Etteplan - Profitability resilient despite weak demand
Etteplan issued a profit warning yesterday alongside preliminary Q3 figures. Today's full results were broadly in line with our estimates, which still reflected the old guidance. Profitability improved clearly from last year’s weak levels, supported by adaptation measures and continued progress in AI-driven solutions, despite a challenging demand situation.
- Net sales in Q3 were EUR 82.2m (Evli est. EUR 83.0m, EUR 80.0m in Q3’24), up 2.8% y/y. At comparable FX net sales increased by 2.4%.
- EBITA in Q3 was EUR 5.6m (Evli est. EUR 5.5m, EUR 2.9m in Q3’24).
- Reported EBIT in Q3 amounted to EUR 4.1m (Evli est. EUR 3.9m, EUR 1.4m in Q3’24), at a margin of 4.9%. Profitability improvement in Q3 was strong as expected, reflecting mainly the weaker comparison period.
- The combined effect of NRIs on EBITA and EBIT was EUR -0.2m for the quarter
- EPS in Q3 amounted to EUR 0.10 (Evli est. EUR 0.08, EUR 0.00 in Q3’24).
- Net sales in Engineering Solutions in Q3 were EUR 47.3m (Evli est. EUR 47.0m), EBITA in Q3 amounted to EUR 3.8m in line with our estimates. Demand remained soft, and the 13% revenue increase was mainly driven by the Novacon acquisition.
- Net sales in Software and Embedded Solutions in Q3 were EUR 17.9m (Evli est. EUR 20.0m), EBITA amounted to EUR 0.7m (Evli est. EUR 1.4m). Net sales declined 18% y/y, leading to new adaptation measures in the service area.
- Net sales in Technical Communication and Data Solutions in Q3 were EUR 17.1m (Evli est. EUR 15.9m), EBITA amounted to EUR 1.4m (Evli est. EUR 0.6m). AI-driven service solutions and efficiency improvements contributed positively to performance.
- Guidance 2025 (lowered prior to the Q3 report): Revenue is estimated to be EUR 355-370m (prev. EUR 365-385m), EBIT EUR 17-20m (prev. EUR 19-24m).