Detection Technology - Growth to resume next year
DT’s Q3 was challenging, but the bottom line result was a bit better than expected as the EUR 2.8m adjusted EBITA was slightly higher than estimated. Q4 will still be on the soft side while growth is set to resume already early next year as DT sees Q1’26 top line growing at a double-digit rate.
- DT Q3 revenue declined by 8.8% y/y to EUR 24.7m, compared to the EUR 24.8m/24.8m Evli/consensus estimates, and adjusted EBITA amounted to EUR 2.8m vs the EUR 2.4m/2.7m Evli/consensus estimates. Nearly half of the revenue decrease was due to currency fluctuations.
- Medical (MBU) revenue decreased by 4.5% y/y to EUR 10.4m vs our EUR 10.2m estimate. Demand for medical CT applications continued to grow in China, however material constraints limited delivery capability.
- Security (SBU) decreased by 12.8% y/y to EUR 9.8m, compared to our EUR 9.6m estimate. Americas declined significantly due to the sales development of certain key customers, while in Europe temporary inventory reductions by an OEM customer had an impact.
- Industrial (IBU) declined by 9.2% y/y to EUR 4.5m vs our EUR 5.0m estimate. Industrial flat panel detector sales saw strong growth in China, and such demand should continue.
- DT expects a single-digit y/y decline in Q4’25 revenue (flat in terms of fixed FX rates) and double-digit growth in Q1’26. Medical and security CT applications should see stronger demand towards the year-end and into 2026.