Etteplan - Uncertainties remain high
Etteplan’s Q1 was softer than expected with organic net sales down 8.0% y/y (at comparable FX), a steeper drop than we forecasted. Continued weak demand, combined with significant negative NRIs, kept reported earnings at low levels.
- Net sales in Q1 were EUR 94.9m (Evli est. EUR 100.2m, EUR 97.1m in Q1/24), revenue decreased by 2.3% as organic net sales decreased by 8.0% (at comparable FX).
- EBIT in Q1 amounted to EUR 4.2m (Evli est. EUR 6.1m, EUR 6.7m in Q1/24), at a margin of 4.4% (Evli est. 6.1%).
- The combined effect of NRI’s on EBITA and EBIT was EUR -1.3m for the quarter. Excl. NRI’s, EBITA margin would have been 7.5% (Evli est. 8.1%).
- EPS in Q1 amounted to EUR 0.09 (Evli est. EUR 0.15, EUR 0.16 in Q1/24).
- Net sales in Engineering Solutions in Q1 were EUR 52.9m (Evli est. EUR 54.4m), EBITA in Q1 amounted to EUR 3.5m (Evli est. EUR 4.5m). The segment suffered from substantial NRIs amounting to EUR 0.8m. NRI’s included cost items relating to adaptation measures and a significant credit loss in Germany.
- Net sales in Software and Embedded Solutions in Q1 were EUR 23.1m (Evli est. EUR 26.8m), EBITA amounted to EUR 1.9m (Evli est. EUR 2.3m). Excl. NRI’s the profitability was in line with our estimates.
- Net sales in Technical Communication and Data Solutions in Q1 were EUR 18.9m (Evli est. EUR 18.8m), EBITA amounted to EUR 0.8m (Evli est. EUR 1.3m).
- The slump in investment activity continued and affected demand negatively. The decision making on new investments showed small signs of recovery during the quarter yet the escalation of trade war casted a new shadow on the emerging recovery.
- Guidance 2025 (specified): Revenue is estimated to be EUR 365-395m (prev. EUR 365-400m), EBIT EUR 23-28m (EUR 23-30m).
- Our current estimate for 2025E net sales is at EUR 385m and EBIT at EUR 25.4m, therefore there is no imminent downside pressure to our estimates for the full year.