Exel Composites - Strong profitability once again
Exel Composites’ Q4 top line was slightly above estimates, but the strong profitability was a clear positive surprise. The overall impression is very solid.
- Exel Q4 revenue was EUR 27.5m, compared to the EUR 27.2m/26.5m Evli/consensus estimates. Revenue grew by 3.5% y/y. Q4 growth was strong in Europe and Asia-Pacific.
- Wind power revenue was EUR 6.6m vs our EUR 8.9m estimate (down by 6% y/y). Strongness in other segments, notably Buildings and infrastructure, helped compensate for this weakness relative to our estimate. Wind power’s relatively low share may have also helped the earnings beat.
- Exel Q4 adj. EBIT amounted to EUR 2.7m vs the EUR 2.2m/1.8m Evli/consensus estimates. Adjusted operating margin was therefore a very strong 9.9%.
- Q4 order intake was EUR 33.4m and thus increased by 5.7% y/y.
- Exel guides revenue and adjusted operating profit to increase in 2021 compared to 2020.
- The Board of Directors proposes EUR 0.20 per share dividend distribution, the same as our estimate.