Exel Composites - Lots of growth, softish profitability
Exel’s Q4 results extended recent earnings reports trends to a certain degree. Top line continued to grow a lot faster than was expected, but profitability was still a bit soft relative to estimates. Exel made some progress with the challenges in the US, but it remains unclear just how quick earnings will improve this year.
- Q4 revenue grew by 32.7% y/y and was EUR 36.5m vs the EUR 32.0m/31.8m Evli/consensus estimates. North America contributed by far the most to growth.
- Wind power was EUR 8.3m vs our EUR 7.9m estimate while Buildings and infrastructure amounted to EUR 8.4m, compared to our EUR 8.5m estimate. Equipment and other industries landed at EUR 7.1m, clearly above our EUR 5.4m estimate.
- Adjusted EBIT came in at EUR 1.0m vs the EUR 1.3m/1.4m Evli/consensus estimates. Exel USA’s profitability improved a bit q/q but continued to drag results.
- Q4 order intake was EUR 30.5m, down by 8.8% y/y.
- Exel guides flat revenue and increasing adjusted EBIT for FY ’22. In our view it is hard to guide increasing revenue this early in the year given the high comparison figure. Consensus estimates for FY ‘22 adjusted EBIT, at EUR 10.5m, are clearly above the EUR 6.0m comparison figure and we see it is likewise difficult to give any stronger wording this early in the year.
- The BoD proposes EUR 0.20 per share dividend to be distributed, compared to the EUR 0.25/0.22 Evli/consensus estimates.