Raute - High EBITDA, low new orders
Raute’s very high EUR 7.4m Q1 comparable EBITDA was driven by Wood Processing, which continued its strong operational execution. Order intake however slowed again after a more promising Q4. More sustained market recovery still has to be waited for, meaning Raute’s comparison figures for next year may turn out to be challengingly high as the company still has enough order book to make this year a very profitable one.
- Raute Q1 revenue grew by 16.1% y/y to EUR 51.9m, compared to our EUR 53.3m estimate, as Wood Processing came in at EUR 37.9m vs our EUR 38.7m estimate. Services was EUR 10.3m vs our EUR 10.2m estimate while Analyzers amounted to EUR 3.7m, compared to our EUR 4.4m estimate.
- Raute comparable EBITDA landed at EUR 7.4m, compared to our EUR 5.9m estimate, while EBIT was EUR 5.9m vs our EUR 4.4m estimate. Wood Processing EBITDA amounted to EUR 5.5m vs our EUR 3.3m estimate while Services was EUR 1.6m vs our EUR 1.8m estimate (Services profitability decreased due to a higher share of cost allocations from the group). Analyzers came in at EUR 0.3m, compared to our EUR 0.7m estimate, as the segment achieved fixed cost savings.
- Q1 order intake was EUR 15m vs our EUR 26m estimate. The demand for end-user products of Raute’s customers increased slightly despite the construction market uncertainty, which especially hurts softwood plywood demand. Hardwood plywood and LVL demand has remained more stable, while special applications demand has benefited birch plywood. The North American market was especially slow, and a wider recovery in Raute’s markets may have to wait until well into H2’25.
- Order book amounted to EUR 146m at the end of Q1 (EUR 259m a year ago).
- Raute guides FY’25 revenue to be in the range of EUR 190-220m and comparable EBITDA of EUR 20-27m (guidance updated on Apr 25).