Raute - High orders and stable guidance
Raute’s Q4 margins were a bit lower than we estimated even if top line was higher than we expected. The EUR 50m order intake was clearly higher than we expected and was a strong result as the figure didn’t include any larger orders. The prospects for a sustained market recovery seem still somewhat unclear, however Raute guides quite stable results for FY’25 at this point.
- Raute Q4 revenue grew by 24.9% y/y to EUR 56.5m vs our EUR 54.8m estimate. Wood Processing was EUR 41.1m, compared to our EUR 39.3m estimate, while Services amounted to EUR 11.6m vs our EUR 10.7m estimate. Analyzers came in at EUR 3.7m vs our EUR 4.8m estimate. Especially spare parts and on-site services demand remained strong.
- Comparable EBITDA amounted to EUR 5.1m, compared to our EUR 5.5m estimate, whereas EBIT was EUR 3.5m vs our EUR 4.1m estimate. Wood Processing EBITDA was EUR 3.3m, compared to our EUR 3.1m estimate, while Services was EUR 1.3m vs our EUR 1.7m estimate. Services’ costs were temporarily higher partly due to development work to support future growth. Efficiency improvements slightly helped Analyzers’ profitability.
- Q4 order intake was EUR 50m vs our EUR 21m estimate. Orders improved after a few quiet quarters even though they didn’t include any mill-sized projects, however the prospects of a strong sustained market recovery are still a bit unclear.
- Order book amounted to EUR 184m at the end of Q4 (EUR 266m a year ago).
- The BoD proposes a dividend of EUR 0.55 per share to be distributed for FY’24, compared to our EUR 0.20 estimate.
- Raute guides FY’25 revenue to be between EUR 190-220m and comparable EBITDA between EUR 17-24m.