Raute - Strong earnings but weak orders
Raute’s EUR 43.8m Q2 top line came in clearly below our estimate, yet the EUR 6.5m comparable EBITDA was basically in line with our estimate as Wood Processing continued to deliver very high margins. The very low EUR 12m in new orders was a clear negative as equipment orders were almost completely lacking, yet Wood Processing and Analyzers should see demand recovery towards next year especially in Europe.
- Raute Q2 revenue declined by 23.3% y/y to EUR 43.8m vs our EUR 53.9m estimate, while Wood Processing was EUR 30.4m vs our EUR 38.8m estimate. Services amounted to EUR 9.9m, compared to our EUR 10.6m estimate, whereas Analyzers landed at EUR 3.5m vs our EUR 4.5m estimate.
- Raute comparable EBITDA was EUR 6.5m, compared to our EUR 6.7m estimate, while EBIT came in at EUR 1.9m vs our EUR 5.2m estimate due to the impairments associated with the factory closure in China. Wood Processing EBITDA was EUR 4.2m vs our EUR 4.2m estimate, whereas Services was EUR 1.9m vs our EUR 1.8m estimate. Analyzers amounted to EUR 0.4m, compared to our EUR 0.7m estimate. Raute reached 14.7% comparable EBITDA margin and exceeded its 12% target for the first time on a rolling 12-month basis.
- Q2 order intake amounted to EUR 12m vs our EUR 36m estimate. The very low order intake was mostly concentrated in the Services business (after-sales services and spare parts orders). Discussions about equipment orders within Wood Processing and Analyzers were reactivated towards the end of Q2, but this didn’t yet lead to new orders. Demand should however improve in H2’25 and FY’26 especially in Europe.
- Order book totaled EUR 115m at the end of Q2 (EUR 223m a year ago).
- Raute guides FY’25 revenue to be in the range of EUR 190-220m and comparable EBITDA of EUR 20-27m (unchanged).