Vaisala - Stellar profitability
Vaisala’s Q1 net sales were approximately in line with our estimates at EUR 135.6m (Evli est. EUR 133.5m), while the company’s profitability beat our estimates by a wide margin as EBITA climbed to EUR 20.5m (Evli est. EUR 14.2m).
- Q1 group result: Vaisala’s Q1 net sales came close to our estimate at EUR 135.6m (Evli est. EUR 133.5m) with growth of 21% as the company bounced back from weaker Q1/24 as was expected. On the other hand, the profitability was at significantly higher level than we expected as EBITA climbed to EUR 20.5m (Evli est. EUR 14.2m) with a margin of 15.1%.
- Industrial measurements (IM): Orders received increased by 17% y/y while order book grew 1% to EUR 36.8m. Net sales were at EUR 59.7m, growing strongly at 24% y/y. Net sales grew very strongly in the power and lice science market segments and strongly in the industrial instruments segment. IM gross margin was very high at 64.4% (58.4%) and EBITA at EUR 12.9m with a margin of 21.7% (Q1/24 EUR 6.7m, 14.0%).
- Weather and Environment (W&E): Orders received decreased by 15% y/y while order book was up by 14% y/y. W&E’s net sales increased by 18% to EUR 75.9m. Net sales grew especially strongly in subscription sales aided by acquisitions (+63% y/y, 12% y/y excl. inorganic growth). Net sales grew very strongly in aviation and meteorology segments and decreased very strongly in the renewable energy segment. Net sales decreased slightly in the road segment. Gross margin improved to 51.8% (Q1/24 51.0%). EBITA was at EUR 7.6m (Q1/24 EUR 2.1m) with a margin of 9.9% (3.3%).
- The development and market comments on renewable energy segment was the main negative in the report. Vaisala has been able to grow within the renewable energy vertical at rapid pace during the recent years. We expect that while the renewable energy has slowed down globally, United States has the weakest outlook with permitting practices for offshore wind projects under review.
- Outlook 2025 (unchanged): Net sales EUR 590-620m and EBITA EUR 90-105m. The outlook excludes potential significant changes in market conditions.