Exel Composites - Improvement y/y but soft q/q
Exel’s Q3 revenue continued to grow y/y, albeit not quite as fast as was estimated since the figures softened a bit q/q due to seasonality but also because of extended market uncertainty. The revenue miss left the EUR 0.7m adjusted EBIT short of the EUR 1.5m/1.0m Evli/consensus estimates even if it improved by almost EUR 2m y/y. Exel retains its previous guidance, which was to be expected in any case.
- Exel Q3 revenue grew by 19.7% y/y to EUR 24.6m vs the EUR 26.5m/26.0m Evli/consensus estimates. Growth was driven by all customer industries at double-digit rates, apart from Energy (where deliveries from the new Indian factory are to pick up in 2025). Engineered Solutions Business Unit reported EUR 20.0m in Q3 revenue, while Industrial Solutions did EUR 4.6m.
- Adjusted EBIT was EUR 0.7m, compared to the EUR 1.5m/1.0m Evli/consensus estimates. Operating margin was 2.9% and hence increased by almost 900bps y/y. Q3 saw actions to optimize capacity, cost control and operational measures.
- Q3 order intake amounted to EUR 21.0m, a decrease of 7.8% y/y. Q3 is often seasonally the weakest quarter. This was seen in Engineered Solutions’ performance, while Industrial Solutions fared better q/q.
- Exel guides revenue to increase and adjusted EBIT to increase significantly in FY’24 y/y (unchanged).