA was down EUR 1.5m to EUR 3.7m. Security applications declined even more than we estimated while medical was clearly stronger, leading DT’s figures very close to our estimates. DT expects to see double-digit growth over H1’26, as previously indicated.
- DT Q4 revenue decreased by 6.1% y/y to EUR 29.7m vs the EUR 29.4m/29.2m Evli/consensus estimates, while adjusted EBITA was EUR 3.7m vs the EUR 3.7m/4.1m Evli/consensus estimates. Profitability was hit by lower sales as well as product mix tilted towards MBU. The end of the lifecycle of an analog product family led to higher costs, weighing on profitability. DT revenue remained flat on fixed FX basis.
- Medical (MBU) revenue increased by 19.1% y/y to EUR 14.9m, compared to our EUR 12.6m estimate. The Chinese market drove growth.
- Security (SBU) decreased by 28.5% y/y to EUR 10.0m vs our EUR 11.7m estimate. A strong comparison period, the after-effects of the aviation 100ml regulation, an OEM customer’s inventory buffer, and a temporary standstill in Indian demand despite a recovering market were behind the weak top line.
- Industrial (IBU) decreased by 6.6% y/y to EUR 4.8m, compared to our EUR 5.1m estimate. Line scan demand remained modest, while TFT flat panel sales were strong in the APAC region. Food industry saw good demand.
- The BoD proposes a dividend per share of EUR 0.30 to be distributed for FY’25, compared to the EUR 0.26/0.25 Evli/consensus estimates.
- DT expects double-digit y/y revenue growth for Q1’26 and H1’26, as it had previously indicated.