Raute - High earnings and new orders
Raute recently issued another positive profit warning, according to which FY’25 revenue will be slightly lower than previously anticipated while comparable EBITDA will remain high in absolute and especially relative terms. Q3 results were clearly better than we estimated especially in terms of EBITDA margin while the EUR 38m order intake was also a positive surprise. There’s still global uncertainty affecting market demand, but it now seems Raute’s order book development could stabilize soon after being on a declining trend for almost two years.
- Raute Q3 revenue declined by 5.8% y/y to EUR 43.7m, compared to our EUR 48.8m estimate. Wood Processing amounted to EUR 31.6m, vs our EUR 33.3m estimate, while Services was EUR 8.5m vs our EUR 11.3m estimate. Analyzers came in at EUR 3.5m, compared to our EUR 4.2m estimate.
- Raute comparable EBITDA landed at EUR 6.5m, vs our EUR 5.8m estimate, whereas EBIT was EUR 5.1m vs our EUR 4.3m estimate. Wood Processing EBITDA amounted to EUR 4.8m, compared to our EUR 3.6m estimate, while Services was EUR 1.2m vs our EUR 1.7m estimate. Analyzers did EUR 0.5m, compared to our EUR 0.5m estimate.
- Q3 order intake was EUR 38m, while we expected EUR 31m. Market demand is expected to recover further towards next year as European construction activity continued to improve in Q3. Some customers in North and South America have however continued to postpone their investment decisions because of the tariffs, which also affects Asian manufacturers due to their reliance on exports.
- Order book amounted to EUR 108m at the end of Q3 (EUR 188m a year ago).
- Raute guides FY’25 revenue to be in the range of EUR 175-190m and comparable EBITDA of EUR 22-27m. The guidance midpoints thus indicate Q4’25 revenue and comparable EBITDA to be respectively EUR 43.1m and EUR 4.1m.