Vaisala - Better than expected results
Vaisala’s Q3’25 results were clearly better than estimated in terms of both revenue and profitability, however there were still some mixed underlying developments as W&E saw continued weak orders and yet was able to post relatively strong results for the quarter. IM’s Q3 earnings were a bit soft relative to estimates, but its outlook remains strong going forward.
- Vaisala Q3 revenue grew by 13% y/y to EUR 154.0m, compared to the EUR 142.5m/144.2m Evli/consensus estimates, while EBITA amounted to EUR 28.0m vs the EUR 26.5m/25.8m Evli/consensus estimates. Vaisala’s EBITA margin was thus 18.2% (18.9% a year ago).
- Industrial Measurement orders received increased by 9% y/y to EUR 61.5m, whereas order book declined by 1% y/y to EUR 36.3m. IM Q3 revenue was EUR 60.7m, up by 6% y/y, compared to the EUR 61.9m/61.4m Evli/consensus estimates. IM gross margin was 61.2% (63.1% a year ago) while EBITA landed at EUR 14.4m (EUR 15.7m) vs our EUR 17.0m estimate, meaning a margin of 23.7% (27.3%).
- IM demand developed positively across all market segments, and especially in the APAC region.
- Weather and Environment orders received decreased by 39% y/y to EUR 58.0m while order book was down by 21% y/y to EUR 144.1m. W&E Q3 revenue amounted to EUR 93.3m, up by 18% y/y, vs the EUR 80.7m/82.7m Evli/consensus estimates. W&E gross margin came in at 50.0% (53.1%) and EBITA was EUR 13.7m (EUR 10.3m) vs our EUR 9.5m estimate. W&E EBITA margin was therefore 14.6% (13.0%).
- W&E was driven by large project deliveries in the meteorology market as well as subscription sales, while the weak renewable energy market continued to hurt orders received.
- Vaisala previously guided FY’25 revenue to be in the range of EUR 590-605m and EBITA of EUR 90-100m. Vaisala retains the guidance, implying respective guidance midpoints of EUR 163m revenue and EUR 27m EBITA for Q4’25.